[Asia Economy Reporter Cha Min-young] During eBay Korea's biggest annual shopping festival, Big Smile Day, the delivery competitiveness of 'Smile Delivery' shone brightly, driving record-breaking success.
eBay Korea announced on the 15th that from the 1st to the 12th, during Big Smile Day, the transaction amount of Gmarket and Auction Smile Delivery increased by 60% compared to the same period last year. This is the best performance since Big Smile Day was first held in 2017, and about 110% higher than the average daily transaction amount of Smile Delivery on regular days.
Smile Delivery significantly contributed to increasing sales for customers by maintaining a stable delivery system even during Big Smile Day, when the highest order volume of the year is concentrated. If customers order by 8 p.m. on weekdays, they can receive various products ordered the next day consolidated into one box, and the number of users is steadily increasing.
The most purchased products through Smile Delivery were processed foods, accounting for about 22% of the total transaction amount of Gmarket and Auction Smile Delivery. Top-selling items included ‘Ottogi Odongtongmyeon’ (approximately 56,200 units sold), ‘Ottogi Rice 210g (24-pack)’, enough for 860,000 people, ‘Dongwon Tuna Light Standard 100g’ (about 25,700 units sold), and ‘Bibigo Beef Bone Soup 500g’ (14,500 units sold).
Home appliances also showed remarkable growth, with lifestyle, beauty, seasonal, and kitchen appliances accounting for about 20% of the transaction amount. Among them, the ‘Winix Zero S Air Purifier’ with over 2,360 units sold and the ‘MX Board 3.0S Mechanical Gaming Cherry Keyboard Black’ were highly popular. Additionally, various category products such as ‘Yuhan-Kimberly Kleenex 3-ply Deco Soft 33m x 24 rolls x 2 packs’ in daily necessities and ‘Ourhome Jirisan Water Pink 500ml 20 bottles’ in coffee and beverages recorded good sales.
The ‘Thanks to Smile’ campaign, which accumulates Smile Delivery sales profits to support shopping-vulnerable groups, also received great responses from customers during Big Smile Day. In particular, until the 8th, in partnership with LG Household & Health Care, a ‘Buy 1, Give 1 Brand Deal’ event was held where shampoo, toothpaste, detergent, and other products were sold at a discount and the same amount was donated according to sales volume. Additionally, the ‘X2 Brand Deal’ event accumulated extra donations based on sales volume, encouraging many customers to participate.
The LG Household & Health Care products accumulated during the event will be delivered to elderly people living alone who have difficulty purchasing online amid the COVID-19 situation.
Smile Delivery is the largest ‘open market-type fulfillment platform’ in Korea that links delivery agency, consignment, and e-commerce order processing. After consumer orders are placed, eBay Korea handles everything inside the logistics center, including picking, packing, delivery, and customer service. Fast settlement is provided with payment made the next business day based on the product shipment date, greatly helping small and medium-sized sellers with cash flow. Currently, dedicated drivers are assigned mainly in the Seoul area to deliver only Smile Delivery items, and in August, the dedicated delivery area was expanded to Jeju Island. The dedicated delivery areas will continue to expand going forward.
The Dongtan logistics center, which began full operation earlier this year, also greatly contributed to stable delivery. This is because it incorporates the WMS logistics management system optimized for Smile Delivery, developed by eBay Korea in 2015. WMS is a system that streamlines inbound and outbound of sales products, inventory status tracking, and logistics operations, and it will be continuously advanced using AI technology. Already, a significant portion of the processes from picking, labeling, to taping are automated.
Song Seung-hwan, head of eBay Korea Smile Delivery Business Division, said, “Smile Delivery has earned high trust from sellers and buyers with fast and safe delivery even during the surge in volume on Big Smile Day,” and added, “We plan to continuously develop Smile Delivery services by expanding dedicated delivery areas and handled categories.”
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