Home Industry Strategy eBay sniffs out Australia's sweet retail wastes
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eBay's approach with x.commerce is to create a developer community, basically with a view to creating and selling a range of relatively inexpensive apps which merchants can buy, plug into the x.commerce fabric and connect to online marketplaces such as eBay itself or Gumtree, social networks or group buying sites, and shipping companies while also offering direct retail services such as discount coupons or online payment, quickly establishing a much richer online presence and range of services.

'Instead of hiring developers you are shopping for technology,' said Mr Mengerink.

He claimed that there were already 900,000 developers working with the company on its platforms such as PayPal, GSI and Magento which it hopes will embrace the x.commerce concept and develop apps. In Australia he claimed that there were around 28,000 developers who were working with eBay at some level, although mostly focussed around PayPal applications.

'In Australia the current situation for local retailers is very difficult,' said Mr Mengerink. 'With these tools the consumer can say 'we can shop online'.'

He also telegraphed the ability to harness x.commerce tools to establish a global online presence so that international consumers could more easily purchase Australian goods and services. Although the Australian dollar is currently strong, he argued that 'There are still currencies above the $A and if you are not selling there you are missing out on margins.'

'The market opportunity in Australia is phenomenal for us,' he added, claiming that the country had been identified as one of the top three international markets for x.commerce.

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Beverley Head

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Beverley Head is a Sydney-based freelance writer who specialises in exploring how and why technology changes everything - society, business, government, education, health. Beverley started writing about the business of technology in London in 1983 before moving to Australia in 1986. She was the technology editor of the Financial Review for almost a decade, and then became the newspaper's features editor before embarking on a freelance career, during which time she has written on a broad array of technology related topics for the Sydney Morning Herald, Age, Boss, BRW, Banking Day, Campus Review, Education Review, Insite and Government Technology Review. Beverley holds a degree in Metallurgy and the Science of Materials from Oxford University and a deep affection for things which are shaken not stirred.

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