Kogan.com’s ‘E-commerce Revolution’, Sales Up 39.3% In FY20
Kogan.com’s sales increased by 39.3% in FY20 to hit $768.9 million, with gross profit growing at a similar rate of 39.6%, to $126.5 million.
The e-commerce retailer was also able to expand its active customer base by 35.7% (2.18 million customers as of end-June 2020) as consumers moved online during the COVID-19 pandemic.
“There is a retail revolution taking place as more and more shoppers learn about the benefits of eCommerce. We’re seeing record numbers of first-time customers, who then go on to make repeat purchases at a 40% faster pace than previously,” said Ruslan Kogan, Founder and CEO of Kogan.com.
“Once someone discovers the benefits of online shopping, I struggle to see why they would ever go back to the old way of doing things. After almost 15 years of preparation, the revolution occurring in retail represents a significant opportunity for Kogan.com.”
Kogan Marketplace is fast emerging as a key growth area for the company. In the second half of FY20 Kogan Marketplace’s gross sales increased by 71.2%, and grew the number of sellers on the platform significantly.
“We are continually improving our proprietary marketplace platform which enables the Business to achieve ongoing growth without a corresponding investment in inventory,” the company wrote.
In addition, Kogan Internet customers grew by 90.9%, while Kogan Mobile contributed over 10% to total gross profit.
Despite these strong results, Kogan has not provided guidance for FY21.