Kogan.com just opened up its marketplace to just about any business that has something to sell
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Online retailer Kogan.com (ASX:KGN) has launched yet another new venture in a bid to lift its languishing share price.
The Kogan.com Marketplace was announced to the market this morning. It’s a platform allowing third parties to list its products on Kogan.com and will compete with the likes of behemoths Amazon and eBay.
And shareholders loved the idea, sending the price up as much as 11 per cent to $3.96.
But the broader picture is not quite as pretty — Kogan.com shares have lost 61 per cent of their value in the past year. The company had a market cap of $923 million this time last year, but that has plummeted into the small cap range of late, currently sitting at $334 million and hitting as low as $245 million.
That is despite a consistent stream of new product launches in 2018 in an attempt to turn around its fortunes.
It started in January with the launch of Kogan Life Insurance, a partnership with Greenstone Financial Services, to offer life and funeral insurance policies to Kogan.com customers.
That was followed in February by Kogan Health, under the insurance brand, and then by two more launches in April, one being Kogan Internet, providing broadband and NBN services in conjunction with Vodafone, and the other being Kogan Pet Insurance.
In June came an entry into the whitegoods and kitchen appliance markets and the launch of Kogan Mobile in New Zealand.
In August it reported soaring full-year profits, attributing that to its increased customer offering.
September saw the launch of Kogan Money, meaning it could dole out home loans.
So will the Marketplace, in addition to Kogan Retail, Kogan Mobile, Kogan Internet, Kogan Health, Kogan Insurance, Kogan Money, Kogan Super, Kogan Money Credit Card and Kogan Travel, be the thing that turns the share price around? It remains to be seen, but Lazar Monin, the director of Kogan Marketplace, is buoyant.
“The launch of Kogan Marketplace is a win-win-win for everyone,” he said. It certainly looks easy:
“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.
“Our mission is to make the most in-demand products and services more affordable for all Australians. We’re obsessed with creating a great experience at Kogan.com for our customers and sellers alike.”
In the meantime it continues to make plenty of money, with half-year revenue rising 11 per cent to $232 million, though half-year profit took an 11 per cent hit to $7.4 million.