Kogan chief executive and founder Ruslan Kogan has tried to reassure investors that the business will benefit, rather than suffer, from the arrival of Amazon in Australia.
As a positive trading update sent Kogan shares to a three-week high, Mr Kogan told shareholders at the company's annual general meeting that Amazon will provide another platform for his online retail empire, which sells consumer electronics, general merchandise, travel deals and insurance.
He said online retail was still under-represented in Australia compared to other major developed economies, accounting for about 7.5 per cent of the total Aussie retail market.
"For economies with a large marketplace player (such as an Amazon or an Alibaba) online retail penetration is closer to 20 per cent," Mr Kogan said.
"While Amazon is already a major force in Australia - it's a top 25 site - the launch of a local presence will undoubtedly bring more shoppers online."
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He said Kogan.com will benefit from an additional platform, just as it has from its presence on the eBay and TradeMe channels.
However, Mr Kogan did not make it clear as to whether his business will launch on Amazon, which is poised to roll out its full offering in Australia soon, possibly before Christmas.
Kogan.com's revenue for the four months to the end of October grew by 36.2 per cent, with a gross margin of 18.4 per cent, up from 17.6 per cent in the same period a year ago.
Earnings before interest, taxes, depreciation, and amortisation was up 58.3 per cent against the prior year's pro-forma EBITDA.
"This represents an increase in the year-to-date growth trend, following a strong trading performance in October," Mr Kogan said.
Kogan shares rallied on the strong sales update and finished Friday up 48 cents, or 12.6 per cent, to $4.29 - their highest level since late October.
Mr Kogan said the business is expected to deliver strong revenue growth as it continued to invest in inventory and marketing and expand its business into other areas, including its recently launched insurance arm.
The company made a net profit of $3.7 million for 2016/17, more than quadruple what it made a year earlier after revenue jumped 37.1 per cent to $289.5 million.
