Despite the fact that it was a tough year for e-commerce platforms, particularly in emerging markets, n11.com seems having slipped through the bottleneck very easily. A membership-based e-commerce marketplace founded as a partnership by Turkey’s Dogus Group and South Korean SK Group in March 2013, n11.com announced that the total trade volume has reached almost 120M USD in just 9 months.
The number of shops operating under n11 is impressive, reaching 7000 by the end of December 2013 offering around 2.8 million articles all together. According to the infograph released by the company, the marketplace is visited by an average of 5 million unique IPs a month. Average basket value has been around 200 USD so far, most of which paid in an average of 8.5 installments, a widespread practice in Turkey exercised mainly via banks’ bonus and installment credit cards.
So, you may ask, what is the secret is behind this success. It is simply the price that apply to renting a shop under n11, which is… zero! The company lets the small businesses that satisfy eligibility requirements open all sizes of stores.
The income model on the other hand relies mainly on two streams of revenues: One coming from commissions charged during transactions, and the second the fees for extra services like renting n11 studio for product photo-shootings and enrolling in e-commerce and business development trainings.
With the global economy giving signs of recovery and increasing popular trust in e-shopping, the 50-50 partnerships of two conglomerates looks destined to succeed capitalizing on the small businesses’ affection. SK Group is one of South Korea’s largest group of companies with 113 offices worldwide and more than 70,000 employees. It also runs South Korea’s largest mobile phone operator, SK Telecom. Their partner in Turkey, Dogus Group is well known for its influential media channels including televisions, radioss, magazines etc. It also owns the third largest bank in Turkey.