A stir of excitement has seen the Kogan.com Limited [ASX:KGN] share price pushed higher this morning, up 7.28%, to trade at $3.84.
The bump in share price today comes as the online retail and services business watches its share price tapper out after hitting its all-time high of $9.85, back in March last year — a one-year decline of 59.68%.
Kogan’s Marketplace launch
Kogan announced this morning it would take on the likes of Amazon via the launch of Kogan Marketplace.
The marketplace enables third-party traders to sell goods on Kogan.com, as they do on Amazon.com.au, Catch.com.au and eBay.
The company said that many leading retailers have already signed up to participate in the newly minted marketplace, boosting the number of products available to Kogan shoppers to more than 100,000.
In a statement released this morning, Kogan listed household and designer brands such as Microsoft, Breville, Lego, Fisher-Price, Paw Patrol, SodaStream, Gillette, Gucci and Philips, as those amongst a growing group of retails listed on the site.
Products listed on the Kogan Marketplace will be eligible for all the benefits Kogan.com customers enjoy, including interest-free financing and earning Qantas Frequent Flyer points.
Customers will also be able use their existing Qantas Points or Citi Reward Points, to purchase through the Kogan Marketplace.
How the move payoffs for Kogan’s share price
While the marketplace launch does follow weak earnings in the December half of last year, following beefed up marketing and warehouse spending, the move is likely to compliment Kogan’s growing brand power.
In the 12 months to December 2018, the company achieved 32.2% growth in active users.
As part of its strategy, Kogan is seeking to continually add more brands and broaden its product selection — an attempt to become more competitive on pricing.
Currently, 72% of its traffic comes from brand drivers. This means people actively searching for a particular brand or product.
Besides being free marketing, a broader brand variety should see more traffic directed towards the company’s sites.
The other upside of increased traffic being spurred on by its new marketplace, is the increased exposure its higher-margin exclusive brands and services receive.
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