AO.com reported double digit growth at the end of their third quarter – up 11.2% for the year with an increase of 16.6% year on year for the quarter ending on the 31st of December 2017.
Black Friday being spread out over a two week period paid dividends for the company who say that it enabled them to manage demand more effectively and deliver an even better experience for customers. Sales in their newer categories (Gaming, Mobile, Smart Home and Photographic devices) was also ‘encouraging’.
Launched in 2001, AO has gone on to become one of the largest online electrical retailers in the UK. With big-brand products ranging from washing machines to TVs, and a focus on amazing service, they offer free delivery and free returns collection if a customer finds the product isn’t suitable or doesn’t fit in their home on arrival – a major plus for consumers when you consider that they sell large household appliances.
AO and eBay
AO also sell on eBay and in the last year have accrued almost 23,000 feedback, over 3000 of which was in the past month. With a grand total of 74,000 eBay feedback received in a four and a half year period, it’s safe to say that AO have accelerated their eBay sales over the past year.
We’ve done some rough calculations based on AO’s average eBay selling price and estimate that they turn over more then £4 million per year on eBay but potentially much more.
On eBay they set themselves apart with their service proposition which includes: Free delivery on all products (or next day at a low cost); All items brand new; eBay Premium Service; Excellent service, as rated by buyers; Best price guarantee – They beat or match all other retailers; and 30 day returns with free collection.
AO trading outlook
However AO remain cautious in their forecasts due to the uncertain economic outlook for the UK, despite their diversification into Germany and the Netherlands which saw stellar performance. AO revenues in Europe were up 62%.
“Looking ahead, although we need to be mindful of the uncertain economic outlook (particularly in the UK), as long as we are relentless in our focus on making things easy for our customers, we can be confident that they will continue to choose the AO Way.”
– Steve Caunce, AO CEO
2 Responses
Interesting that on all their White Goods they have the following in the Delivery / Returns tab:
“Next Day available from £9.99 – If you would like to use this service then you will need to contact us to arrange it on 0344 257 3442.”
and
“Timeslot – We’ll give you an estimated delivery window and details on how to track your delivery. If you’d like a more specific timeslot, you can call 0344 257 3442 and select one for £19.99.”
Not only is this external contact information, but it also feels like they could easily be taking offline sales here.
e.g. https://www.ebay.co.uk/itm/112394426507