Online retailer Kogan.com has seen its revenue take a slight hit, sliding 5.3 per cent to $219.5 million in the first half of FY20 ending December 31.
The online retailer pointed out the decline was due to the launch of Kogan Marketplace, where it only recognises seller fees as revenue.
Net profit for Kogan.com was up 20.8 per cent to $49.9 million and adjusted earnings before tax (EBITDA) was up 35.2 per cent to $18.2 million.
This is the first full-half contribution from Kogan Marketplace, which founder and CEO, Ruslan Kogan has previously touted as a transition period for the e-commerce company towards becoming an ‘inventory light platform’.
“As we progress our investment in the Kogan Marketplace platform, it will enable our Business to achieve ongoing growth without the ongoing investment in inventory," Kogan said.
As of 31 December, Kogan had $94.7 million in inventory, which was comprised of $13.1 million of inventory in transit and $81.6 million in warehouse. More than 98 per cent of inventory in warehouse was less than a year old, the company said.
“During the period we delivered several game changing projects including the launch of four new business units whilst also growing Kogan Marketplace and expanding our Kogan First subscriber base," Kogan said.
“While Kogan First is still relatively new, we’ve already funded over $1M of benefits to Kogan First subscribers - these benefits include free shipping, free upgrades to express shipping and exclusive discounts. All of these business units provide new avenues to delight our customers and further expand our loyal Kogan Community.”