Kogan Marketplace seller fees drive retailer's revenue boost

Kogan.com’s third-party seller platform Kogan Marketplace has helped drive the Australian e-commerce giant’s revenue growth in FY2021.

In an ASX announcement released today, the company said Kogan Marketplace has grown 79 percent year over year, contributing to $1.18 billion in gross sales during the year ended 30 June 2021. Compared to last year, gross sales are up 52.7 percent from $772.3 million.

Kogan does not release specific numbers for Kogan Marketplace, but groups its gross transaction values together with those from Kogan Retail and “New Verticals” as “gross sales”. Revenue from Kogan Marketplace is taken from seller fees only.

The company said the platform “continues to resonate” with sellers, with more coming on board during the period, with a strong pipeline of interested sellers ready to be onboarded.

“The exceptional growth of Kogan Marketplace has led to a period of transition for the business. We are continually improving our proprietary marketplace platform which enables the company to achieve ongoing growth without a corresponding investment in inventory,” the announcement read.

“The growth of Kogan Marketplace means that customers have more choice than ever, and it was launched in New Zealand prior to the financial year end.”

Overall revenue for FY2021 was $780.7 million, up 56.8 percent from 2020. Profit after tax declined 86.8 percent to $3.5 million, down from $26.8 million due to expenses from compensation, costs from last year’s Mighty Ape acquisition, logistics demurrage charges and donations of personal protective equipment to charities.

Kogan.com chief executive Ruslan Kogan said, “Over the past 12 months, Kogan.com turned 15 years young, surpassed $1 billion in gross sales for the first time ever, surged past three million active customers, had record-breaking Black Friday sales, and made our largest ever acquisition to accelerate our expansion into New Zealand.”

“It’s been a challenging year for so many people around the country. I’m proud that our team remained focused through difficult COVID-impacted operating conditions and found ways to support our customers when they needed our help most.”

Kogan added that the company is set to roll out new projects, including membership rewards, improved delivery solutions and further enhancements to the online shopping platform.

“Over the past 18 months we have witnessed a massive swing towards the eCommerce retail revolution, one Kogan.com has been ready and waiting for, for well over a decade,” he added.

“We look forward to continuing our quest to delight our customers by making the most in demand products and services more affordable and accessible.”