Social media is combining with e-commerce on eBay.

Online auction site eBay is using social media tools to make it easier for people to club together to order a parcel delivery.

eBay Group Gifts leverages social networking methods to allow friends and family to contribute separately to buy a larger present for someone.

The application, which is available both on eBay.com and Facebook, utilises the auction site's PayPal platform.

Amit Menipaz, who led the scheme's development, said it "was designed to address a real world need for people who want to join together to give a bigger and better gift for someone they care about".

He went to explain that the application defines "the concept of group gifting online by leveraging deep integration with eBay, Paypal and Facebook", adding that this provides a "simple and friendly solution".

The news comes off the back of strong third quarter results for the firm, with revenue up by ten per cent, excluding its Skype offering.

Posted by Rob Elliott

Article Added: 03/11/2010 09:12:48