[Sponsored Report] Int’l eBay service helps small firms grow sales

A staff member from eBay Korea explains its EGS service to partner companies.

Small- and medium-sized companies are moving into the world market thanks to consignment sales support provided by eBay Korea.

The company, which operates Auction and Gmarket in Korea, has also run eBay Global Sourcing (EGS) to support consignment sales since 2010. The service’s clients include smaller companies that require shipping and sales support to sell products overseas. This system secures distribution routes and manages product stocks.

The help has proved especially useful for companies that sell very popular or especially heavy products in the United States because eBay has storage facilities there.

As the overseas sales consignment process became more established, eBay Korea attracted 100 partner companies in 2011 and reached 300 this year - growth of 200 percent.

Together with the stable distribution channels and excellent shipping service, the high quality of Korean products has led to sales increases for small- and medium-sized companies in Korea.

A good example is Taesang C&I, which distributes hardware, speakers and other devices for computers. Through eBay, the business has expanded and achieved monthly sales of 1 billion won ($912,000).

In particular, it achieved 20 to 30 percent sales growth in just two years by targeting the Australian market, in which online shopping is well developed and imports of industrial products are high due to the country’s small manufacturing industry.

Workers with eBay Korea’s EGS system provided consulting on which products would be appropriate for the market and also suggested the development of new products as the market evolved.

With this help, Taesang C&I designed an LED monitor in partnership with a local company and is distributing it only on eBay while aggressively marketing overseas.

Separately, Hallyu products are also proving quite popular as well. According to eBay Korea EGS, Hallyu product sales in September increased 33 percent compared to August.

Together, the products sold through eBay’s system are helping to prove the high quality of Korean products around the globe.

by Lee Ji-hyun [concordia@joongang.co.kr]