Gmarket Global to expand fresh food business in collaboration with SSG.com

SSG.com's logistics center in Gimpo, Gyeonggi Province / Courtesy of SSG.com

By Kim Jae-heun

Gmarket Global is strengthening its fresh food business overnight delivery service to create synergy with SSG.com within Shinsegae Group, company officials said on Thursday.

Gmarket Global, which runs two open-market platforms Gmarket and Auction, is preparing to launch "Smile Fresh," a fresh food delivery service that sends customers' online purchases overnight.

After Shinsegae acquired Gmarket Global, formerly known as eBay Korea, last year, the retail giant has been searching for ways to strengthen its retail business by creating synergy between its online shopping mall SSG.com and Gmarket Global.

Of SSG.com's overall sales, 40 percent to 45 percent are generated from its fresh food business. For Gmarket Global, 70 percent to 80 percent of its sales are estimated to come from the non-food sector. Combining logistics centers the two e-commerce affiliates are expected to remedy each other's shortcomings.

"Shinsegae is reviewing ways to integrate our logistics centers of Gmarket Global and SSG.com. We are also thinking about utilizing E-mart's fulfillment centers for Gmarket and using Gmarket's fulfillment centers for SSG.com," a Shinsegae official said.

Gmarket Global started its overnight delivery service in February to secure competitiveness in the local e-commerce market, but it sold non-food products mainly due to a lack of logistics centers outside of the capital area.

In order to expand its fresh food delivery service across the country, Gmarket Global needs more logistics centers, but it currently owns only a limited number of them in Gyeonggi Province and Incheon.

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