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Repeat business has been the driving force behind online marketplace MyDeal.com.au (ASX: MYD), which announced today it has surpassed one million active shoppers.
An e-commerce destination for home and lifestyle products, the Melbourne-based company reported returning buyers accounted for 61 per cent of all online transactions in January.
MyDeal’s customer loyalty has seen it top other e-commerce retailers such as Temple & Webster (ASX: TPW), which reported 906,000 active users in the second half of FY22.
“One million active users is a huge operational achievement and is a clear reflection of the strength of our expanding product range and focus on creating an online shopping experience that Australians’ love,” said MyDeal CEO Sean Senvirtne who featured in last year's Australia's Top 100 Young Entrepreneurs list.
“Not only is MyDeal attracting new customers, but our customers are shopping and spending more with us. We see this loyalty shine through in our app download numbers with over 400,000 total app downloads to date, after launching less than nine months ago.
“Reaching this number is a direct result of executing our strategic initiatives that have led to significant uptake of our mobile apps, increased conversion rates across all platforms through a focus on merchandising plus UI/UX (user experience/user interface), smarter personalisation through the use of sophisticated AI (artificial intelligence) models, and the success of our rebrand and first major above the line brand campaign.”
In its most recent ASX quarterly update, the company recorded $83.1 million in gross sales for Q2 FY22, reflecting an increase of 18.5 per cent year-on-year – a record for the period. Half-year sales came in at $152.6 million.
The update also revealed the company’s customer base stood at 963,883 as at 31 December 2021 - a jump of 18.4 per cent year-on-year. Of all transactions recorded in the December quarter, 60.1 per cent came from returning customers.
Senvirtne said that in-stock, which also includes private label, accounts for 12 per cent of gross sales and will continue to see expansion as customer demand grows.
“A key focus for Q2 FY22 was the successful execution of our in-stock strategy which saw extraordinary gross sales growth of 240 per cent year-on-year, following the launch of third party brands in Q1 FY22,” he said.
“With this strong demand for customers, we are excited about the potential for the in-stock business and we continue to invest and expand the range.”
MyDeal, which listed on the ASX in October 2020, continues to scale its range of products with Shaver Shop (ASX: SSG), Camera House and PetPost (part of Petspiration Group) now available on the platform.
Other recently onboarded brands include Melbourne-based jeweller Bevilles, Godfreys, Stratco, Drummond Golf and Marlin Brands.
The company is also optimistic about its momentum heading into H2 FY22 after reporting gross sales in the first 18 days of January spiked by 32.4 per cent year-on-year.
“As we look ahead, with our loyal and growing customer base, we will continue to grow our share of the market and are well-positioned to capitalise on the increased demand for online shopping,” Senvirtne said.
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