In November 2000 Australian online retailers, buy.com.au and dstore, may find a merger the best way to ensure their viability.

The industry speculation regarding this merger comes at a time when dstore is continuing to burn large amounts of cash, while Buy.com.au's parent, buy.com of the United States, is struggling.

Over the Christmas period of 1999 Australia's online retailers spent large amounts on marketing to secure plenty of orders, which they struggled to fulfil in time. A hostile sharemarket has added to their difficulties.