Small Business Owners Enjoy 'Zero Commission' Until Reaching 10 Million Won in Sales
Original Seller Product Price Reduction Leads to Increased Payments
11st's 'Original Seller' products, which have been discovered since August last year, are gaining popularity. 11st exempts sales commissions for sellers who meet certain criteria and continues to provide support such as consulting.
According to the distribution industry on the 11th, the payment transaction amount of 11st Original Sellers in the past three months surged about 5 times (382%) compared to the transaction amount from August to October last year, the first three months after the program launch. During the same period, the quantity of products sold also increased more than 5 times (408%). In May, the monthly cumulative transaction amount exceeded 11 billion KRW, marking the highest performance since the program's launch.
Original Sellers is a seller growth support program open to any domestic business member who owns their own unique products and brands. The program offers a 'zero commission' benefit, where no sales commission is charged until the participating seller's sales reach 10 million KRW.
Representatives of the agricultural corporation 'Jaeminneun Nongbu Saenghwal' are holding products. [Photo by 11st]
As a result, 'Hanugojujaengi', which joined as an Original Seller, lowered product prices by the amount saved from the zero commission benefit to attract new customers. Hanugojujaengi's payment transaction amount in May increased more than 20 times compared to April, the first month of participating as an Original Seller. 'Jaeminneun Nongbu Saenghwal', an agricultural corporation established by a mother and daughter who returned to farming, is also a representative growth case. Ahead of Family Month in May, Jaeminneun Nongbu Saenghwal held special sales events focused on gift products. As a result, the transaction amount, which had remained in the tens of thousands of KRW per month on average last year, exceeded 15 million KRW in April.
11st is focusing not only on supporting sales commissions but also on seller support such as consulting. This is to build a long-term co-growth structure with the sellers. By discovering sellers with originality and potential and supporting their growth, once sellers reach a growth trajectory, a synergy effect can be expected by increasing customer attraction through differentiated products and benefits.
To this end, 11st is implementing support measures including zero commission benefits, ▲providing advertising points to maximize product exposure, ▲customized marketing consulting for sellers, and ▲product exposure in the 'Original Pick' (a specialty section for Original Seller products). As these effective support measures attract attention, the number of active Original Sellers has increased to about 4,300. This is about 11 times more than at launch (around 400). The number of products sold by Original Sellers has reached 280,000.
Hyunsoo Park, Chief Business Officer (CBO) of 11st, said, "Through the program, sellers increase their sales, and 11st creates a 'co-growth' structure by acquiring new customers through diverse and unique products," adding, "We will continue to support the growth of 'K-Sellers' with unlimited potential and possibilities?from small and medium-sized merchants across the country with differentiated products, to young entrepreneurs with sparkling ideas, to novice owners launching their own brands for the first time?and continuously create mutual synergy."
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