Coupang is one of South Korea's largest e-commerce companies, often compared to Amazon. It was founded in 2010 by Bom Kim and has grown rapidly, becoming a dominant player in the Korean e-commerce market. Coupang offers a wide range of products including electronics, household goods, groceries, and more, with a focus on fast delivery. They operate their own logistics network, allowing them to offer same-day or next-day delivery for many items, which has been a key factor in their success.
Before delving into this article, it might be beneficial to refer to the following piece.
How to sell in Coupang Marketplace
To boost conversion rates on Coupang, sellers can employ two strategies: 1) Ensure their product is easily discoverable by customers, and 2) strive to become the top choice for a given item. Your product must appear prominently when customers search for it, ideally on the initial search results page. In cases where multiple sellers offer the same product, yours should be positioned as the preferred choice, featured above competing listings. Coupang favors sellers who consistently receive positive feedback from customers, as a satisfying shopping experience is paramount to buyers. To understand the specific elements that contribute to a positive shopping experience, refer to the checklist provided below.
Ensure that your product aligns with customer demand; selling sought-after items gives you a competitive advantage. Listing your full inventory is advisable to provide bundle delivery and maximize benefits. Additionally, if a product sought by customers isn't listed on Coupang, being the first seller to list it can position you as the top choice. Coupang often notifies sellers via email about brands or products in demand yet unlisted; regularly check your registered email for insights on which products to list.
Emphasizing the importance of search cannot be overstated. Typically, customers search, click, and make purchases. They locate desired products, compare options, and proceed with buying. To ensure your products appear in customer searches, consider the following questions:
- Have you utilized effective search terms?
- Have you configured both purchase and search options?
- Have your categories been precisely specified?
With filter search becoming more prevalent, it's crucial to expand search options by including product details like material, quantity, and color. Omitting these details, even if they're not mandatory, diminishes your chances of being found by customers. Remember: providing more information increases your visibility.
Do you maintain adequate inventory levels? Regardless of a product's popularity, if it's out-of-stock (OOS), customers can't purchase it, and Coupang won't designate it as a top item. Maintaining appropriate stock levels is crucial to retaining your item's top status. Monitor your inventory status by accessing WING > Manage Products > Product Notifications and reviewing the [Out-of-Stock] and [Almost Out-of-Stock] tabs. Ensure you replenish stock for products expected to experience increased sales.
If you believe customers are solely seeking inexpensive products, you're mistaken. It's a common misconception that lowering prices is the only path to securing the top spot for your product. Customers aren't solely focused on low prices; they seek value. While they may opt for the cheapest option when presented with similar products, they prioritize a reliable shopping experience over minor price differences. Coupang designates sellers who offer stability and customer support as item winners, even if their prices are slightly higher. To gauge the price disparity between your product and the item winner, navigate to WING > Product Notification and review the [Non-Item Winner] tab. Remember, the final price encompasses shipping costs. Lowering product prices but inflating shipping fees can deter customers and harm sales, as shoppers are highly sensitive to shipping charges.
Through experimentation conducted on Coupang, we made an intriguing discovery. Transitioning from paid shipping to conditional free shipping resulted in a notable uptick in sales by 32%, with a concurrent increase of 38% in average visitor numbers. (Test duration: 5 weeks spanning June and July 2018; involving 233 Coupang sellers) This suggests a significant portion of customers are inclined to add additional items to their cart to qualify for free shipping. However, to prompt customers to take this action, it's essential to have a diverse array of products available. If there aren't other items to add to the cart for free shipping eligibility, customers may abandon their purchase altogether. This underscores the importance for sellers to offer free shipping and list their full inventory.
As a seller, it's essential to recognize that customers can be quite demanding. This underscores the importance of promptly addressing issues to avoid potential problems like stock shortages or defects. Responding swiftly to customer inquiries is just as vital as ensuring your product detail pages are visually appealing. Typically, customers rely more on product reviews than the details provided on the page when making their purchasing decisions. Therefore, it's crucial to actively manage product reviews. Your dedication will ultimately lead to consistent sales and payoff in the long run.
In conclusion, becoming a successful seller on Coupang involves a strategic approach that focuses on meeting customer expectations and optimizing various aspects of your selling process. By ensuring that your products are aligned with customer demand, easily discoverable through effective search optimization, and competitively priced while offering value, you can enhance your chances of success on the platform. Additionally, maintaining sufficient inventory levels, offering free shipping options, and providing prompt responses to customer inquiries are essential elements for maximizing sales and maintaining a positive seller reputation. As your company endeavors to sign up as a global seller on Coupang, implementing these strategies will help you navigate the platform effectively and achieve steady sales growth.
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