Online retailer Kogan hits first one-day $1m sales mark
Australian electronics retailer Kogan has shown that online shopping is on the rise after recording its first $1 million sales day – just six years after CEO Ruslan Kogan started the business in his parents’ garage.
The idea of buying consumer electronics products directly from the manufacturer online was still a relatively new concept when Kogan opened its virtual doors in 2006.
But now online shopping is truly thriving and Kogan’s success proves customers are embracing the concept and saving money at the same time.
Kogan broke the $1m sales target for the first time yesterday – July 31.
“We’ve just had our first $1m day of sales, and the entire Kogan team is tremendously proud,” says CEO Ruslan Kogan.
“It took us 6 years of very hard work to get here.
“We actually sold 3 times more in one day – yesterday – than in our entire first year of trading.”
Kogan’s business model is to offer greatly reduced prices by shipping products directly to the customer from the factory.
Cutting out the overheads that come with the other layers of the transaction including Australian distributors and actual retail stores – has resulted in significant savings.
And the fact Kogan is able to achieve $1m sales in a single day is proof that business model is a hit.
Kogan sells his own branded products like TVs, tablets and digital radios and also sells popular products including Apple’s iPad, Canon DSLR cameras and Samsung’s Galaxy S III smartphone at reduced prices.