Home Shopping Sales Commission Rate Approaches 30% on Average... SME Products at 30.2%

[Asia Economy Reporter Seulgina Jo] Last year, the overall product sales commission rate of seven domestic TV home shopping companies was found to be close to 30% on average. CJ ENM had the highest sales commission rate for small and medium-sized enterprise (SME) products.

The Ministry of Science and ICT announced on the 29th that, according to the 2019 statistics on sales commission rates of seven TV home shopping companies, the average sales commission rate was 30.2% for SME products and 29.1% for all products. This represents a decrease of 0.3 percentage points and 0.5 percentage points respectively compared to the previous year. The companies surveyed were GS Home Shopping, CJ ENM, Hyundai Home Shopping, Woori Home Shopping (Lotte), NS Shopping, Home&Shopping, and Gongyoung Home Shopping.

By company, CJ ENM charged the highest sales commission rate for SME products. At 37.9%, it exceeded the average of the seven companies (30.2%). This was followed by Hyundai Home Shopping (36.4%), GS Home Shopping (35.2%), NS Shopping (33.9%), Lotte (29.4%), Gongyoung Home Shopping (20.1%), and Home&Shopping (20.0%). The commission rate gap between CJ ENM and Gongyoung Home Shopping and Home&Shopping approaches 18 percentage points.

For all products, NS Shopping had the highest sales commission rate at 36.2%. CJ ENM ranked second with a commission rate of 35.9% across all products. Hyundai Home Shopping followed with 30.1%. GS Home Shopping (28.5%), Lotte (27.7%), Home&Shopping (21.9%), and Gongyoung Home Shopping (20.1%) were all below the 30% range.

These figures reflect the actual burden on suppliers based on the home shopping sales commission rate calculation standards, including delivery costs borne by the home shopping companies. The Ministry of Science and ICT has been disclosing these figures since last year to encourage voluntary commission rate reduction competition within the home shopping industry.

The Ministry of Science and ICT stated, “Along with the disclosure of sales commission rate statistics, we will continuously encourage commission rate reductions through strengthened related evaluations during re-approval and by promoting the reduction of fixed commission broadcasts, while reinforcing the public responsibility of home shopping (support for SMEs).”

This content was produced with the assistance of AI translation services.