"Adding Convenience to Price Competitiveness"… Overseas Direct Purchase Platforms Launching Korea-Specific Services

iHerb's Riverside logistics center in California, USA, managing products shipped to Korea through an automated system.

Due to the prolonged COVID-19 pandemic, overseas direct purchase platforms targeting the Korean market are focusing on 'localization.' They are attracting domestic consumers by offering Korean-language websites, free shipping, Korean-language customer service, and KakaoPay services.

On the 11th, iHerb announced that as part of its recent strategy to expand in the Korean market, it is also considering introducing a 'KRW fixed price service' to reduce consumer burden when the dollar exchange rate rises. Choi Ji-yeon, iHerb Korea branch manager, said, "We are also promoting the introduction of a subscription service currently operated in the U.S. to Korea."

Currently, Korea is one of the top three countries globally in sales among over 180 countries where iHerb products are sold. The reasons for its popularity include Korean language and KRW pricing, Korean customer service, and Korea-specific marketing conducted since the establishment of the Korean branch in 2020. An iHerb official explained, "We have built Korean-language customer service, automation, and a 72-hour delivery system for over 10 years, and last year we introduced KakaoPay payment services, which have been well received by Korean customers," adding, "We minimize inconvenience for Korean customers by completely blocking products that cannot be imported according to the Ministry of Food and Drug Safety standards from appearing on the Korean website."

Recently, global luxury online edit shops are also focusing on expanding their customer base in the Korean market. MatchesFashion allows users to change the country, language, and local currency settings to suit the Korean environment when accessing the website. Free shipping is offered for purchases over 200 pounds (approximately 320,000 KRW). The same benefits apply to direct shipping to Korea. They also provide a prepayment option for VAT to enhance customer convenience. Mytheresa offers an official Korean website, and tax-free shopping is available for purchases under 150 USD in the U.S.

Amazon has been popular among domestic consumers since the early days of the overseas direct purchase boom, boasting the advantage of offering various electronic brands from around the world. In the past, direct shipping to Korea was impossible without a forwarding address, but now direct shipping to Korea is available, making it more convenient for domestic direct purchase consumers. Last year, Amazon entered 11st, further increasing accessibility for Korean consumers to overseas direct purchases.

An overseas direct purchase platform official said, "We will expand the market by emphasizing price competitiveness while enhancing convenience for Korean customers," adding, "The growth trend of the overseas direct purchase market, which succeeded in expanding its customer base during the COVID-19 period, will continue in the post-COVID era."