South Korea's e-commerce scene is positioned as one of the largest on a global scale, with notable forecasts for growth. Coupang stands out as the dominant force in the country's e-commerce market, commanding the highest share. Its revenue in 2023 amounted to $21,116.9 million, reaffirming its status as the foremost player in the sector.
In 2023, South Korea has emerged as the fourth-largest market for both B2B and B2C e-commerce sales, with projections indicating a move to the third position by the end of the decade. Notably, South Korea's e-commerce sales as a percentage of GDP are unmatched, reaching an impressive 79%, far exceeding the norm observed in other countries, which typically falls below 50%, except for Japan, where it stands at around 67%. Furthermore, South Korea's retail e-commerce market holds the fifth position globally and ranks third in the Asian-Pacific region in 2023, surpassing Germany's market size in 2020. Consequently, the share of retail e-commerce sales in South Korea continues to experience a steady upward trajectory each year.
Since its establishment in 2010, Coupang has been revolutionizing the e-commerce landscape with its innovative strategies. In the first quarter of 2021 alone, Coupang witnessed a remarkable 74% year-over-year increase in net revenues, amounting to $4.2 billion. Additionally, quarterly active customers surged by 21% compared to the previous year, reaching an impressive 16 million. Concurrently, the average net revenue per active customer saw a significant rise of 44% to $262 during the same period.
This strong and growing customer engagement and loyalty are evident in the consistently high spending driven by repeat purchases. The share of spending from returning customers, who made their first purchase in a previous year, has steadily increased from approximately 87% in 2016 to around 90% in 2020.
Coupang Marketplace presents a platform for brands and sellers to showcase their products as third-party marketplace vendors. Sellers ship directly from their respective countries to customers upon receiving orders through Coupang. Utilizing Coupang eliminates the necessity for a local business license or bank account, as settlements can be processed in various currencies, including USD. With Coupang's substantial customer base and user-friendly app, businesses can seamlessly expand their global presence and cater to Korean consumers. Moreover, international sellers on Coupang Marketplace enjoy additional benefits:
1. Versatile Solution for Sellers of Any Scale: Coupang offers an Open API platform for smooth integration, allowing sellers to manage product listings and orders within their own systems or through WING, Coupang's seller management portal, facilitating efficient business growth on the platform.
2. Marketplace Aggregator Support: Numerous marketplace aggregators support listing on Coupang via their platforms. Sellers leveraging these providers for managing multiple marketplaces can swiftly import their listings to their Coupang store, streamlining the selling process.
3. Support from Service Providers: For sellers unfamiliar with the Korean market or lacking proficiency in the language, Coupang's Service Provider Network (SPN) provides a range of partners adept at delivery in Korea, content translation, and creating impactful Korean marketing materials to enhance sales.
Coupang serves as an entryway for global brands aiming to penetrate the South Korean e-commerce market. In addition to aiding local SMEs, Coupang has emerged as an appealing platform for established international brands like Loop, GNC, and LEGO, who have already seen considerable success in South Korea through Coupang. Utilizing its global partner program and strategic focus on international markets, Coupang offers a streamlined path for global brands seeking to capitalize on the abundant opportunities within South Korea's e-commerce landscape.
Embark on your journey with Coupang alongside Pearson & Partners. Considering entering the realm of Coupang? Registering on Coupang entails navigating various steps in South Korea, such as establishing a corporation, business registration, and opening a bank account. Allow Pearson & Partners to guide you through this process. Specializing in facilitating market expansions, we provide comprehensive assistance with visa and tax matters, ensuring compliance and prosperity amidst the dynamic Korean regulatory environment. Our commitment is to deliver personalized support tailored to your specific business needs.
Contact us for a partnership that transcends traditional services, aligning seamlessly with your business objectives.