Korea e-commerce firms push global, delivery upgrades to reverse losses

South Korea’s major e-commerce platforms — including Gmarket, SSG.com and 11Street — are ramping up memberships, overseas expansion and faster delivery services in a bid to turn around years of losses.

According to industry data released Thursday, the three companies are focusing on strengthening customer loyalty through membership programs while boosting profitability via global expansion. Last year, operating losses reached 121.7 billion won ($82.2 million) at Gmarket, 117.8 billion won at SSG.com and 39.6 billion won at 11Street.

Gmarket is betting on global markets as a key growth engine, helping Korean sellers expand overseas. After forming a joint venture with Alibaba Group, it entered five Southeast Asian countries, including Malaysia, via Lazada starting in October. Transactions through Lazada surged 490 percent in November–December compared with the previous two months, while sales in March rose 150 percent from two months earlier. The company plans to increase the number of products linked to Lazada by 2.5 times this year and expand into West Asia and Europe.

The Lazada push has also lifted Gmarket’s overall transaction volume, which rose 1–2 percent year-on-year in January and February before accelerating to 12 percent growth in March.

Gmarket also plans to strengthen profitability by enhancing its membership program. It will launch a new “Ggok Membership” this month offering up to 70,000 won in monthly rewards, alongside a co-branded credit card.

SSG.com is reinforcing product competitiveness based on its parent Emart and expanding delivery services. First-quarter sales from its “SSG Traders Delivery” rose 38 percent year-on-year, while revenue from its one-hour quick commerce service “Baro Quick” increased 67 percent from the previous quarter. The company plans to expand its quick delivery hubs from 84 to 90 locations this year and further refine delivery time slots. It also launched the “SSG Seven Club” membership in January to grow its loyal customer base.

Meanwhile, 11Street is targeting a turnaround by expanding cross-border e-commerce in China. In partnership with JD.com, it plans to open a dedicated “11Street store” on JD Worldwide’s main page in mid-June. The platform will also purchase products from Korean sellers and handle customs clearance and local delivery in China to boost transactions.