Extended warranty boosts AO.com
ONE of the fastest growing areas of online white goods firm AO.com is sales of its extended warranty agreements, according to the prospectus published this week following its successful flotation.
Documents reveal that the company took £17.9m last year, compared with just £10.1m in 2012 – a rise of 77% – suggesting the policies is a key growth area for the business which shocked the city with its £1.2bn valuation.
By comparison, its total sales for the business grew 32% last year.
The company said it offers the warranties to every customer twice; immediately prior to delivery and one month before the manufacturer's warranty expires.
However, AO admitted it runs the risk of future investigations by the Office of Fair Trading, which has been looking into extended warranties after customers did not realise they could take out warranties elsewhere.