Home » C-commerce direct purchase offensive… E-commerce turning its attention overseas

C-commerce direct purchase offensive… E-commerce turning its attention overseas

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C-commerce direct purchase offensive…  E-commerce turning its attention overseas

Sales channel diversification strategy in C-commerce offensive
China still big, but emerging markets in Asia and North America

▲Key keywords in eBay’s direct purchase market (Photo provided by eBay)

While the direct purchase market has become more active due to the onslaught of Chinese direct purchase (direct purchase) e-commerce companies, domestic e-commerce companies are showing moves to target the reverse direct purchase market. In addition to China, the largest market for reverse direct purchase, it appears to be expanding its territory to Asia, including Taiwan, and North America.

According to Statistics Korea on the 17th, online overseas direct sales last year amounted to 1.6561 trillion won, a 10.1% decrease from the previous year. By region, sales to China, the largest market, decreased by 12.6% to KRW 1.0569 trillion. During the same period, Japan also decreased by 15.2% to 226.7 billion won. On the other hand, direct online sales to the United States amounted to 228.1 billion won, an increase of 11.1% compared to the previous year.

Despite the decline in the growth of the reverse direct purchase market last year, the industry is still predicting a recovery in the reverse direct purchase market. This is because domestic e-commerce companies desperately need a boost in sales due to the offensive of Chinese e-commerce companies. On this day, eBay selected one-person trade and North America as trends to watch out for in this year’s reverse direct purchase market. eBay predicted that an era of ‘one-person trade’ will begin in this year’s reverse direct purchase market, based on transactions between individuals selling overseas.

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In particular, as shown in data from the National Statistical Office, the region where Korean sellers on eBay sold the most last year was North America, including the United States and Canada. These regions accounted for 64% of total sales.

▲Products from Korean small and medium-sized companies that Taiwanese customers ordered through Coupang are being loaded onto a cargo aircraft bound for Taiwan at Incheon International Airport. (Photo provided by Coupang)

Major domestic e-commerce companies have also begun strengthening and reorganizing their reverse direct purchase business. Coupang is selling Korean products to Taiwan through its new Taiwan business. As direct purchasing is Coupang’s main business model, many products purchased by Coupang are being delivered to Taiwan. According to Coupang, 70% of products currently sold in Taiwan are products of Korean small and medium-sized companies. As of the end of September 2023, there are 12,000 small and medium-sized businesses that have entered Taiwan through Coupang. Coupang explains that exports to Taiwan are continuously increasing.

Last month, G Market joined hands with Mongolian e-commerce company Shopee to target the Mongolian market. Shopee is Mongolia’s No. 1 e-commerce company with 650,000 customers. Considering that Mongolia’s total population is about 3.5 million, one in five people uses Shopee.

G Market carefully selects 300,000 excellent products from overseas reverse direct purchase sellers and provides them to Shopee. Shopee links G Market products within the site and is responsible for shipping from Korea to Mongolia. Currently selling products include Korean fashion, beauty, music, and food.

Q10, which formed the ‘Time Park (Timon, WeMakePrice, Interpark Commerce)’ alliance, expanded its territory into North America by acquiring Wish, an e-commerce company that operates shopping platform services in Europe and the United States.

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Wish is a shopping platform founded in 2010 based in San Francisco, USA. It is currently being served in 33 languages ​​to consumers in over 200 countries around the world. Q10’s ambition is to open a global integrated sales channel to all domestic sellers transacting with its affiliate ‘Time Park’.

Meanwhile, 11th Street, which discontinued its reverse direct purchase service last year, is also using the reverse direct purchase business card again. 11st added ‘Global 11th Street’ to its purchase and sales terms and conditions in mid-January. According to the terms and conditions, Global 11st is ‘an overseas 11st site opened overseas or operated for overseas sales and a site operated by an overseas business operator.’

The industry sees this as work to prepare for a new reverse direct purchase service. Coincidentally, the name of the service that went out of business was Global 11th Street. However, the service start period was not specified. 11st will separately announce the implementation date of matters related to Global 11st at each service point.

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