Amazon unveils free shipping offer for Korean users

Accessible via the Amazon mobile app and website, Amazon's free shipping offer applies to purchases of $49 or more for delivery addresses in Korea.

Amazon's website announces free shipping to Korea. [SCREEN CAPTURE]

Amazon has rolled out its free shipping promotion for consumers in Korea.

Accessible via the Amazon mobile app and website, the offer applies to purchases of $49 or more for delivery addresses in Korea. The free shipping, however, can only be applied to "qualifying" items, though Amazon did not provide specifics on its qualification criteria.

This isn't Amazon's first venture into free shipping for Korean customers.

Previously, customers spending $90 or more were eligible for free shipping in July 2018. A similar offer, for a $99 or more spend, appeared in November 2020.

Amazon partnered with the domestic e-commerce platform 11Street in 2021, selling its products on the 11Street website under the name Amazon Global Store. Subscribers to SK Telecom's paid membership, Universe Pass, are eligible for free shipping on all Amazon purchases, while non-members have to spend 28,000 won ($20) or more for the same benefit.

"Amazon's free-shipping promotion operates independently of 11Street," an 11Street spokesperson said. "Our collaboration on offering free shipping for Universe Pass members on Amazon purchases remains intact."

Amazon's offer of free shipping for Korean customers comes amid the rapid rise of Chinese e-commerce platforms like AliExpress and Temu in the Korean e-commerce market, valued at over 200 trillion won according to Statistics Korea data.

AliExpress announced a 1.5 trillion won investment plan for establishing logistics centers in Korea, followed by Coupang's announcement of creating a nationwide same or next-day delivery service with a 3 trillion won investment.

There have been suggestions that Amazon might bypass 11Street and directly enter the Korean market, mirroring the strategy of Chinese platforms.

Meanwhile, 11Street, aiming to reach the top spot in domestic online shopping through its collaboration with Amazon, has slipped to fourth place in terms of Monthly Active Users (MAU) as of March, trailing behind Coupang and even Chinese e-commerce players AliExpress and Temu. Currently listed for sale, 11Street faces challenges in finding potential buyers.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]