How to Start Selling on Coupang Marketplace
Korea's influence transcends its iconic K-pop scene, standing as the fourth-largest economy in Asia and the twelfth-largest globally by 2019. With e-commerce expenditures surging to $128 billion in 2019 and projected to reach $206 billion by 2024, boasting a Compound Annual Growth Rate (CAGR) of approximately 10%, Korea solidifies its position as a thriving global e-commerce hub. Amidst this landscape, Coupang emerges as a frontrunner, dominating the Asian e-commerce realm and reigning as Korea's premier online retailer, offering lucrative opportunities for international merchants venturing into the flourishing Coupang Marketplace.
The Drive to Sell on Coupang
Since its establishment in 2010, Coupang has been at the forefront of revolutionizing the e-commerce landscape. In the first quarter of 2021 alone, Coupang experienced an astounding 74% year-over-year surge in net revenues, amounting to a staggering $4.2 billion. With quarterly active customers skyrocketing by 21% year over year, totaling 16 million, and the total net revenue per active customer soaring by 44% to $262 within the same period, Coupang's unwavering customer engagement and loyalty are palpable. This is further evidenced by the consistently high spending driven by repeat purchases, with spending from existing customers steadily increasing from approximately 87% in 2016 to around 90% in 2020.
Getting Started on Coupang Marketplace
Embarking on your journey as a seller on Coupang is a straightforward process. Begin by visiting the Coupang Marketplace website and clicking on the "Sign Up" button. Here's a rundown of the required documentation for global seller registration:
- Valid Business License: For US-based sellers, submission of an EIN Confirmation Letter and Tax Form is mandatory.
- Proof of Identification: Provide a valid passport or government-issued ID of the business owner.
- Bank Documentation: Submit a bank letter or statement displaying crucial details such as the bank name, address, account holder, account number, and SWIFT code. It's crucial that the bank account holder's information aligns with that of the business entity.
- Evidence of Business Ownership: Present documentation demonstrating the relationship between the business owner and the business entity.
- Verification of Contact Information: Provide a phone bill indicating either the company name or an individual's name associated with the company.
Benefits for International Sellers on Coupang Marketplace
Coupang Marketplace extends a plethora of benefits to brands and sellers aiming to showcase their products on the platform as third-party marketplace vendors. Sellers have the liberty to ship directly from their home country to customers, tapping into the Korean market with their existing operational infrastructure sans the need for a Korean domestic business license or local bank account. Additionally, Coupang facilitates settlements for sellers in various currencies, including USD. Leveraging Coupang's expansive customer base and user-friendly interface, businesses can effortlessly expand their global reach and introduce their products to Korean consumers. Furthermore, international sellers can avail themselves of additional advantages on Coupang Marketplace:
- Flexible Solutions for Sellers of All Sizes: Utilize Coupang's Open API platform for seamless integration to list products and manage orders within existing systems. Alternatively, leverage WING, Coupang's seller management portal, for streamlined operations and efficient business growth.
- Support from Marketplace Aggregators: Various marketplace aggregators facilitate listing products on Coupang through their platforms, enabling sellers to import listings effortlessly and expedite the selling process.
- Assistance from Service Providers: Coupang Service Provider Network (SPN) offers support to sellers new to the Korean market or lacking proficiency in the language, providing assistance with delivery logistics, translation services, and crafting impactful Korean content to enhance sales.
Conclusion
Venturing into the Coupang Marketplace presents a lucrative opportunity for international sellers to thrive in Korea's dynamic e-commerce landscape. With its remarkable growth trajectory, unwavering customer engagement, and user-friendly platform, Coupang offers an ideal environment for businesses of all sizes to prosper. From flexible integration options to support from marketplace aggregators and service providers, Coupang ensures a seamless and efficient selling experience. To explore the immense potential of the Korean market and kick-start your journey on Coupang Marketplace, reach out to us today for expert guidance and assistance.
