Close
 

Trade Me continues market domination with new services and increased profits

  • News
  • August 28, 2015
  • Elly Strang
Trade Me continues market domination with new services and increased profits

Trade Me’s story is an interesting one. Founded in 1999 by Sam Morgan, it started out as a buy and sell site for goods.


Trade Me in 1999

Fast forward fifteen years and Trade Me has become a giant in the Kiwi online space.

A survey by Ipsos into what are the top ten brands New Zealanders favour found Trade Me was in the top three, rivalled only by Google and Facebook.

The driving force behind people choosing Trade Me was the trust they had in the brand.

It also hasn’t restricted itself to buying and selling goods, expanding into jobs, find friends, daily deals, property, and now insurance.

It launched Trade Me Insurance in August, which was backed by Tower Insurance.

Trade Me CEO Jon Macdonald says “encouraging progress” had been made over the year with the company.

He says the venture into insurance complements Trade Me’s other financial services, such as its ‘pay now’ feature on auctions.

Judging by Trade Me’s recent moves, it’s acquiring businesses the same way Facebook has recently done to makes itself the home page for everything and anything.

Trade Me has recently gained a 14 percent stake in peer-to-peer lender Harmoney and has taken over Paystation’s online credit card processing and payments gateway in 2014.

It also bought Viewing Track, a Wellington-based company that makes organising tenants and property managers viewing rental properties easier.

This outwards expansion, coupled with its buying up of any competitors that stray into close territory, shows Trade Me is keen to dominate its share of the market.

Its performance in its primary function, selling general items, was down 2 percent on the previous year.

This may be because sellers are turning to other means that don’t charge a fee, such as Facebook buy and sell groups.

Facebook recently confirmed it is testing its own buy and sell section in New Zealand.

However, Macdonald says recent signs show promise that things will pick up.

“We’ve seen sales in our marketplace go from mild decline at the beginning of the year to consistent growth by the end of the year,” Macdonald says.

The Motors, Property and Jobs sections all performed well, with revenue up 16 percent across the three to $99.6 million.

Motors was the stand out performer, with a 24 percent lift from 2014.

Trade Me Jobs also improved its listings growth and was up 14 percent year-on-year.

The property section continues to be the most visited property site in New Zealand, with more than double the audience of its nearest rival. Revenue was up 5 percent.

Trade Me chairman David Kirk says the results are consistent.

“The result is right in line with our expectations, with double-digit revenue growth and another high tide mark for overall revenue,” Kirk says.

Macdonald says they expect similar revenue growth in the 2016 financial year, although he expects the performance will be better in the second half.

He remained upbeat about Trade Me’s future, but didn’t disclose any details about future acquisitions.

“We have bolstered our team, have better products, and improved sales and account management. We have a great future," Macdonald says.
 

​ ​

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 
News

Ambiente: A window on the world

Global forces like Brexit and climate change are affecting trade worldwide. Sarah Dunn consults the Ambiente trade fair in Germany for evidence of how this ...

 
 

Sephora beauty bus to tour New Zealand ahead of store launch

  • News
  • June 24, 2019
  • Emily Bell
Sephora beauty bus to tour New Zealand ahead of store launch

If you hadn’t already heard, global beauty giant Sephora is coming to Auckland this July. Founded in France by Dominique Mandonnaud in 1970 and owned by luxury goods group LVMH Moët Hennessy Louis Vuitto, Sephora has since become a leading beauty pioneer, community and trailblazer in the industry, to say the least.

Read more
 
 

Pottery Barn hits the New Zealand market through Ballantynes

  • News
  • June 21, 2019
  • Sarah Dunn
Pottery Barn hits the New Zealand market through Ballantynes

Heritage Canterbury department store Ballantynes is introducing the US brands Pottery Barn, Pottery Barn Kids and West Elm to the Kiwi market through a New Zealand exclusive partnership with Williams-Sonoma.

Read more
 

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

 
topics
Regional rollercoaster
What does retail look like in 2019 for ...
Concept to closet
Business coverage of New Zealand Fashion Week.
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
The future is bright
We spoke with four retailers in their twenties ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
How to open a store
Sarah Dunn considers what it would take to ...
All things to all people
Kiwi retailers share their omnichannel strategies.
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
Sisterhood
Women in retail help one another. We spoke ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 

Global recognition for instore innovation

  • Design
  • June 20, 2019
  • Courtney Devereux
Global recognition for instore innovation

The Global Innovation Awards (GIA) program was created by the IHA and International Home + Housewares Show to foster innovation and excellence in home and housewares retailing throughout the world. This year saw 30 national winners from 29 countries. The competition is structured on a two-tier level, evaluating national and global retailers across the following metrics: Overall mission statement, vision and strategy, store design and layout, visual merchandising, displays and window displays, marketing, advertising and promotions, customer service and staff training, innovation.

Read more
 
 
News

Trends analysed at Chicago's International Home + Housewares Show

Each new year for retailers is another question mark in guessing what to present to consumers. Luckily in the world of retail, trade shows can ...

 
News

Shoptalk 2019: The city of lights delivers

Juanita Neville-Te Rito shares a sprinkle of retail magic from Las Vegas retail conference Shoptalk.

 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita.hayhoe@icg.co.nz or call 022 639 3004

View Media Kit

}