Coupang is one of the largest cross-border e-commerce platforms in South Korea. It was established in 2010 and currently has more than 20 million users. Coupang has become the largest online retailer in South Korea in the first quarter of 2020. At the same time, Coupang has also become a lot Chinese sellers open the "golden key" to the Korean e-commerce market.

Next, Steven, Coupang's key account manager, will analyze South Korea's 100 billion U.S. dollar market and Coupang's latest investment policy.

South Korea Market Overview: The fastest growing country in the world and the highest e-commerce penetration rate

Thanks to South Korea’s developed economy, the share of e-commerce retail sales has increased by an average of 27% per year in the past three years, while traditional retail has fallen by an average of 3% per year. South Korea is currently the country with the fastest growth rate and the highest e-commerce penetration rate in the world. It is understood that the United States, Europe, and China are the most popular purchase destinations for Koreans overseas, and Korean overseas purchases are growing at a rate of over 15%. However, due to the small number of Chinese sellers and products currently entering South Korea, the Korean e-commerce market is still a huge blue ocean market for Chinese sellers.

Affected by the new crown virus, the Korean e-commerce market has risen steadily by category

In the first quarter of 2020, the overall online consumption of the Korean e-commerce market was 979 billion won (approximately 5.78 billion yuan), a decrease of only 2% in the same period, but the sales of food and beverage, household products, and medical personal care products increased by 8%~ 30%.

In addition, during the epidemic, Chinese sellers bucked the trend and sales of household products and personal care products increased by more than 50%, mainly masks and anti-epidemic products. At the same time, consumer electronics and beauty products also maintained steady growth.

What kind of e-commerce platform is Coupang?

Coupang currently has more than 25 million users, with 4 million daily active users and over 15 million monthly active users. The main focus is on the timeliness of delivery and returns. In 2019, Coupang's transaction volume was approximately 7.14 trillion won (approximately 6 billion U.S. dollars), followed by Ebay Korea with approximately 4.23 trillion won (approximately 3.5 billion U.S. dollars).

For six consecutive years, Coupang's retail sales have increased by more than 35 times, the number of customers has increased by 4 times, and the average order value has increased by 6 times.

Coupang's consumer group

Coupang's hot-sale category commission

Korea Promotion Festival

note:

1) Korean traditional festivals are similar to China

2) South Korea has many festivals that are westernized at the same time

3) Specific festivals for different groups

4) November-December annual sales peak season

How does Coupang help Chinese sellers do cross-border business?

1. Traffic: product advertisement

Product advertisements can allow sellers’ products to be displayed to users who search for specific products and potential users with a high probability of purchase to increase sellers’ sales.

In addition, product advertisements can also help sellers to increase product exposure, such as on search results pages, which effectively expose products on high-profile pages.

It should be noted that, regardless of exposure, Coupang product advertisements only charge advertising fees when clicked.

2. Ensure proper delivery and timeliness of logistics

Logistics method: The seller chooses the logistics method by himself;

Logistics timeliness: properly delivered within 7 days. If the time limit is longer, you can indicate it on the listing;

Logistics cost: the seller pays, and the seller can follow up the actual logistics aging and freight setting template in the background.

3. Ensure the safety of the seller's funds

Payment cycle, once a month

At present, it supports the collection of public accounts in the mainland and Hong Kong, Macao and Taiwan regions

The docking with third-party collection agencies is in progress

4. Complete system and data interface

Support API system docking, docking with ERP software providers;

Product upload: API or CSV file upload;

Product description requirements: Korean; product pricing currency: Korean won.

Conditions of entry for Chinese sellers

basic requirements:

1) Companies registered in Mainland China, Hong Kong, Macao and Taiwan;

2) Familiar with the cross-border e-commerce market and have certain experience;

3) There are a certain number of SKUs and products with demand categories.

Entry fee and application method:

1) Only 5-10% commission is charged;

2) Platform registration is completely free, and Chinese sellers invite registration.