Platform Companies Step Up to Boost Exports for Small Business Owners

Coupang Launches Rocket Cross-Border Service in Taiwan... "A Bridge for Small Business Exports"
Linkshops Supports Exports for 2,300 Dongdaemun Wholesale Vendors

"Overseas consumers can now easily purchase Korean products through Coupang. It will serve as a bridge for exports by domestic small business owners," said Kang Han-seung, CEO of Coupang, at the ‘Korea Digital Leap Strategy Announcement Ceremony’ hosted by the Ministry of Science and ICT on the 28th of last month. This statement was made with Coupang’s recently launched ‘Rocket Cross-Border (direct purchase)’ service in Taiwan in mind. Once this service is established, domestic small and medium-sized enterprises (SMEs) will be able to explore overseas markets without worrying about the various complicated procedures required for export, such as language support or logistics customs clearance. In other words, the platform company plays a role in leading SMEs to become export companies.

According to industry sources on the 2nd, Coupang started the ‘Rocket Cross-Border’ service in Taiwan in June and is currently selling over 5 million products including groceries, cosmetics, health supplements, baby products, and home electronics. Most of these products are sold by domestic SMEs and small business owners. Coupang initially chose Taiwan as its second overseas market after Japan and conducted a pilot service in the form of quick commerce before expanding the business into a reverse direct purchase model. It is expected that the number of participating partner companies and products will increase in the future. As of the end of last year, the number of small business owners on Coupang was 157,470, and the number of products sold on Coupang reached 1.1 billion, a 97% increase compared to the end of 2019. This has opened a path for them to enter the Taiwanese market through Coupang.

Local response in Taiwan has also been positive. Customers can enjoy free shipping on purchases over 690 Taiwan dollars (TWD) (approximately 30,000 KRW), and the fast delivery service allows products to be received within an average of 5 days after ordering. This is seen as an extension of Coupang’s ‘Rocket Delivery’ DNA, which drove its growth domestically, into its overseas business. Taiwanese users of Coupang’s service have responded that "the fast free delivery is better than Amazon or Shopee."

There are other platforms that help small business owners with exports. Linkshops, which operates a platform that mediates purchasing for fashion wholesale markets in Dongdaemun and Namdaemun as well as domestic and international companies, has helped open sales channels targeting not only the domestic market but also the Greater China and East Asia markets from the early stages of its service, assisting Dongdaemun fashion wholesalers in expanding overseas. This was initiated to support SMEs who want to export but face difficulties due to language barriers or lack of know-how.

According to Linkshops, as of the first half of this year, over 50 countries including Greater China, North America, Europe, and South America have overseas buyers registered as members, and actual exports have been made to 23 countries. The number of orders exceeds 1 million. The number of Dongdaemun wholesale companies receiving overseas orders through Linkshops reaches 2,300. The platform’s competitiveness, attracting 500,000 visitors monthly, has paved the way for SMEs to explore overseas markets.

An industry official said, "Platforms targeting SMEs are opening not only their growth domestically but also export routes overseas," adding, "In a situation with high exchange rates and great uncertainty, the role of platforms will receive more attention."