Open Market's 'Maximum Discount' Phrase Followed by Rampant 'Seller Tricks'

Sneaky Price Increase First... Up to 78% Discount Event
Monitoring Gmarket, 11st, etc., but Real-Time Price Checks Fall Short

[Asia Economy Reporter Jo In-kyung] "If they put up a monitor that sold for 780,000 won last year at 1,550,000 won and then say they are giving a discount..."

Consumer A sighed while searching for a product he had been eyeing during a large-scale discount event held by an open market, said to be the biggest of the year. The exact same large monitor with the same serial number that A purchased last year was listed at exactly double the price. Even after applying 30-40% discount coupons and benefits, the purchase would still be more expensive than last year’s price.

◆Raising Prices Then Giving 50% Discount

On the 12th, as the lowest price competition in the distribution industry expanded to e-commerce companies and large-scale online discount events were underway, some open market sellers continued to deceive consumers by inflating the selling price higher than usual and then making it appear as if the discount rate was large.

Open market companies have introduced countermeasures to prevent such unfair practices by sellers, such as prohibiting the posting of inflated product prices, but they are struggling because, due to the nature of intermediary companies, they cannot enforce these measures.

eBay Korea operates Gmarket, Auction, and G9, which started the Big Smile Day event from midnight on the 10th. It is the largest annual promotion with about 200 popular domestic and international brands, over 30,000 sellers, about 30 million discounted products, and discounts of up to 78%.

Before this event, eBay Korea informed sellers that raising prices higher than the existing selling price was prohibited. If a seller registers a product at a higher price, the relevant department monitoring in real time will immediately check and request the seller to modify it or restrict participation in the event. However, cases still occur where prices are raised and then discounted to sell at the normal price.

An eBay Korea official explained, "First, the responsible MDs monitor in real time, and sellers are fully informed that price inflation can lead to sanctions, but because there are so many participants and prices fluctuate in real time, some cases are missed."

Disadvantages for Unethical Sellers

11st, which held the 'Monthly 11th Day' event on the 11th, also operates a price registration system that prevents sellers from raising prices above the average price sold in the previous three weeks during discount events. Unilateral cancellations by sellers are also strictly prohibited through monitoring, and penalties are imposed if violated.

An 11st official said, "Except for some products with frequent price changes or unavoidable reasons, it is impossible to register prices higher than before the event. Nevertheless, sellers who maliciously cause price confusion can have their top selling activities suspended."

However, due to the nature of open markets where various sellers freely sell products, there is no legal basis to sanction sellers solely for price changes. The decision on price lies with the sellers, and the structure is based on price competition where customers naturally flock to sellers offering the same product at a lower price.

Instead, sellers are encouraged to improve product competitiveness and price competitiveness through providing reviews, ratings, and assigning grades, allowing fair transactions.

An industry official said, "Every time there is a large discount event, these price inflation tricks are repeated and consumer complaints arise, but the scope of response available to open markets, which are merely sales intermediaries, is limited. We recommend consumers carefully check seller reviews and ratings before purchasing."