Kogan saw a big boost to its revenues and profits in October thanks to contributions from its in-house brands and third-party reseller platform Kogan Marketplace.
Addressing shareholders at its annual general meeting (pdf) today, chief executive Ruslan Kogan said that Kogan Marketplace reached gross sales of $9 million in October 2019 alone, compared to around $25 million in gross sales for the whole of Q1 FY2020.
Kogan opened up the third-party reseller platform in March this year, allowing partners to sell their own wares on its online store, similar to Amazon.com and Ebay. In August, Kogan called the business a “transformational step,” as it allows the company to reduce its reliance on third-party brands and become more capital-light.
The online retailer also cited the growth in its Exclusive Brands product division, highlighting the 35 percent year-over-year growth it delivered in Q1 FY2020.
“Based on unaudited management accounts, we are happy to have delivered another month of strong year-on-year growth in gross sales and gross profit, while continuing our focus on running an efficient company with a low cost of doing business,” Kogan said.
“While the first four months of the financial year are exhibiting growth metrics, we know that the business end of the year is ahead of us with the Christmas trading period of November and December. These are usually the most important trading months of the year for us.”
Kogan is currently working to integrate Kogan Marketplace with eCommerce platforms like Shopify and Magento in a bid to bring in more sellers quicker.
The company also added a handful of testimonials from some of its resellers on the Kogan Marketplace home page:
"Kogan has been instrumental in us achieving growth." - Swann Communications
"We expanded market reach and overall business with Kogan." - LG Electronics
"We’ve been delighted with the results." - Micron Technology
Overall, the online retailer said gross profit had increased 22.9 percent year-over-year for the month of October alone due to “the continued strong performance” of Exclusive Brands and Kogan Marketplace, along with contributions from its advertising income.
Gross sales were also up 18.5 percent while operating costs were down 8.6 percent due to “efficiencies gained” with the operation of Kogan’s new proprietary marketing platform. Active customers also grew 13 percent year-over-year.