eBay and Etsy choose Melbourne
|7 June 2012 |
|Internet auction and sales site eBay Australia has opened an office in Melbourne to support advertisers and increase its rising seller base.|
|eBay's arrival in Melbourne comes three weeks after New York-based online retailer Etsy announced the opening of a Melbourne showroom, as it homes in on the Australian market.|
Etsy, a global marketplace for handmade and vintage goods, and arts and crafts materials, was launched in 2005 and now attracts around 40 million consumers a month.
The eBay decision to open up shop in Melbourne was prompted by a rise of more than 80 new Victorian clients in the past year and to meet the Etsy challenge.
Ebay Melbourne will be managed by Adam Krass, eBay Australia and New Zealand's state manager for Victoria, South Australia and WA who says a local office will enable the company to better serve the immediate needs of Melbourne clients.
"In the past year, a large number of new clients in the Melbourne market have utilised the eBay platform. We look forward to helping our partners continue to make the most of the substantial amount of data available online, and channelling that in a meaningful way through Geotribes," Krass said in a statement.
Geotribes, which Krass described as a "market-leading geo-demographic profiling system", is a new resource for advertisers on eBay. It segments the population by social resources and needs. Australian marketers can target advertisements online based on social economic status, life stage and needs, thus capitalising on the $30 billion eCommerce market.
Etsy recently raised $40 million from venture capital firms including Index Ventures, Accel Partners and Union Square Ventures, which have backed the likes of Facebook and Twitter.
According to Etsy's community manager for Australia, Kirsteene Phelan, Australia is one of Etsy's most important international markets, suggesting eBay could have some stiff competition.
About 30% of Etsy sales from Australian sellers are to local buyers, with the remaining 70% of sales going to buyers overseas.
The site has 875,000 active sellers who grossed more than $US525 million in sales last year. Australian traders and consumers accounted for about 3% of this figure. But sales rose in the Australian region by nearly 75 per cent last year.