The 21st World Korean Business Convention, held for the first time overseas at the Anaheim Convention Center, has been deemed a success beyond expectations. With more than 500 companies participating and showcasing their products at 650 booths, the Korea Daily will introduce the companies and entrepreneurs that attracted the attention of investors and visitors over five articles. -Ed.
3. KZONE: Remex Management
A man who devised a solution for handling malicious return products while working as an Amazon seller has garnered attention.
Sungsu Kim, the Chief Executive Officer of KZONE, spearheads a reverse logistics management platform named remexreturn.com. Kim clinched the top prize in a startup pitching contest at the World Korean Business Convention in OC.
Kim explains that most domestic sellers on Amazon in the U.S. maintain warehouses, mitigating issues with returns. However, international sellers frequently discard returns due to the burdens of storage, shipping, and other expenses. Astonishingly, 33% of all Amazon returns are discarded, culminating in an annual loss of $8.6 million.
“After earning my degree in international trade from Liberty University in Virginia, I ventured into selling products on Amazon, mainly dealing in goods manufactured in China. The business flourished, but with the surge in sales came an increase in returns, ushering in issues like malicious inventory and dwindling profit margins. Concerned for sellers grappling with returns, I initially began managing returns manually for friends and acquaintances. However, as the demand for my services swelled, driven by positive word-of-mouth and increased requests from renowned sellers, I initiated the Remex platform, marking the commencement of my comprehensive business venture.”
Kim inaugurated KZONE in 2020, envisioning the “maximization of the value of malicious inventory.” He inaugurated the operation of the Remex platform services in early 2022.
Via the Remex platform, sellers can synchronize their Amazon accounts. When a return materializes, items are automatically directed to the KZONE warehouse. The collated returns are then systematically allocated to second-hand stores, functioning on a business-to-business model. According to Kim, a staggering 250,000 products have returned, boasting a remarkable 97% resale rate and accruing a resale value of $1.5 million.
Kim added, “We refrain from imposing return storage fees or subscription charges, opting to levy a commission solely on the final sales, ensuring affordability.” Presently, the Remex platform enjoys patronage from over 100 companies spanning seven countries, including Korea, the U.S., Canada, China, Hong Kong, India, and Pakistan.
Focusing on expansion, Kim revealed, “Our objective is to procure funds to transition our headquarters from Pangyo, Gyeonggi Province, South Korea, setting our sights on a U.S. office in Dallas, Texas. Following a preceding investment of 500 million won ($372,000) from Korea, we aim to draw an additional $1.2 million in investments from the U.S. via this competition.”
Kim outlined their strategy: “Our premier aim encompasses the establishment of warehouses throughout the U.S., enhancing operational efficiency. Subsequently, we plan to broaden the Remex platform services. We extend our reach to sellers in countries like Japan and several European nations, including the United Kingdom, where Amazon maintains a strong presence.”
BY NAKI PARK, JUNHAN PARK [naki@koreadaily.com]
