Expanding into the Korean market through sales on the Coupang Marketplace.
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.
About
Korea Coupang
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's
Distinctive Edge: Revolutionizing Logistics and Customer Experience
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
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.
Elevating Customer Experience: The Impact of
Coupang's Obsession with Service
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.
Food
Selections
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
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.
Becoming
a Vendor on the Global Marketplace
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.
Documentation
A
copy of your business license
proof
of your ID
the
proof of who owns your business
Provide the contact person's name and
phone number for verification
A bank letter or statement showing your
account in the same name as your business license
Do you want to be a successful seller on Korea
Coupang?Please refer to this article “How to Become a Successful Seller on Coupang."
About the fees & payments?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.
Conclusion
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.
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