eBay targets retailers in bid to become IT partner

 

Warns retailers on differential pricing.

eBay says it hopes to leverage the $3 billion it spends on technology and technology-related acquisitions each year to become the IT partner of Australian retailers.

eBay Australia managing director Deborah Sharkey said connected consumers and emerging mobile technology were leaving retailers struggling to catch up.

“It stands to reason that the retailers that have access to the best and more robust technology platforms will be best positioned to succeed,” Sharkey told journalists ahead of a major retail conference being held in Sydney today.

eBay spent $2.4 billion acquiring online store development and hosting group GSI Commerce in 2011. Other acquisitions have included mobile transactions company Zong, mobile price comparison tool Red Laser, and open online commerce platform Magento.

eBay said Magento is now one of the fastest growing eCommerce platform providers in Australia, counting Harvey Norman, The Good Guys, Sheridan and Nike among its Australian clients.

Now eBay is gearing up to protect its turf from Amazon, which launched its web services business in Australia last year, and has been rumoured to be looking at local retail opportunities.

eBay payments unit PayPal has for a long time claimed it is not a competitor to banks. Now eBay is making similar strongly worded claims about not competing with retailers.

PayPal spokesperson Adrian Christie said retailers had to ask whether organisations like Amazon were service providers or retailers.

“These are the questions that retailers have to look at today as you look at who is your friend and who is your foe,” Christie said.

“The declaration we’re making today is we do not compete with retail and our objective is to partner because if we can turn more sales to Australian retailers we clip the ticket more often —that’s our business model.”

eBay and PayPal are betting on mobile as the channel that will help retailers succeed with the “omni-channel” strategy that all have been talking about, but few have actually delivered.

“Mobile devices are blurring the line between what we used to think of as on and offline commerce. These days it’s all just commerce,” said Sharkey.

She added that mobile customers were also more valuable, with a mobile purchase on average on an eBay app being twice the basket size as a purchase made online via the desktop.

“With point of sale technology you can bypass the register,” Sharkey said.

One example is Beat the Q, a PayPal partner that offers an app allowing consumers to order and pay for their coffee before they arrive at the café.

“Payments traditionally get in the way of what you want to do,” said Jeff Clementz, managing director of PayPal Australia.

“With Beat the Q payment preferences are already stored, a customer orders their coffee and the application sends a message to the point of sale machine.”

eBay and PayPal are also seeking to leverage the massive amount of data they process to help retailers that might struggle to do it alone.

“I don’t think if you’re a Country Road the conversation around big data is a conversation that you’ve probably got the resources to fulfill,” said Christie.

In the US Magento is piloting a service that analyses eBay and PayPal consumer transaction data to provide merchants with recommendations such as the types of new products to offer, or pricing and loyalty campaigns based on consumer behaviour.

While big on loyalty campaigns, PayPal and eBay are wary of the potential for retailers to go too far with differentiated pricing.

“In regards to pricing differentiation based on IP address and postcode and geolocation and big brother I think we should all watch out for those things,” Christie said.

“I think the idea is to have a fair marketplace.”

Christie said the idea with a retailer that uses Magento would be to enable pricing changes to be reflected across multiple sites.

“You’ve changed a price point in the afternoon, does that mean you’ve got to get staff to change a price point across the 30 different locations that product might be listed?

"That shouldn’t be how it works, you should change a price point once and then that price point on eBay now represents what you’ve got on your home site and also wherever you’re listing your merchandise in other places.”

Copyright © iTnews.com.au . All rights reserved.


eBay targets retailers in bid to become IT partner
 
 
 
Top Stories
Frugality as a service: the Amazon story
Behind the scenes, Amazon Web Services is one lean machine.
 
Negotiating with the cloud email megavendors
[Blog post] Lessons from Woolworths’ mammoth migration.
 
Qld govt to move up to 149k staff onto Office 365
Australia's largest deployment, outside of the universities.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...

Latest VideosSee all videos »

The great data centre opportunity on Australia's doorstep
The great data centre opportunity on Australia's doorstep
Scott Noteboom, CEO of LitBit speaking at The Australian Data Centre Strategy Summit 2014 in the Gold Coast, Queensland, Australia. http://bit.ly/1qpxVfV Scott Noteboom is a data centre engineer who led builds for Apple and Yahoo in the earliest days of the cloud, and who now eyes Asia as the next big opportunity. Read more: http://www.itnews.com.au/News/372482,how-do-we-serve-three-billion-new-internet-users.aspx#ixzz2yNLmMG5C
Interview: Karl Maftoum, CIO, ACMA
Interview: Karl Maftoum, CIO, ACMA
To COTS or not to COTS? iTnews asks Karl Maftoum, CIO of the ACMA, at the CIO Strategy Summit.
Susan Sly: What is the Role of the CIO?
Susan Sly: What is the Role of the CIO?
AEMO chief information officer Susan Sly calls for more collaboration among Australia's technology leaders at the CIO Strategy Summit.
Meet the 2014 Finance CIO of the Year
Meet the 2014 Finance CIO of the Year
Credit Union Australia's David Gee awarded Finance CIO of the Year at the iTnews Benchmark Awards.
Meet the 2014 Retail CIO of the Year
Meet the 2014 Retail CIO of the Year
Damon Rees named Retail CIO of the Year at the iTnews Benchmark Awards for his work at Woolworths.
Robyn Elliott named the 2014 Utilities CIO of the Year
Robyn Elliott named the 2014 Utilities CIO of the Year
Acting Foxtel CIO David Marks accepts an iTnews Benchmark Award on behalf of Robyn Elliott.
Meet the 2014 Industrial CIO of the Year
Meet the 2014 Industrial CIO of the Year
Sanjay Mehta named Industrial CIO of the Year at the iTnews Benchmark Awards for his work at ConocoPhillips.
Meet the 2014 Healthcare CIO of the Year
Meet the 2014 Healthcare CIO of the Year
Greg Wells named Healthcare CIO of the Year at the iTnews Benchmark Awards for his work at NSW Health.
Meet the 2014 Education CIO of the Year
Meet the 2014 Education CIO of the Year
William Confalonieri named Healthcare CIO of the Year at the iTnews Benchmark Awards for his work at Deakin University.
Meet the 2014 Government CIO of the Year
Meet the 2014 Government CIO of the Year
David Johnson named Government CIO of the Year at the iTnews Benchmark Awards for his work at the Queensland Police Service.
Q and A: Coalition Broadband Policy
Q and A: Coalition Broadband Policy
Malcolm Turnbull and Tony Abbott discuss the Coalition's broadband policy with the press.
AFP scalps hacker 'leader' inside Australia's IT ranks.
AFP scalps hacker 'leader' inside Australia's IT ranks.
The Australian Federal Police have arrested a Sydney-based IT security professional for hacking a government website.
NBN Petition Delivered To Turnbull's Office
NBN Petition Delivered To Turnbull's Office
UTS CIO: IT teams of the future
UTS CIO: IT teams of the future
UTS CIO Chrissy Burns talks data.
New UTS Building: the IT within
New UTS Building: the IT within
The IT behind tomorrow's universities.
iTnews' NBN Panel
iTnews' NBN Panel
Is your enterprise NBN-ready?
Introducing iTnews Labs
Introducing iTnews Labs
See a timelapse of the iTnews labs being unboxed, set up and switched on! iTnews will produce independent testing of the latest enterprise software to hit the market after installing a purpose-built test lab in Sydney. Watch the installation of two DL380p servers, two HP StoreVirtual 4330 storage arrays and two HP ProCurve 2920 switches.
The True Cost of BYOD
The True Cost of BYOD
iTnews' Brett Winterford gives attendees of the first 'Touch Tomorrow' event in Brisbane a brief look at his research into enterprise mobility. What are the use cases and how can they be quantified? What price should you expect to pay for securing mobile access to corporate applications? What's coming around the corner?
Ghost clouds
Ghost clouds
ACMA chair Chris Chapman says there is uncertainty over whether certain classes of cloud service providers are caught by regulations.
Was the Snowden leak inevitable?
Was the Snowden leak inevitable?
Privacy experts David Vaile (UNSW Cyberspace Law and Policy Centre) and Craig Scroggie (CEO, NextDC) claim they were not surprised by the Snowden leaks about the NSA's PRISM program.
Latest Comments
Polls
Which bank is most likely to suffer an RBS-style meltdown?





   |   View results
ANZ
  20%
 
Bankwest
  9%
 
CommBank
  11%
 
National Australia Bank
  17%
 
Suncorp
  24%
 
Westpac
  19%
TOTAL VOTES: 1440

Vote