Published by eBay Inc. and based on ground-breaking research, this report reveals that the new retail world represents, increasingly, a convergence of online and “traditional” business. Moreover the online world represented by eBay is “flat” and seamlessly links Australia to international markets, because trade conducted via eBay is subject to fewer frictions than traditional trade. For Australia, the trade-reducing effect of geographic distance, a proxy for a wide variety of trade costs, has half the impact on eBay compared to traditional cross-border commerce. The report examines, in detail, the significance of eBay sellers for the Australian economy, and how eBay as a platform grows exports.