Why XchangeIT Should Be Free
Now, many are starting to agree with me that XChangeIT should be free for the users of this product. I said it for years and have not changed my mind. We are pleased to have been involved with XChangeIT from the start, even before it began processing Gordon and Gotch invoices in newsagencies electronically. Over the years, we have seen it deliver real value to the magazine channel, but that was years ago. The current charging model no longer stacks up, and the industry should review how this essential service is priced. The system that I have studied the most is the Ariba used by Coles, and I doubt the magazine companies charge Coles for their electronic invoices. Ariba is free to use.
Key Takeaways
- XChangeIT is an essential data exchange service
- Electronic invoicing is now standard practice across retail
- Newsagents fund a system that also benefits distributors and suppliers through cleaner data and lower admin costs.
- Fairness becomes a bigger issue when a retailer has no practical alternative to the service.
- Value-based pricing is easier to defend when a platform offers premium analytics, benchmarking, or decision tools.
- Industry review is warranted when essential infrastructure operates as a monopoly.
- Newsagents should push for transparent pricing, clearer value delivery, and independent review of access arrangements.
What Is XChangeIT and How Does It Work?
XChangeIT is the data exchange platform widely used in the Australian magazine supply chain to send invoices, return information, and other supply-related data between publishers, distributors, and retailers. First, it reduces manual data entry and supports faster, more consistent administration. For example, instead of a store owner manually entering 50 magazine titles into their inventory, they can use our POS System to populate the delivery data automatically.
Moreover, that operational role is real and worth acknowledging. The issue here is not whether XChangeIT is worth it, but whether retailers should still pay for access to a service that is now a standard business practice.
The first question many will ask is whether the charging is legal. The answer, I think, is YES, but that is not the point here. I am talking of fairness.
https://www.possolutions.com.au/blog/xchangeit-is-it-a-fair-and-reasona…
Why Are Newsagents Charged for XChangeIT Access?
Newsagents are charged for access because the platform was historically introduced as a specialised, premium technology solution for a complex problem. Then it was premium technology that was unusual, complex, and commercially distinctive.
Today, electronic invoicing and automated data exchange are standard operating tools across retail. Anyone with a simple accounting program, say like MYOB, for about eleven dollars a month can send invoices electronically. Our POS Systems allows our users to send electronic invoices free.
Is XChangeIT Now Essential Industry Infrastructure?
As an essential industry infrastructure, all market participants must use it to trade efficiently. Across the many retail sectors I have worked in, I have not seen suppliers routinely charge stores for receiving a standard invoice. Do you charge your customers to receive your invoices electronically?
Then there is another issue. Magazine sellers are not just receiving data through XChangeIT; they are also sending information to the suppliers and distributors. Distributors benefit from cleaner returns, fewer processing errors, and more efficient administration. Yet the smallest business in the chain, the magazine seller, is being asked to bear the cost.
When Is a Separate Platform Fee Justified?
This separate platform fee would now be justified if XChangeIT delivered what it was originally promising to do: measurable, premium capabilities that go beyond standard transaction processing, say if XChangeIT delivered advanced analytics, stronger reporting, benchmarking, and practical marketing tools beyond basic transaction processing. I do not see anything happening here. Years ago, they started these projects. I can remember them collecting that data for mathematical studies, but nothing came of it despite some interesting results.
The Fair Position for Newsagents
XChangeIT is playing an essential role in the magazine channel, and that contribution should be recognised. Newsagents should be asking for transparent pricing, clearer value delivery, and an independent review. You can read more here on the fairiness of XChangeIT. I am glad now others are agreeing with me now.
Written by:
Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.
