Kogan.com founder Ruslan Kogan has increased the price of its subscription program made up of its most loyal and repeat customers despite the e-commerce company’s profit of $10.2 million in the first half of the financial year.
Shares in the online retail platform advanced on Wednesday after it confirmed it had successfully cut inventories.
The e-commerce marketplace has been forced to make steep price cuts and sell some products at a loss as the COVID rush wears off.
The sale of the furniture operator to Kogan was hailed as a win for existing customers,but not everyone will get their orders after the administration process is complete.
Household spending jumped 11.4 per cent in the year to November 2022,but spending on furniture and home equipment slumped.
The online retail pioneer is branching out further into the world of furniture.
Trading updates from major retailers including Harvey Norman suggest spending on home goods is still robust.
The online retail pioneer will chase frugal shoppers as it looks to cut costs after mistakes with product inventory tipped it into a full-year loss.
Ruslan Kogan says his online retail group has cleared the decks of excess inventory and will thrive in a tough consumer environment.
Ruslan Kogan’s online retailer has come a long way since it was first founded in a garage back in 2006.
Shares in online marketplace Kogan have sunk to three-year lows after the retailer reported a downbeat start to the new financial year.