Sneaker resale marketplace SoldOut jettisoned its free shipping policy to build a cushion for further investment and so capitalize on the growing interest in secondhand trading in South Korea, commentators in the industry said.
Operated by online fashion service Musinsa, which was founded in 2001, SoldOut has long maintained free shipping in line with business strategies pursued by other similar marketplaces in South Korea.
From next month, the marketplace will charge a buyer a shipping fee of ₩2,000 ($1.5 U.S.), which is low compared to ₩3,000 introduced by its key competitor, luxury goods marketplace Kream.
Kream was reported to be the first to break with the tradition of free shipping to cope with its massive losses. It also raised a trading fee, which is not part of the near-term plan of SoldOut.
“We recently invested in operating infrastructure to increase customer service satisfaction. There are no plans to raise fees,” an official of SoldOut told ChosunBiz.