• Ruslan Kogan. Image credit: kogan.com
    Ruslan Kogan. Image credit: kogan.com
Close×

Internet millionaire Ruslan Kogan believes Amazon will accelerate eCommerce growth in Australia.

The revelations came as Kogan.com reported revenue growth of 36.2% for the year to October 31.

The etailer also saw pro-forma EBITA grow 58.3% and a gross margin increase of 18.4%.

"This represents an increase in the year-to-date growth trend, following a strong trading performance in October," he said.

"We are very excited about the trajectory of the business and the growth opportunities available to us."

Kogan said competitors such as Amazon will only accelerate etail growth in Australia.

“There’s no doubt that the way people buy goods and services in Australia has undergone significant change in the past decade.

"It’s a wave of change that continues with great pace and we are proud to have played a key role in it.

"Saying that, we operate in a dynamic market and we expect that wave of change to accelerate as commerce in Australia undergoes structural change.

“Online retail is still under-represented in Australia compared to other major developed economies.

"Today online retail represents about 7.5% of the total Aussie retail market. For economies with a large marketplace player (such as an Amazon or an Alibaba) online retail penetration is closer to 20%.

“While Amazon is already a major force in Australia (it’s a top 25 site) the launch of a local presence will undoubtedly bring more shoppers online.

“With traditional channels facing continued consolidation, the path to market in Australia is begging for diversification.

"We expect the evolution of the local retail market to drive some significant behavioural shifts – causing customers to rethink how they buy and suppliers to rethink how they distribute their inventory.

“For Kogan.com, this represents an opportunity to drive incremental sales through additional platforms and channels - just as we benefit from eBay and TradeMe as a platform for Kogan’s suite of Exclusive Brands.

“With a brand that has built a reputation for price leadership through digital efficiency, Kogan.com is well placed to continue to grow market share.”

comments powered by Disqus