eBay Korea helps SMEs increase exports
eBay Korea Vice President Choi Moon-seok, second from right, applauds with executives of partner firms TCK, Godosoft and CJ Korea Express at eBay Korea headquarters in Seoul after the launch of a “Global Export Platform” to support exports by small businesses in August. Courtesy of eBay Korea
By Park Ji-won
eBay Korea, an affiliate of the world’s largest online marketplace, is supporting small- and medium-sized enterprises (SMEs) who want to expand overseas.
The affiliate, which has 10,000 sellers and runs the nation’s two largest shopping websites Gmarket and Auction, is supporting SMEs through two programs _ the Cross Border Trade (CBT) program and the Global Export Platform (GEP).
The programs have become popular and successful in just a few years, generating exports worth 250 billion won ($230 million) in 2012, sharply up from 17 billion won in 2008.
The CBT program is the only one in Korea that supports SMEs by enabling them to sell their products overseas through eBay.com. The website is the world’s largest online marketplace, with 200 million users in 200 countries.
The program equips SMEs with the necessary knowledge and tools to sell their products on eBay.com. It teaches businesses through its service center on eBay.co.kr about online and offline Internet commerce, and consultation for customer services.
Clothing sales are the highest in the CBT program, followed by cosmetics, according to a company official.
Other popular products are those related to the Korean Wave or “hallyu,” as well as smartphones and car accessories.
Recently, a Korean business that participated in the program became a Titanium seller on eBay.com. The seller achieves $1.8 million in sales and/or 180,000 transactions annually.
According to the official, 30 percent of the total turnover on eBay Korea comes from Russia, Kazakhstan, Brazil, Chile and Argentina, suggesting the firm has succeeded in diversifying its export destinations through the channel.
The official said the company will target Asian and South American countries next.
Meanwhile, GEP was launched last August and supports sellers by enabling them to sell their products in 39 countries. When sellers upload their products on Gmarket, the leading online shopping site in Korea, the products are also sold on eBay.com.
To further support SMEs, eBay Korea has partnered with other Korean companies such as TCK, which teaches businesses about customer services; GodoSoft, which provides English translations of Korean product information; and CJ Korea Express.
“We provide SMEs with various online distribution channels so that they can cater to new customers overseas,” said the official.
“eBay Korea wants to strengthen its service not only for hallyu products but also for other goods with significant potential, so that companies can enter markets worldwide,” he added.