The logistical advantage of the South Korean company, Coupang – the first company to implement seven-day delivery service in that country – has been diminished by competitors who are implementing the same business model.
Coupang Inc., which has long dominated the domestic logistics sector with its own service network, now sees its competitive advantage diminish.
According to industry sources, e-commerce companies that previously struggled to compete with Coupang’s logistics efficiency have significantly benefited from the launch of delivery services every day of the week.
New era in South Korean deliveries
An example is CJ Logistics Corp., the largest courier company in Korea, which recently announced the launch of O-NE, allowing deliveries on Sundays and holidays. This initiative enabled major e-commerce platforms, which previously did not deliver on weekends, to offer shipments seven days a week, matching Coupang’s logistics model.
Gmarket Inc., another logistics company in that country, also quickly adopted the seven-day delivery system, followed by 11Street, which introduced same-day delivery service on weekends on February 22.
Market Impact
The service has been particularly well received by sellers of consumer goods and fashion, with food suppliers accounting for 24.7% of new registrations in January and February, according to CJ Logistics data.
“Although still in its early stages, we are already seeing a significant increase in the volume of deliveries,” said a Gmarket representative.
With the proven effectiveness of deliveries seven days a week, other logistics companies such as Hanjin and Lotte Global Logistics are now considering similar services.
Meanwhile, Naver has intensified its competition with Coupang by renaming its delivery service as N Delivery.
“Since launching Sunday deliveries in April 2024, transaction volume has increased by 80%,” said a Naver representative. “We anticipate further growth after the rebranding.”
This transformation in the South Korean logistics landscape represents a significant shift for the country’s e-commerce market, where Coupang had established a considerable advantage with its Rocket Delivery model. The new competitive reality promises to benefit consumers with more options for fast delivery, while online retailers seek ways to differentiate their services in an increasingly competitive market.
With information from pulse.mk.co.kr
