With electronic commerce booming in the region, logistics is now emerging in Korea as one of the most important elements for the success of the Internet shopping mall businesses.
Industry observers said that when customers receive products later than the promised dates, the credibility of online malls would be hurt and this will lead to sales decrease. So, local cyber shopping malls are keen on improving their logistics center for a greater
reliability as well as to reduction in delivery costs.
Metaland, one of the leading Internet shopping malls in Korea which was
launched in 1997, plans to build its own logistics center by the
first half of next year.
The company is expected to complete an integrated management system
controlling the whole process from sales to delivery of products in
order to maximize the efficiency of its shopping mall operation.
Hansol CS Club, one of the market leaders which is run by Hansol CSN, is
the only cyber mall that has its own logistic center in Korea.
According to Hansol CSN, it has a large logistic center in Seoul which
covers Seoul metropolitan area and the neighboring region; it delivers ordered products from 14 regional delivery points throughout the nation.
The delivery work is handled by Korea Express Ltd., the largest transportation
firm in the country. The company offers an Internet delivery
information service called ‘Logis Club‘ that enables its customers to check real-time
where the products they ordered are on the current delivery routes.
Currently, Hansol CS Club has nearly 400,000 members, and the number is
increasing by about 4,000 daily. The Internet mall, enjoying a daily
sales turnover of more than 400 million won (about US$333,000), expects that
its clients would rise to 1 million by the end of this year.