SEOUL, Nov. 21 (Korea Bizwire) – As November 24 or “Black Friday” inches closer, local retailers are rolling out limited time discounts in what is expected to be a boom year for overseas direct purchases.
Overseas direct purchasing companies enable customers to procure goods at local prices and have their products shipped directly to their home addresses. The reason for doing so comes down to price discrepancies between countries. One example is the iPhone X 256 GB, which costs 1.63 million won in South Korea, but 1.43 million won in the United States.
Overseas direct purchases (ODP) of electronics like the iPhone are expected to play a big part in the surge in activity this year. According to online ODP store Malltail, sales generated from this year’s Black Friday will exceed those from last year’s by 10 percent. Besides the iPhone, popular shopping targets will be “refurbished items and products under the $200 customs tax ceiling” per Malltail.
A spokesperson for the company said, “Not only from Black Friday, but we are looking at sales growth from overall overseas direct purchasing to be from 10 to 15 percent this year.”
The Korea Customs Service also provided figures that revealed last year’s ODP revenues grew by 7 percent over the year before to amount to $1.63 billion. The number of purchases also increased by 10 percent.
Local retailers will throw their hats into the ring to divert a portion of the spending flurry their way. E-mart has already initiated a month-long “Black November” sales event, offering products like eggs and shampoo at steep discounts.
Gmarket, Auction and ShinsegaeMall are also instituting either weeklong or one-day sales specials. From foreign brand TVs and imported sanitary pads to frying pans and winter coats, all for double digit discounts, the options appear to be endless.