IT and consumer electronics reseller Harris Technology saw a sizable boost from the ongoing online retail boom in Australia, particularly with Amazon and eBay.
In the 12 months ended 30 June 2021, Harris reported revenue of $41.8 million, up 206 percent year over year from $13.6 million, and net profit after tax of $1.75 million, up 73.6 percent from $1 million last year.
The result comes as the ASX-listed company completes its three-year transition away from traditional retail and distribution to become a pure-play online retailer. Harris said it is currently the number one marketplace reseller on Amazon Australia and has hit $1 million in monthly sales on eBay Australia.
In the announcement, Harris said its decision to pivot to pure-play online was to become more agile and respond quickly to consumer trends, including the addition of personal protective equipment (PPE) and gaming products to its offerings.
“This excellent result was achieved despite increased competition in both the tech retail and online retail spaces which had an impact on margins, but as a pure-play online retailer,” chief executive Garrison Huang said.
“It was pleasing that Harris Technology was able to maintain margins circa 18 percent with a rapidly growing presence across all major eCommerce marketplaces.”
The company credited the increased sales to the expansion outside of the traditional IT and consumer electronics sector, and said it plans to expand that range further into FY2022, as well as its entry into private label goods.
Harris also said the current lockdowns in Sydney and Melbourne are providing similar tailwinds to the online retail sector seen during the early stages of the pandemic in 2020.
“Going forward, Harris Technology is uniquely positioned to take advantage of the strong and
sustained trend towards online shopping,” Huang said.
“We continue to benefit from new online traffic from marketing programs launched by platform owners and should continue to do so with planned expansion into new product categories.”
Looking ahead, Harris said it is set to launch a new website to try and capture more organic search engine traffic while optimising backend logistics in a bid to improve online marketing and a better shopping experience for customers.
Another upgrade will be for its warehouse facilities, which is planned to start in November 2021, to consolidate 4 small warehouses into 1 large complex to improve operating logistics and cut down on rental costs.
The company invested in $10.7 million worth of inventory as of 30 June, in a bid to get ahead of the ongoing global chipset shortage and become well positioned to turn over more products in the coming months.