Online retailer Kogan.com (ASX: KGN) expects to add a host of new retail brands to its books following the launch of a marketplace platform today allowing for direct sales to customers.
Kogan Marketplace has been dubbed a “win-win-win” move by the company, citing it as an opportunity for businesses to extend their reach by tapping into Kogan’s active customer base of more than 1.5 million.
“[This is] a win for Kogan.com customers as they’ll have more choice and competition than ever, it’s a win for Australian businesses as they get access to millions of customers to grow their business, and it’s a win for the Kogan.com business,” the company said.
Brands such Microsoft, Breville, Fisher-Price and Phillips are already available for sale through the marketplace and other leading retailers are expected to follow suit.
Sellers on Kogan Marketplace will have access to Kogan.com’s marketing and customer support, payment gateways, customer support, and seamless integration with backend operations.
Customers will be able to take advantage of current initiatives such as interest-free finance options and the ability to earn credit card and airline reward points.
They will also be able to use existing reward points to purchase selected products.
Positive sales experience
Director of Marketplace Lazar Monin said Kogan.com is “obsessed” with creating a positive experience for sellers and customers.
“Our mission is to make the most in-demand products and services more affordable for all Australians,” he said.
“The launch of Kogan Marketplace is a win for everyone – retailers will get market-leading infrastructure and the ability to offer their goods to the Kogan community and with over 100,000 products available, customers will have more choice than ever before.”
The launch of Kogan Marketplace is hoped to contribute to the upward trajectory of Kogan.com’s financial performance, with the company last month posting a gross transaction value of $277.3 million for the first half of the 2019 financial year.
The figures were on the back of record trading during the peak 2018 Christmas season and represent a 12.9% increase on the previous corresponding period.
Revenue for the period was also up on the prior year by 10.6% to $231.8 million, while gross profit was up 10.8% to $45.1 million.
Founder and chief executive officer Ruslan Kogan said his retail business currently represents around 2% of the Australian e-commerce market.
“We have continued [to invest] in our improved customer offering and we have a nationwide logistics network enabling us to delight customers all over Australia with faster and more cost-efficient delivery options,” he said.
“We now operate in more industries than ever with a very compelling offer in each industry and we have continued to invest in our brand to drive a growing portfolio of businesses and improve the value proposition.”
At midday, shares in Kogan.com were up 6.16% to $3.79.