If you aim to engage in commerce with consumer goods in South Korea, understanding how to collaborate with Coupang is crucial. Additionally, it would help if you decided whether to operate domestically or internationally. If you lack a local partner in Korea, utilizing Coupang Global Marketplace presents an attractive opportunity for accessing the Korean food, beverage, and fashion market.
Coupang is a South Korean e-commerce company that was founded in 2010 by Bom Kim, a Harvard Business School dropout. The company's name is derived from the Korean word "쿠팡," which means "rocket."
Coupang started as a daily deals platform, similar to Amazon, offering discounted products and services to customers in South Korea. However, it quickly evolved into a full-fledged e-commerce marketplace, offering a wide range of products including electronics, fashion, beauty, groceries, and more.
One of Coupang's key innovations is its logistics infrastructure, particularly its own delivery network known as "Coupang Logistics." This infrastructure includes automated warehouses, fulfillment centers, and a large fleet of delivery vehicles. Coupang's focus on improving delivery speed and reliability has been a significant factor in its success, allowing it to offer same-day and next-day delivery services to customers across South Korea.
Over the years, Coupang has attracted significant investment from various sources, including SoftBank, Sequoia Capital, and BlackRock, among others. The company has used this funding to fuel its expansion and innovation efforts.
In 2014, Coupang launched its "Rocket Wow" service, which offers guaranteed delivery within 24 hours for select items in certain areas. This service further solidified Coupang's reputation for fast and reliable delivery.
In 2018, Coupang expanded its reach beyond South Korea by launching Coupang Global, an international shipping service that allows customers in other countries to purchase products from the Coupang platform.
In 2021, Coupang made headlines with its highly anticipated initial public offering (IPO) on the New York Stock Exchange (NYSE), raising over $4 billion and becoming one of the largest IPOs by an Asian company in the United States.
As of my last update in January 2022, Coupang continues to be a dominant force in the South Korean e-commerce market, known for its innovative technology, extensive product selection, and efficient logistics operations.
Coupang stands out among other platforms primarily due to its exceptional logistics services and unwavering dedication to enhancing the customer experience. The founder's vision was to tackle issues such as lengthy delivery times, costly shipping with restrictions on products and cutoff times, and excessive packaging waste alongside unrestricted returns. The solution emerged as an end-to-end integrated system utilizing state-of-the-art technology to impress both customers and vendors alike. Employing a data-driven approach, Coupang ensures that customer and vendor satisfaction is consistently monitored and enhanced throughout every stage of the process, resulting in significantly improved tracking efficiency. In essence, consumers are provided with a premium purchasing experience at a reasonable cost.
Rocket Wow is a subscription-based service akin to Amazon Prime, priced at approximately €2 monthly. It encompasses complimentary deliveries and returns, exclusive discounts on select items, standard one-day delivery, and the added perk of receiving Rocket Fresh products (such as food and beverages) by 7 am for orders placed before midnight.
Coupang's relentless dedication to enhancing the customer experience is evident through the remarkable impact on spending observed among Rocket program members. This underscores the effectiveness of prioritizing loyal customers. Korean clientele particularly appreciates the convenience and swift delivery, even on weekends and holidays. Moreover, features like Coupang Pay and the extensive use of reusable packaging, accounting for 75% of materials, contribute to the overall appeal of shopping on the platform.
Coupang boasts an extensive array of fresh produce and international cuisine sourced globally. Additionally, Coupang Eats offers convenient delivery options from a variety of restaurants. Amid the pandemic, the platform introduced live-streamed content covering cooking tutorials and entertainment, coupled with product sales.
Coupang's Global Marketplace was established to meet the increasing need for premium imported goods, providing numerous benefits for both buyers and sellers. While cross-border selling can be lucrative for international brands and serve as a valuable market testing avenue, certain product categories are restricted. In the realm of "food and beverage," prohibited items include refrigerated or frozen products, alcohol, cigarettes, and medicine.
We can assist you in registering as a global seller on Coupang through Pearson Partners Korea.
Feel free to reach out to us for inquiries.
Please refer to this article “How to Become a Successful Seller on Coupang."
When it comes to selling on the Global Marketplace, the costs are quite economical compared to other Asian marketplaces like Alibaba’s T-mall, jd.com, or Shopee. The commission rates vary by category, typically falling between 4% to 11%. Additionally, there are no additional fees involved. Vendors receive their earnings from deliveries monthly and have the option to receive payments in major currencies such as GBP, EUR, or USD.
Entering the Korean market through sales on the Coupang Marketplace presents a lucrative opportunity for global sellers. With its innovative logistics infrastructure, extensive product selection, and commitment to customer satisfaction, Coupang continues to dominate the South Korean e-commerce landscape.
Our consulting company, Pearson Partners Korea, is here to facilitate your registration as a global seller on Coupang and guide you through the process. As you consider this endeavor, it's important to understand the fees and payment structure, which are notably competitive and transparent. By leveraging our expertise and the resources provided in this article, you can position yourself for success in the thriving Korean e-commerce market.