Retailer Kogan is pitching its online marketplace as a major growth market following a recent sales surge.
According to a market update, gross sales rose by 44 per cent between the first and second quarters of 2020 with Kogan touting its potential for “infinite growth without additional capital”.
Kogan first launched its online marketplace in March 2019 in an effort to boost sales and better compete with the likes of Amazon and eBay. The marketplace hosts products by vendors, distributors and retailers.
The publicly listed retailer’s founder and CEO Ruslan Kogan said the company is now “undergoing a period of transition to an e-commerce company that is no longer constrained”.
“In the long term, this creates huge benefits to both our customers and our shareholders as we build one of the major e-commerce marketplaces in Australia and New Zealand,” he added.
For the first half of the 2020 financial year ending 31 December, Kogan saw its sales before tax grow by more than 16 per cent, while gross profit grew by more than 9 per cent.
Other strong performers within its business included its Kogan Internet, which saw active customers grow by more than 340 per cent year-on-year as of 31 December, two years after it became a National Broadband Network (NBN) reseller.
Kogan Mobile Australia grew active customers more than 5 per cent in the same period.