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 who have been implementing the same business model.
Coupang Inc., which long dominated the domestic logistics industry with its own fulfillment network, is now seeing its competitive advantage erode.
According to industry sources, e-commerce companies that previously struggled to compete with Coupang's logistics efficiency have benefited significantly from the launch of 7-day delivery services.
New era in South Korean deliveries
An example is CJ Logistics Corp., the largest parcel delivery company in Korea, which recently announced the launch of O-NE, enabling deliveries on Sundays and holidays. This initiative enabled the main 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 the country, was also quick to adopt the seven-day delivery system, followed by 11Street, which introduced a same-day delivery service on weekends on Feb. 22.
Market impact
The service has been particularly well received by consumer goods and fashion sellers, with food suppliers accounting for 24.7% of new sign-ups in January and February, according to data from CJ Logistics.
“While it is still in the early stages, we are already seeing a notable increase in delivery volume,” a Gmarket representative said.
With the proven effectiveness of seven-day-a-week deliveries, other logistics companies such as Hanjin and Lotte Global Logistics are now considering similar services.
Meanwhile, Naver has stepped up its competition with Coupang by rebranding its delivery service as N Delivery.
"Since the launch of Sunday deliveries in April 2024, the transaction volume has increased by 80%," said a Naver representative. "We expect further growth after the brand change."
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 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
