Amazon enters Korean market, plans to adopt store-in-store model

Yesterday, 11 Street, the e-commerce subsidiary of SK Telecom, issued a press release stating that it will officially cooperate with Amazon to launch an overseas direct purchase service. Korean customers will be able to purchase products directly from Amazon through the 11 Street website.

South Korea is the sixth largest e-commerce market in the world, with a total e-commerce market size of US$61 billion in 2019 and an e-commerce penetration rate of 24.1% in 2018. Due to the impact of the Covid-19 virus and the zero-contact social atmosphere advocated by South Korea, the penetration of e-commerce is still accelerating.

Unlike other e-commerce companies in South Korea, 11 Street has always focused on cross-border e-commerce business, and the company operates the "overseas procurement" menu as a first-level category. In order to establish a complete transportation chain and logistics system, 11 Street signed a contract with Malltail, which is operated by the Korean Center, as early as December 2018.

Since October last year , 11Street has helped Korean SMEs ship and sell their products on e-commerce platforms such as Lazada, Shopee, and Qoo10, and has certain operational experience and market audience base for overseas direct purchases. The CEO of 11 Street emphasized at an online press conference: "Compared with other companies' overseas direct purchase services, 11 Street has an overwhelming advantage in terms of product quantity and scale." This is also the fundamental reason why Amazon chose SK Telecom.

11 Street said in a press release that about 10 million Amazon products will be sold through 11 Street, including books, fashion, electronics, household items, beauty products, etc. At the same time, this is the first time that Amazon has cooperated with a local e-commerce company to carry out a store-in-store cooperation.

In order to accelerate cooperation between the two sides, South Korea has also introduced Amazon's cloud data system to provide better basic service facilities for South Korean e-commerce platforms.

With Amazon entering the Korean market and officially cooperating with 11 Street, Korea's e-commerce market will continue to expand, which will surely bring about a huge economic boom in the future. It seems that sellers will have to open up a new front.

Amazon

South Korea

market