Australian Newsagency Blog

A blog on issues affecting Australia's newsagents, media and small business generally.

Is it time XchangeIT was free to newsagents?

Mark Fletcher
August 28th, 2020 · 6 Comments

Through my POS software company I get to connect with suppliers across 11 specialty retail channels. From what I see, the cost borne by newsagents to access electronic invoices is higher than any other channel. It is a commercial disadvantage for newsagents in my view.

As an owner of newsagencies since February 1996, as the owner of a software company serving newsagents since 1981 and as the owner of a software company serving other retail channels …

  • Access to XchangeIT should be free for all newsagents.
  • Penalties relating to data should be removed since newsagents see little evidence of the data supplied serving their commercial needs.
  • The time cost imposed on newsagents to manage data for a low margin category should be cut. This can be done by introducing a 2020 approach to EDI.

XchangeIT roots date back 30 years ago as a different product, quite removed from what we have today. While the world has moved on, XchangeIT has not. It does not serve newsagents well.

Now, before folks at XchangeIT clutch their chests crestfallen by what I have written, this is not personal. The world has changed. EDI has changed. What is imposed on newsagents through the XchangeIT, supplier controlled, platform is out of date, it makes newsagents less competitive.

These days, we should be spending less and less time on back office tasks, especially for meagre margin products such as magazines.


Category: magazines · Social responsibility

6 responses so far ↓

  • 1 Peter // Aug 28, 2020 at 1:30 PM

    Certainly would be a good outcome. Can’t see it happening though, what do you get for free anytime, let alone during these crazy times. Just look at Ovato’s lovely set of figures above. Might not have any magazines to invoice the way they’re going.


  • 2 Glenn // Aug 28, 2020 at 4:52 PM

    XchangeIT should have been free for years. I believe that the benefits to newsagents are secondary considerations to any benefits to the distributors. It is just another tool in a master / servant relationship used to enforce compliance with outdated practices in an unviable category.

    That said, for me the $500 per annum fee is considered against the cost and time savings it brings me, and for this reason we will continue to pay the fee and use the service.


  • 3 David // Aug 31, 2020 at 3:14 PM

    Yes, of course it should be free. I bet the shareholders are sitting on a nice profit from us.


  • 4 Amanda // Sep 9, 2020 at 7:37 PM

    It would be great if more gift suppliers utilised it.

    What would it cost a wholesaler to supply DDO files rather than just a PDF invoice?


  • 5 Peter // Sep 9, 2020 at 8:24 PM

    Amanda some suppliers do provide DD2 files (I think that’s their name) and these you can import direct from a file emailed to use as an attachment which you save in the format is was sent to on hard disk and then import it into retailer with appropriate functions and it appears in the Invoice Arrivals Selection with all the other files that came via Xchangit.

    I will strand by comments I have passed here in the past about Xchangit, It is AN UNNECESSARY OVERHEAD WHICH ARE FORCED TO USE.


  • 6 Mark Fletcher // Sep 9, 2020 at 8:57 PM

    Yes, tons of suppliers provide DDO files without the need to go through XchangeiT.


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