Seoul, South Korea - According to a New York Times report, the COVID-19 pandemic has accelerated the growth of e-commerce.
In the United States, e-commerce's share of retail sales grew from 12% to 16% in just 12 weeks between March and June 2020, a shift that previously took eight years.
While Amazon's share price increased 1.74 times between January 3 and December 31, 2020, Shopify's share price increased 2.8 times during the same period.
Many third-party sellers have begun using Shopify's platform to create independent e-commerce sites rather than relying on Amazon's fulfillment services.
According to BCG, e-commerce accounted for 26.2 percent of the total retail market in South Korea in 2019.
The e-commerce sector is divided into three categories: general merchandise, led by the legacy e-commerce giants; grocery e-commerce; and beauty and fashion.
Café24, a South Korean e-commerce solutions provider, leads the market with a 63% share.
In 2019, the company reported revenue of KRW 217.2 billion ($200 million) and operating profit of KRW 9.8 billion ($9 million).
Café24 hosts 1.8 million e-commerce sites on its platform and is one of the partners of Facebook Shops.
The company's average revenue per user (ARPU) is $191, compared to Shopify's $786. Café24 offers 236 paid and free applications, while Shopify provides 5,484.
Café24 offers fulfillment services through its partner and subsidiary, Fastbox.
Starting in 2021, the company has partnered with Hanjin Group to provide fulfillment facilities at Incheon International Airport.
Shopify will launch a dedicated Korean website in June 2020 and has partnered with KG Inicis for payment processing.
The company's expansion into the Korean market could create new competition for Café24.
