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Chungnam delivery app.- offering zero delivery fees
Using the Chungnam delivery application, 204 stores in Gyeryong-si achieved sales of KRW 300 million for three months
2021.11.01(월) 17:48:00 | CNnews (
chungnamdo@korea.kr)
▲ Chungnam delivery app.- offering zero delivery fees 1
Based on the public-private collaboration, the delivery application of Chungnam province with the lowest fees in the nation proved to help stores save on ordering and settlement fees significantly.
According to the province's announcement on October 28th, the Chungnam delivery app was launched in response to customers’ preference for noncontact delivery services amid the COVID-19 pandemic to support small businesses and promote the local economy last May.
Presently four cities and counties, including Gyeryong, Seosan, Nonsan, and Boryeong, are operating the app., and on October 28th, Hongseong and Dangjin will join, and in December, Asan will be added. The remaining cities and counties are scheduled to introduce the app in the first half of next year.
In Gyeryong-si where the app. began to be used on July 5th, 2021, 204 stores (48.8%) out of 418 stores in the city adopted the delivery app.
These stores received 12,725 (143 daily) orders from the delivery app. for three months until the end of September.
This equals 26% (53.6% daily) of the orders processed by other popular delivery applications.
The value of sales achieved through the Chungnam delivery app. reached KRW 319,902,000, and stores using the app saw their profits rise by KRW 63,395,000.
With existing delivery apps that charge an ordering fee of 18%, total delivery fees would have reached KRW 57,582,000.
However, as the Chungnam delivery app charges 0.9%, stores saved fees of KRW 54,703,000.
Moreover, in terms of card settlement fees, while existing delivery apps charge KRW 9,597,000, the Chungnam delivery app. charge KRW 905,000, less than one-tenth.
This substantial reduction of card settlement fees is largely attributed to zero fees for 64.4% of sales using local currency and the significantly lower card settlement fees of the Chungnam delivery app. (0.8%).
The difference between card settlement fees of existing apps and that of the Chungnam app. is KRW 8,692,0000. This difference goes to stores as profit.
A Chicken, a store in Gyeryong-si enjoyed fee savings of KRW 2,576,000 through the Chungnam app.
For the past three months, the store has received 552 orders via the Chungnam app., amounting to KRW 13 million in sales.
The store would have paid fees of KRW 2,340,000 to existing delivery apps. By using the Chungnam app., ordering fees drastically dropped to KRW 117,000.
As for the card settlement fees, the store paid 0.8% for sales (KRW 4,628,000) deducting the local currency transactions (KRW 8,372,000).
Card settlement fees the store used to pay (KRW 390,000) dropped to KRW 37,000, down by KRW 353,000.
The province plans to conduct consumer benefit promotions in seven cities and counties that adopted the Chungnam app. by the end of this year.
The function of the app. will be continuously improved to increase user satisfaction, and convenience and strategies to increase merchants will be developed and implemented.
