During Q3 2017, Vipshop Holdings Ltd – ADR (NYSE:VIPS) delivered 98% of its orders via its proprietary last mile network compared to 90% in the same period, a year ago. Nearly 72% of consumer returns were done directly by company’s last mile staff, which shows a notable jump from 50% in the prior year period.
Vipshop posted that for Q3 2017 the average revenue per customer surged by 11% YoY, which was primarily led by the 4% year-over-year jump in average ticket size and 7% YoY increase in the count of orders per customer. The company started to introduce its Super VIP Paid Membership Program to its customers in Q3 2017. Also, the average visiting frequency of consumers who registered in the program jumped by nearly 100% after such consumers began paying for the membership.
The company is connected to the inventory management setup of over 500 of its suppliers. In Q3 2017, daily average SKUs online came at 3.2 million, representing a notable growth from 1.2 million in the same period, a year ago.
Vipshop recently included a number of popular international and domestic brands to its platform, including Sergio Rossi, Shanghai Tang, Peuterey, Diesel and Marc Jacobs. In October 2017, the company’s Internet finance subsidiary closed its second offering of Renminbi-denominated “ABS” of RMB500 million. During Q3 2017, the company’s consumer financing business recorded 3.8 million users, which was a jump of 146% from 1.5 million users in the same period, a year ago.
For Q4 2017, the firm anticipates its total net revenue to come in a range of RMB22.8 billion to RMB23.8 billion, exhibiting a YoY growth rate of around 20% to 25%. These forecasts showcase the firm’s preliminary and current view on the operational and market conditions, which is subject to change.
In the last trading session, the stock price of Vipshop declined more than 1% to close the day at $8.02.