by Kim Chulhyun
Published 22 Jan.2025 09:30(KST)
Woowa Brothers, the operator of Baedal Minjok, announced on the 22nd that it will introduce a win-win fee system starting from the 26th of next month. According to the win-win plan agreed upon last year by the delivery platform win-win council, differential commissions will be applied, offering greater preferential rates to merchants with smaller delivery sales. This aims to alleviate the economic burden on merchants and support the improvement of their profit structures.
Under the win-win fee system, merchants using ‘Baemin1 Plus’ will be divided into four tiers based on their sales volume within Baemin, with differential brokerage fees and merchant-borne delivery fees applied accordingly.
Merchants with lower sales will pay lower commissions: the top 35% in sales will be charged 7.8% (excluding VAT), those between the top 35% and 80% will be charged 6.8%, and those between the top 80% and 100% will be charged 2.0%. Delivery fees will range from 1,900 to 3,400 KRW. For the top 35% in sales, delivery fees will be higher than current rates, ranging from 2,400 to 3,400 KRW. For those between the top 35% and 50%, delivery fees will be 2,100 to 3,100 KRW, and for those between the top 50% and 100%, 1,900 to 2,900 KRW.
Looking at brokerage fees, they will be reduced by 2 to 7.8 percentage points compared to the existing 9.8%. For half of all registered merchants with smaller sales volumes, only the brokerage fee reduction will be applied without adjusting delivery fees, thereby reducing the cost burden for most merchants engaged in delivery operations compared to the current situation. Merchants in the lower 65% sales tier will see a decrease in delivery operation costs regardless of order amount, and especially those in the bottom 20% tier will benefit from brokerage fees at the level of public delivery apps, providing a foundation for growth.
Based on an average order amount of 25,000 KRW, Baemin explained that merchants in the bottom 20% tier will save 1,950 KRW per delivery compared to before, those in the 20-50% tier will save 750 KRW, and those in the 50-65% tier will save 550 KRW.
The differential commission tiers are calculated based on the average daily delivery sales of merchants who have used Baemin1 Plus for at least one day within the previous three months. Merchants with zero operating days are excluded, so those not engaged in delivery operations are not subject to the win-win fee system. The tiers are calculated every three months and applied in three-month cycles starting one month after the calculation end date. For new merchants who start using Baemin1 Plus within one month before the end of each tier calculation period, a brokerage fee of 7.8% will be applied initially, and differential rates based on sales will be applied from the next tier calculation period after sales data accumulation.
A Baemin official said, “In line with the purpose of the win-win council agreement, we made our best efforts to implement the system early in the year so that practical benefits can be quickly provided to small business owners facing various difficulties. We will continue to strengthen competitiveness through ongoing service improvements and customized support, and work together to achieve better growth.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.