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