- Revenue up 3.5% on F15 to $65.7m
- Sustained GMS strength driving revenue growth
- Product enhancements making a difference
In our General Items marketplace, we were delighted to see revenue growth return after two years.
Revenue was up 3.5 per cent year-on-year, and up 7.0 per cent year-on-year in the second half of F16. Gross merchandise sales have now been heading in the right direction for five consecutive quarters, and this was the key driver of the segment’s revenue growth.
We attribute the lion’s share of the return to revenue growth to the core product improvements we have made across many aspects of our marketplace. Another contributor was the simplified pricing we introduced in February 2016, with the key changes including the introduction of free photos on all listings, a new flat success fee, and a ‘no success fee’ tier for items that sell for $1 or less.
We were also pleased to release a new ‘Book a courier’ service on Trade Me in April 2016, and see mitigating hassle for buyers and sellers around shipping as a big opportunity.