Shoppers snap up video recorder for $9 after online glitch

SAVVY shoppers have exploited a software glitch to fleece a young entrepreneur's online store of almost $50,000 in stock.

ruslan kogan

SAVVY shoppers have exploited a software glitch to fleece an online retailer of almost $50,000 in stock.

 The mistake meant shoppers were able to order a $39 set-top box personal video recorder for just $9 including home delivery.

More than 500 people took advantage of the glitch before the loophole was closed by online retailer Kogan Technologies.

The company issued a statement confirming the debacle, saying it would honour customer orders.

The loophole went viral after being posted on website ozbargain.com.au on Wednesday morning.

Kogan Technologies founder Ruslan Kogan said it was quickly closed.

"This was a bug that we were unable to plug until 10.39am, resulting in hundreds of Kogan products being sold at well below cost price," Mr Kogan said.

He said it would be easy to hide behind the company's terms and conditions to wriggle out of having to honour the transactions.

A millionaire internet entrepreneur, Mr Kogan is known for his battles with Harvey Norman owner Gerry Harvey over the latter's alleged failure to embrace online retailing.

In a publicity stunt just last week, Mr Kogan publicly "filed for divorce" from traditional retail, citing "irreconcilable differences".

The incident came as latest figures show Australians are increasingly shopping online at the expense of traditional "bricks and mortar" retailing.