Boom times for online shopping firms

Sales of major local department stores have been showing sharp declines since last year due to frozen consumer sentiments. Meanwhile, businesses that sell and loan used equipment or give some cash back on purchases are having the times of their lives.

Internet Auction Co., an online auction company, said that deals for secondhand goods for this month account for 15 percent out of total transactions, compared to 5 percent last year.

"Office appliances and computers are on sale as a lot of companies close their business," an official at Internet Auction said.

Esale Inc., another Internet auction company, said more than 30 percent of transactions are focused on used goods.

Thrunetshopping Inc., an online shopping mall offering 5 percent to 10 percent of cash back to its purchasers, says that business is booming.

"We expect to post 400 million won ($340,000) in sales this month, two times more compared to October last year," an official at Thrunetshopping said.

"As the economy shows downturn, many people are changing their consumption patterns," the Thrunetshopping official said.

Point Park Ltd., another Internet cash back firm, also said its sales have increased by 20 percent to 30 percent this month more than December last year.

R&Tech Corp., an Internet shopping mall that lends products to its members, says its membership rolls have increased since last November.

"Users are able to borrow the newest computers for 72,000 won for three days," an official at the company said. "We lend various goods, from toys to digital home appliances, such as camcorders and digital cameras."

The official noted the company has started to lease 1 million won worth of treadmill machines. Customers can rent a machine for 130,000 won per month.

Wearbaby Co., an online company that rents birthday and christening costumes for infants, said monthly sales have increased by 30 percent since last October.

"These costumes cost a lot of money for just one day," said Cho Sang-won, the chief executive of the online company. "Instead, we only charge 18,000 won to 30,000 to borrow garments for a day. This is, after all, a very important event in their child's life.

by Choi Ji-young