– Selected asset management services contribute to strengthening fund liquidity and management stability.
– Expanding seller choice through the spread of multi-homing, confirming the effects of increased sales and risk diversification.
The Platform SME Research Center at Kookmin University (hereafter, the Center) published the report, "Platform Strategies for Digital Merchants: Analysis of Selected Assets and Multi-Homing," on the 31st. This report empirically analyzes platform utilization strategies for sustainable growth of "digital merchants," business owners who conduct business activities based on digital platforms, and proposes policy directions based on this analysis.
The report in-depth analyzed the current state of "pre-settlement services" and "multi-homing," which have emerged as key strategies for digital merchants. Pre-settlement services, unlike the standard settlement schedule, allow customers to receive payment before the purchase is finalized, while multi-homing refers to switching platforms or using multiple platforms simultaneously. Professor Lee Geon-woong's research team at Korea University analyzed the effectiveness of pre-settlement services, while Professor Yoo Byeong-jun's research team at Seoul National University analyzed the current state of multi-homing.
Professor Lee Geon-woong's research team conducted a survey of 631 online sellers, and found that approximately 70% of respondents said they needed to have at least 10 million won in cash to sell online, and 63% said they were using loans to secure funds.
54.7% of respondents reported using pre-settlement services, citing key benefits as facilitating new product markets and inventory management (33.9%), covering operating and fixed costs (32.2%), and predictable funding (14.0%). Furthermore, pre-settlement service users were found to be able to sustain their businesses for an average of 21.7 days longer without additional cash inflow than non-users. Pre-settlement services are believed to contribute to improved cash flow stability and cash flow predictability for digital merchants.
Professor Lee Geon-woong stated, "The pre-settlement service is a key financial solution that enhances the management stability of sellers and lays the foundation for business diversification and expansion." He added, "Policy support is needed to promote the development and utilization of the pre-settlement service."
Professor Yoo Byung-jun's research team surveyed 305 online sellers on their multi-homing practices. The results revealed that 76% of respondents were multi-homing, using an average of 2.84 platforms simultaneously. Respondents considered platform characteristics, such as fees, advertising, and exposure, when selecting which platform to open their store on.
More than 80% of multi-homing sellers reported that multi-homing helped increase sales and mitigate risk, with an average perceived sales growth rate of 20.56%. More than 85% of single-platform sellers planning to multi-home expected multi-homing to increase sales and mitigate risk, with an average expected sales growth rate of 18.44%.
Professor Yoo Byung-jun stated, “The spread of multi-homing is fostering competition between platforms and creating a structure that allows sellers to make strategic choices,” adding, “A policy approach that respects autonomous competition between platforms while maintaining a fair competitive environment is necessary.”
This report can be found on the Platform SME Research Center website (https://platformresearchnetwork.kr).
Meanwhile, Kookmin University's Platform SME Research Center is a specialized research institute established to support the growth of digital merchants and foster a healthy platform ecosystem. It continuously conducts data analysis, policy recommendations, research, and educational programs targeting digital merchants.
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