Cafe24 said on Wednesday that its "brand dropshipping" has been expanding its ecosystem since launch. Launched in February, brand dropshipping has secured more than 1,500 participating stores and more than 9,000 active supply products available for immediate shipment.
Brand dropshipping is a service in which a seller lists a supplier's products on the seller's online store. When an order is placed, it is automatically forwarded to the supplier, which ships the product directly. Sellers can choose and sell products without purchasing costs and inventory burdens. Suppliers can also secure additional distribution channels through a network of sellers.
Brand dropshipping is characterized by brands that run direct-to-consumer (D2C) online stores on Cafe24 participating directly as suppliers. While typical dropshipping sells products from wholesalers or third-party suppliers, Cafe24's brand dropshipping registers products held by brands operating their own stores as supply products and lets other Cafe24 sellers sell them without separate purchasing. Through this, suppliers can secure additional distribution channels and sellers can easily secure verified brand products.
Of the about 1,500 participating stores, about 1,200 are sellers and about 900 are suppliers. About 500 stores act as both seller and supplier.
The company explained that matching efficiency is high because supply products are centered on items available for immediate shipment with actual inventory. Of about 9,000 active supply products, 81.7 percent have been actually sourced, and when a supplier registers a product, sellers are naturally connected.
Participating categories include fashion and apparel (24.89 percent), stationery and office supplies (21.84 percent), food (9.42 percent), living and health (8.92 percent), fashion accessories (8.74 percent), and furniture and home decor (8.58 percent), as product groups expand.
Cafe24 plans to expand the brand dropshipping ecosystem through feature upgrades and service stabilization. It is currently building an automated ordering process that connects sellers and suppliers. It plans to complete a structure in which the entire process, from order placement to supplier delivery and shipping, is automatically handled within the platform. It will also push support for global delivery so that products sourced through brand dropshipping can be sold to overseas customers.
Cafe24 CEO Jae-seok Lee (이재석) said, "Brand dropshipping is a service focused on creating a distribution environment where sellers and suppliers can grow together." He added, "It is establishing itself as a new distribution method based on connections between brands within the Cafe24 ecosystem."