E-tailer dstore today announced revenue growth of 1600 per cent for the last six months, attributing the record result to surging consumer demand for e-commerce.
Revenue growth for the period February to August 2000 hit $A25 million, according to David Gold, dstore's CEO.
Gross margins increased by more than 50 per cent in the last quarter, owing to increasing scale and improved supplier relationships, a company statement read.
Stronger brand recognition improved dstore's supply chain management, Gold said.
"The last six months have proved conclusively that there is enormous latent demand for online retail in the Australian market," he said. dstore's Internet clients were not deterred by recent reports than 25 per cent of online shopping through credit card purchases were fraudulent. Conversion rates for its online customers more than doubled over the last six months, the e-tailer told ARN.dstore.com.au also claims it is the most popular local business to consumer (B2C) site as measured by Internet research firms Red Sheriff, Media Metrix and Sinewave.
Gold maintained dstore.com.au experienced a 2 per cent fraudulent purchasing rate over the last year.
"We have extensive measures and systems - which I can't give away because people will abuse that (information) - to assess any suspicious orders," he said, citing risk criteria such as customer geographics, transaction value and mix of products.dstore.com.au customers foot a 0.5 per cent charge in their purchase for online fraud assessment - a cut which went to banks, said Gold.
While the e-tailer conceded 1600 per cent annual growth was "not sustainable", it claimed growth rates of 100 per cent per year would continue for the next five years.dstore will pursue an "Internet first, not Internet only" multi-channel retail strategy over the next six months to achieve the annual growth target, Gold said.
"Physical retail still remains the most used channel," he said. "While physical stores enjoy only incremental growth rates, they will provide dstore with an important strategic advantage over more narrowly focused retail groups.