In a bid to take on U.S. online giants Amazon and Ebay, Australian e-commerce company Kogan has launched its online marketplace, allowing third-party sellers to trade on Kogan.com.
Dubbed ‘Kogan Marketplace’, the site is designed to draw traders and buyers onto the platform, much like Amazon and Ebay, a move that will see Kogan increase its product offerings and categories to more than 100,000 items, without needing to buy more inventory.
According to Kogan, several leading retailers and brands have already signed up including Microsoft, Breville, Lego, Fisher-Price, Paw Patrol, SodaStream, Gillette, Gucci and Philips.
Australian e-commerce Catch Group and its catch.com.au site have successfully executed the marketplace move in recent months. With Australians having greater access to online brands and products from vendors around the globe, Kogan felt it had to ramp up its competitiveness in the Australian online retail landscape, and use affordability as its point of difference.
“Our mission is to make the most in-demand products and services more affordable for all Australians,” said Kogan.com director of marketplace, Lazar Monin.
“The launch of Kogan Marketplace is a win-win-win for everyone. Retailers on the Kogan Marketplace Platform will get market-leading infrastructure and the ability to offer their goods to the Kogan Community. With today’s launch, there are now over 100,000 products available to purchase on Kogan.com — meaning customers have more choice than ever before.”
The news of Kogan’s marketplace follows weaker-than-expected earnings at Kogan.com in the December half.
Net profit fell 11 per cent to $7.4 million, hurt by investments in marketing, warehouses and inventory. Sales growth came to 10.6 per cent, compared with 46 per cent in the December-half 2018, and impacted by changes to the GST regime last July for online orders.