Korea extends beyond its renowned K-pop culture, boasting the status of the fourth-largest economy in Asia and the twelfth-largest globally as of 2019. In the e-commerce realm, expenditures surged to $128 billion in 2019, with projections soaring to $206 billion by 2024, reflecting a Compound Annual Growth Rate (CAGR) of about 10%. This underscores Korea's position as one of the most lucrative and rapidly expanding e-commerce markets worldwide. Furthermore, Coupang, a leading e-commerce entity in Asia and the foremost online retailer in Korea, offers significant prospects for international merchants seeking to tap into the burgeoning Coupang Marketplace.
Established in 2010, Coupang has been spearheading the evolution of e-commerce experiences. In the first quarter of 2021, Coupang witnessed a remarkable 74% year-over-year surge in net revenues, totaling $4.2 billion. Moreover, quarterly active customers escalated by 21% year over year, reaching 16 million, while the total net revenue per active customer surged by 44% to $262 during the same period. This robust and escalating engagement and loyalty among customers are further evidenced by consistently high spending propelled by repeat purchases. The proportion of spending derived from existing customers, defined as those initiating their first purchase with us in a previous year, has shown steadfast growth, rising from approximately 87% in 2016 to roughly 90% in 2020.
Becoming a seller on Coupang is a straightforward process. To begin, navigate to the Coupang Marketplace website and click on the "Sign Up" button.
Below is the list of necessary documentation for registration as a global seller:
1. Valid Business License: For sellers based in the US, submission of an EIN Confirmation Letter and Tax Form is required.
2. Proof of Identification: A valid passport or government-issued ID of the business owner.
3. Bank Documentation: Submission of a bank letter or statement displaying essential details such as the bank name, address, account holder, account number, and SWIFT code. It's imperative that the bank account holder's information matches that of the business entity.
4. Evidence of Business Ownership: Documentation demonstrating the relationship between the business owner and the business entity.
5. Verification of Contact Information: Submission of a phone bill that indicates either the company name or an individual's name associated with the company.
Coupang Marketplace offers Brands & Sellers the opportunity to showcase their products as third-party marketplace vendors on the platform. When customers place orders through Coupang, Sellers ship directly from their home country to the customers. This enables Sellers to tap into the Korean market using their existing operational infrastructure without requiring a Korean domestic business license or local bank account. Furthermore, Coupang facilitates settlements for Sellers in various currencies, including USD. Leveraging Coupang's extensive customer base and user-friendly app, businesses can effortlessly extend their global presence and introduce their products to Korean consumers. Additionally, there are supplementary advantages available for international sellers on Coupang Marketplace:
1. Flexible Solution for Sellers of Any Size: Coupang offers an Open API platform that enables seamless integration for listing products and managing orders within your existing systems. Alternatively, you can utilize WING, Coupang's seller management portal, for streamlined business operations on the platform, facilitating efficient business growth.
2. Support from Marketplace Aggregators: Various marketplace aggregators facilitate listing products on Coupang through their platforms. If you're utilizing these providers to manage your business across multiple marketplaces, you can effortlessly import your listings to your Coupang store, expediting the selling process.
3. Assistance from Service Providers: Whether you're new to selling in Korea or lack proficiency in Korean, Coupang Service Provider Network (SPN) offers a roster of partners who can assist with delivery logistics, translation services, and crafting impactful Korean content to enhance sales, providing valuable support for sellers.
In conclusion, venturing into the Coupang Marketplace presents a promising opportunity for international sellers to access the dynamic and rapidly expanding e-commerce landscape in Korea. With its impressive growth trajectory, robust customer engagement, and user-friendly platform, Coupang offers a conducive environment for businesses of all sizes to thrive. From flexible integration options to support from marketplace aggregators and service providers, Coupang ensures a seamless and efficient selling experience. To embark on this journey and explore the vast potential of the Korean market, contact us today for guidance and assistance in navigating the process of selling on Coupang Marketplace.