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How Yellow Octopus grew its revenue by 50% in a year

Yellow Octopus in Moorabbin, Vic.

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Last year was huge for online retailer Yellow Octopus, which opened its first bricks-and-mortar store in Moorabbin, Victoria. It saw a big increase in revenue, added more SKUs to its range, and upped its average transaction order value.

Founder Derek Sheen says 2017 was momentous for the retailer. “We’ve seen a whopping 50 per cent growth in revenue compared to the previous financial year and have added an additional 1,200 SKUs to our range of weird, wacky and wonderful gifts and gadgets.

“The Yellow Octopus newsletter subscriber list has doubled over the past 12 months to over 52,300 customers. Our focus on retention strategies has also led to the average transaction order value increasing by over 26 per cent.

“As a result of this, the business has been recognised as one of SmartCompany’s 50 fastest growing small and medium businesses in Australia for 2017, and also nominated as a finalist for the ORIAS Best Online Retail Marketing Award 2017.”

Yellow Octopus

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Yellow Octopus opened its first physical store in 2017.

With the opening the new Moorabbin store, Yellow Octopus carried out a marketing campaign using more traditional media channels to emphasise the playfulness of the brand.

“We printed and distributed 50,000 ‘Lost Unicorn’ flyers to local residents in surrounding suburbs, and offered customers a $20 voucher at our new store for finding ‘Sparkle the Unicorn’. The campaign not only drove foot traffic into the store but also helped introduce our brand to thousands of customers who may never have heard of us before.”

Yellow Octopus recently launched a new personalised greeting card service where customers can design their own greeting card on one of the iPads available in store. They can personalise an existing card template, add their own message and even upload their own photos.

“We then professionally print the greeting card in full colour on the spot, or include it with their online order. This new custom greeting card service has been very well received, with almost 20 per cent of all purchases having added a personalised card.”

Yellow Octopus is the home of gifts and gadgets in Australia, says Sheen, the place to come for unique and quirky gifts that are always impressive, never boring.

“We’re a huge store with a massive product selection: the destination customers can rely on whenever they’re stuck for a gift idea or shopping for someone who has everything. We also offer a 100 day ‘no quibbles’ money-back guarantee on all purchases. So if a gift is not suitable for whatever reason, we are more than happy to offer a refund or replacement.”

This story was originally published by Giftguide.

 

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