E-commerce Small Business Support Boosts Sales and Increases Store Openings

Exemption of Sales Commission and Rocket Delivery: Growing Support Measures Show Increasing Effects

[Asia Economy Reporter Kim Cheol-hyun] E-commerce companies' policies to support small business owners hit by the spread of the novel coronavirus infection (COVID-19) this year are gradually showing results. Not only has the number of small business owners joining the platform increased significantly due to various support provided for developing online sales channels, but there are also effects of improved sales for small business owners overcoming the ongoing COVID-19 situation.

According to e-commerce company TMON on the 10th, the number of newly joined businesses as of last month increased by more than 50% compared to the same period last year. Compared to a 20% increase in newly joined businesses as of July compared to the same period last year, the growth rate is accelerating. TMON explained that this is due to the effect of the 'New Partner Sales Commission 0% Policy' implemented since August last year to expand online sales channels for small business owners.

The New Partner Sales Commission 0% Policy exempts sales commissions for up to 60 days for newly joined partners on TMON, and any small business owner who submits a business registration certificate and makes their first transaction with TMON can apply. Considering that the average commission rate for sellers on online shopping channels is over 10%, this translates into a corresponding increase in sales. Many small business owners are gaining opportunities to expand their sales channels through this. A representative example is P&C Labs, a new company that joined in August, which achieved about 200 million KRW in sales from mask sales in just 10 minutes within less than a month. A TMON official said, "We will do our best to strengthen our position as a win-win shopping channel that can grow together with small business owners."

WEMAKEPRICE (WEMAKEPRICE) has also achieved results in supporting small business owners through the 'New Partner Support Program' implemented since November last year. Over the past year since implementation, the number of newly joined partners recently surpassed 47,000, among which 1,700 companies achieved monthly sales of over 10 million KRW. The number of companies achieving over 100 million KRW in monthly sales reached 200. This program offers 0% sales commission (including 4% VAT on payment processing fees), weekly settlements, and server fee exemptions. The application period is 'until cumulative transaction amount reaches 50 million KRW' or 'for 6 months after program application.' WEMAKEPRICE explained that the low commission and fast settlement benefits provide practical help for small business owners to maintain their businesses.

At Coupang, small business owner sales grew by 27% in the second quarter of this year compared to the fourth quarter of last year, just before the COVID-19 outbreak. In particular, sales through 'Rocket Delivery' in the second quarter of this year surged 84% compared to the same period last year. The performance of small business owners located in local regions, accounting for 70%, is also remarkable. In the first half of this year, sales of small business owners in Jeju region trading with Coupang increased by 171% compared to the previous year, and sales of small business owners in Gyeongnam region increased by 137% compared to last year. Compared to data from Korea Credit Data surveying 600,000 small business owners nationwide, which showed an average 8% decrease in sales of local small business owners in the first half of the year, online sales through e-commerce are interpreted as effectively supporting small business owners. A Coupang official explained, "After the COVID-19 crisis, many small business owners nationwide suffered business damage, but small business owners joining Coupang were able to endure because their sales per company increased through Rocket Delivery."

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