e-Commerce Market Analysis

The eCommerce market in South Korea

In South Korea is the sixth largest market for eCommerce with a revenue of US$74 billion in 2020, placing it ahead of France and behind Germany.

With an increase of 22%, the South Korean eCommerce market contributed to the worldwide growth rate of 26% in 2020. Revenues for eCommerce continue to increase. New markets are emerging, and existing markets also have the potential for further development. Global growth will continue over the next few years. This will be propelled by East and Southeast Asia, with their expanding middle class and lagging offline shopping infrastructure.

The eCommerce market includes online sales of physical goods to a private end user (B2C). Included in this definition are purchases via computer as well as mobile purchases via smartphones and tablets. Excluded from the definition of ecommerceDB are the following: digitally distributed services (e.g., travel tickets), online stores dedicated to digital media downloads or streams, online stores dedicated to B2B markets, and sales between private individuals (C2C) within the eCommerce market.

The eCommerce market in South Korea

Top online stores

The biggest player in the South Korean eCommerce Market is ssg.com. The store had a revenue of US$483 million in 2020. It is followed by yes24.com with US$401 million revenue and apple.com with US$367 million revenue.

Store rankings are based on every store that generates revenue in in South Korea. These stores can either have a national focus and only sell in their main country or operate on a global scale. For this evaluation, only revenue created in in South Korea was considered.

One of the fastest-growing stores in the South Korean market is sivillage.com. The store achieved sales of about US$45.4 million in 2020. Its revenue growth amounted to 26% in the previous year.

Top online The eCommerce market stores in South Korea by eCommerce net sales 2020 in million US$ The table shows the stores that generate the highest revenue in the South Korean market. For this evaluation, only revenue created in in South Korea was considered. Basis are all shops on ecommerceDB that operate in in South Korea.

# Store
1. ssg.com US$483m
2. yes24.com US$401m
3. apple.com US$367m
4. gsshop.com US$317m
5. oliveyoung.co.kr US$289m
The eCommerce market in South Korea

Market size and growth rate

Revenue in 2020
US$74,222m
REVENUE
CAGR 2020-2024
6%
CAGR

Digital Market Outlook by Statista

The Digital Market Outlook presents up-to-date figures on markets of the digital economy. The comparable key figures are based on extensive analyses of relevant indicators from the areas of society, economy, and technology.
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Market expansion in in South Korea is expected to continue over the next few years, as indicated by the Statista Digital Market Outlook. It has been predicted that the compound annual growth rate (CAGR 20-24) for the next four years will be 6%. Compared to the year-over-year growth of 22%, this decrease suggests a moderately flooded market. Another indicator of market saturation is the online penetration of 68% in in South Korea; in other words, 68% of the South Korean population have bought at least one product online in 2020.

Five categories are considered by ecommerceDB. Fashion is the largest segment in in South Korea and accounts for 29% of the eCommerce revenue in in South Korea. This is followed by Food & Personal Care with 22%, Electronics & Media with 18%, Toys, Hobby & DIY with 17% and Furniture & Appliances with the remaining 14%.

The eCommerce market in South Korea
Top shipping service providers

In in South Korea, CJ Logistics is the most frequently offered delivery service provider among online stores. Of those stores that indicating which service they use to transport their goods, 64% cited CJ Logistics as one of their providers. Moreover, Lotte and UPS are among the top three shipping service companies offered by online retailers in in South Korea, at rates of 9% and 5%.

Shipping information is based on orders from the store's main country, which is defined as the one where the store generates most of its online revenue. In this case, it is in South Korea. Only stores that provide information about their shipping providers can be considered.

Competitor analysis of shipping service providers in South Korea The table shows the most offered shipping providers within the top 100 online stores in South Korea. Shipping information is based on orders from the store's main country, which is defined as the one where the store generates most of its online revenue. In this case, it is in South Korea. Only stores that provide information about their shipping providers can be considered.

# Shipping service provider
1. CJ Logistics 64%
2. Lotte 9%
3. UPS 5%
The eCommerce market in South Korea

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