The Zebit Inc (ASX: ZBT) share price is pushing higher after the release of a trading update.
At the time of writing, the US-based e-commerce company's shares are up 1% to 95 cents.
Despite this, the Zebit share price is still trading materially lower than its October IPO price of $1.58.
How is Zebit performing?
According to the release, the "Amazon for the under-served" had a record Black Friday sales period with $1.63 million in net sales generated on the day. This was an increase of 29.9% compared to Black Friday 2019.
In addition to this, the company provided an update on its performance for the first two months of the fourth quarter of FY 2020.
Over the period, Zebit has delivered total net sales of $23.5 million. This is an increase of 21.8% compared to the same period in FY 2019.
It also revealed that it recently achieved a record 3,000 customer approvals in a single day.
You might be wondering why Zebit needs to approve customers. These approvals relate to its unique business model which, unlike traditional online retailers like Kogan.com Ltd (ASX: KGN) and Amazon, comes with an in-built buy now pay later function. Its focus is on consumers with low credit scores that may be unable to get credit elsewhere.
Pleasingly, Zebit advised that it continues to see strong credit performance, which is leading to a widening contribution margin.
In light of the above, the company reiterated that it is on track to achieve its prospectus forecast for the year ending 31 December 2020.
Zebit's President and CEO, Marc Schneider, commented: "We are extremely pleased with our trading results over the last few months and we believe that the sales achieved in the first two months of Q4 is a strong indicator of how healthy and robust the December month is expected to be."
"So far this holiday season has proven to be a solid tailwind for the business. Q4 is seasonally the Company's strongest, and we are entering the final month of FY20 with strong momentum. I look forward to publishing our Q4 results in January 2021 and our FY20 numbers shortly thereafter," he concluded.
