This morning Kogan.com Limited [ASX:KGN] launched its Kogan Marketplace platform, in a bid to compete with Amazon Australia.
It’s a move many online retailer companies are taking to help adapt to changing consumer behaviours. Many leading retailers (most have already signed up) will today start selling their products through Kogan’s Marketplace.
Much like Amazon.com.au, Catch.com.au and eBay, the marketplace gives third-party traders the ability to sell goods on Kogan.com. And it is the main driving force behind Kogan’s rising share price seen in today’s trading.
At the time of writing, Kogan’s share price is trading at $3.80, up 6.44%.
This kind of spike in share price after such a big announcement isn’t unusual for a stock such Kogan.com.
Ideally, shareholders want a stock with the best chance of rising gradually over time…
Over the last five years, shares have been swinging higher but then fell off in the last six months.
But if it was as easy as seeing whether a stock share price rises or falls – anyone could be a market expert.
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What makes this announcement important is the steps investors are seeing made by a company that was already emerged in online retailer culture – as even Kogan was forced alter its business model.
Why adapting to changing consumer behaviour is important for Kogan
In the wild, if an animal cannot adapt fast enough to its environment it, put frankly, dies. This the reality for many larger businesses, in the face of an ever-growing interface of online consumption.
The Marketplace’s selling point according to Kogan, is in its benefits to costumers and sellers alike.
‘The launch of Kogan Marketplace is a 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.’
‘We’re obsessed with creating a great experience at Kogan.com for our customers and sellers alike’
Brands such as, Microsoft, Breville, Lego, Fisher-Price, Paw Patrol, SodaStream, Gillette, Gucci and Philips have already signed up to sell their products through the Kogan.com Marketplace.
Products listed on the Kogan Marketplace are given all the benefits Kogan.com customers currently enjoy, including interest-free financing and earning Qantas Frequent Flyer points.
Customers are also be able use their existing Qantas Points or Citi Reward Points, to purchase through the Kogan Marketplace.
Kogan’s Marketplace potential
Kogan.com was plagued by weaker than expected earnings in the December half, but the company is hoping the 100,000 plus boost in products will help raise sales, and therefore build Kogan’s share value.
Of course, whether this will positively impact the business is really at the mercy of consumers. It is easy to get carried away with idea of a platform or virtual shopping centre, which caters something for everyone (especially for holiday period’s like Christmas).
But, with the participation of retailers, consumers and sellers’ investors could very well look forward to continued strength in Kogan’s share price – granted its marketplace becomes the beacon for integrated-online shopping destination.
For Money Morning
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