How popular is Coupang ? (Scroll to the end of the article, click to read the original text, and directly register for the registration form )

When Chinese cross-border sellers learned that Mabang ERP had a green channel for opening Coupang stores , the number of messages in the background of the "Mabang FM" public account skyrocketed. It took the editor almost two days to reply to all the messages, and also summarized some questions that sellers must ask about Coupang.

This article will comprehensively analyze coupang from the following aspects:

01. What is the current situation of the Korean e-commerce market?

02. Coupang, the most popular e-commerce platform in South Korea

03. What is the most popular category among coupang platform users?

04. How are store opening commissions and category commissions distributed?

05. How to ship goods, collect payments, and connect to the system?

06. What materials do sellers need to prepare for entry?

07. Seller QA

In addition to the green channel for opening stores, sellers can also use the MaBang ERP system to complete a series of operations on the coupang platform, including order processing, product inventory management, procurement supply chain management, logistics channel management, WMS warehousing and shipping, etc.

Okay, let’s analyze how big the business opportunities are in Korea.

01 What is the current situation of the Korean e-commerce market?

In the past, the Korean e-commerce market has always been an unattainable existence for many sellers. This is because the Korean Electrical Appliances and Materials Safety Management Act, which was implemented on January 1, 2009, stipulates that all electronic products that are mandatory products must obtain KC certification before they can be sold in the Korean market. This system has directly led to the fact that in the past decade, the sellers in the Korean e-commerce market have generally been only local sellers.

This situation did not improve until 2018. In 2018, the South Korean government made major revisions to the "Electronic Products and Daily Necessities Management Act", which not only greatly reduced the KC certification burden on foreign small and medium-sized enterprises, but also reduced the "categories that must obtain KC certification". With the introduction of this new regulation, many South Korean e-commerce platforms finally opened their arms to Chinese sellers.

According to data from the Korea National Statistical Office, online shopping sales in South Korea's retail industry exceeded US$140 billion in 2020. From 2018 to 2020, the annual growth rate of online shopping exceeded 16%.

With the popularization of smartphones and the steady development of mobile consumption, coupled with the continuous improvement of logistics infrastructure and the catalysis of the epidemic, online shopping has gradually become the main purchasing channel for Korean consumers. In 2020, mobile transactions accounted for 68% of the total online shopping volume for the whole year, and revenue is expected to show an annual growth rate of 10.3%. By 2024, the market size will reach US$160.707 billion.

As of March 2021, the number of people using shopping apps has exceeded 35 million , and 70% of Internet users in South Korea use apps to purchase goods.

02 Coupang, the most popular e-commerce platform in South Korea

Coupang is a South Korean cross-border e-commerce company founded in 2010 and headquartered in Seoul, South Korea. The founder is Bom Kim. The name "coupang" was inspired by Groupon, which means "interesting" in Korean.

  ▲ Image source: Mabang production Data source: Coupang financial report

As one of the most popular group buying websites in South Korea, coupang has 3.15 million monthly UVs and more than 20 million users. On average, each user spends more than $100 on coupang every week. In addition, coupang often invites popular Korean stars to endorse its products, which has brought a very good fan effect.

Coupang is an e-commerce company that attaches great importance to UX experience, focusing on delivery and return timeliness. It has transitioned from group buying to comprehensive e-commerce services, focusing on customer shopping experience. For example, Korean consumers like to call for consultation before online shopping, and Coupang has equipped high-quality customer service staff for this purpose.

  ▲ The picture comes from coupang official website

In addition, Coupang often gathers various experience personnel to personally experience a certain product, and then write down their own experiences, so as to better analyze from the customer's perspective and enhance customers' trust in the website and products.

03 What is the most popular category among coupang platform users?

From the consumer side, the way Korean netizens use the Internet has changed dramatically since the outbreak, with the online shopping rate of middle-aged and elderly people increasing significantly; online shopping is the preferred channel for consumers to buy non-branded goods. It is worth noting that under the influence of the epidemic, "stay-at-home challenge", "safety challenge", "outdoor oasis", "mental management" and "new working environment" have also become keywords for Korean consumer trends in 2021.

  ▲ The picture comes from Mabang Production

couapng is a comprehensive platform. In terms of categories, by taking stock of the proportion of each category of online shopping in South Korea in 2020, it is not difficult to find that the top four best-selling categories in the Korean e-commerce market are food and beverages, household appliances, electronic communications equipment, catering services, and cosmetics.

▲ Image from iResearch

Among them, the growth of the five major categories of footwear and accessories, home appliances and electronic communication equipment, pet supplies, furniture, and indoor sports is particularly obvious.

04How are the platform store opening fees and category commissions distributed?

Now comes the highlight! How much does it cost to open a store?

  ▲ The picture comes from Mabang Production

There are different commissions for different categories.

  ▲ The picture comes from coupang

l The market for Bluetooth headsets, smart wearables, mobile phone accessories, etc. is large, and they value product quality and reviews.

l The market for mobile phones, computers and other complete devices has little room for Chinese sellers

l South Korea has developed electronic products, but there are also shortcomings, such as generally high prices

l The market for small household appliances, smart home, oral products, small beauty equipment, etc. is huge

l Due to environmental reasons, there is a great demand for products such as air purifiers

l Clothing is the most searched category in Korea (women’s clothing)

l Sales of kitchen and bathroom products and four-piece bedding sets increased

TIPS: The operating logic of coupang is very similar to that of Amazon, focusing on listings rather than stores. Coupang also focuses on listings.

05How to ship, collect payment, and connect to the system on coupang?

Sellers can choose the logistics method: self-delivery or using Coupang Shenzhen warehouse

- Self-delivery

Self-delivery logistics time: (self-set) + 6 days, preferably within 3-7 days;

If the validity period is longer, you can indicate it on the listing;

Logistics costs: paid by the seller, who can follow up on the actual logistics time and freight setting template in the background.

(MaBang ERP is deeply connected with more than 1,000 logistics channels at home and abroad, and sellers can choose the most suitable logistics company by themselves)

-coupang Shenzhen warehouse

The benefits of warehousing ( you can use the coupang rocket delivery logo! Increase conversion rate )

What is coupang Global Logistics Service (CGF/CGF LITE)

l CGF: It is equivalent to Amazon FBA warehousing and distribution service. The goods are sent to the Shenzhen warehouse and delivered by Coupang. You don’t have to worry about the logistics assessment and timeliness of delivery .

l CGF LITE: Like many cross-border platforms, it is equivalent to a domestic transit warehouse . After the order is placed, the goods are sent to the Shenzhen transit warehouse, and then directly to the Korean customers.

The difference between coupang global logistics service CGF/CGF LITE

  ▲ The picture comes from Mabang Production

Logistics service fee:

Operation fee-RMB 4 per order

Local delivery fee - RMB 17 per order (including customs clearance)

Cross-border air freight-please refer to the following charging standards

  ▲ The picture comes from Mabang Production

Cross-border air freight rate calculation

Compare the volumetric weight with the actual weight of the product and choose the larger of the two.

For example: The net weight of a product is 0.2 kg and the packaging dimensions are: 10 cm long, 10 cm wide, and 10 cm high.

The formula for calculating "volume weight" = length * width * height / 6000 = 10 * 10 * 10 / 6000 = 0.16 (kg). It is less than the net weight of the product 0.2 kg, so the billing standard is 0.2.

l According to the billing standard value, find the corresponding level in the freight charging standard.

l Find the corresponding fee standard according to the level - the fee may be adjusted according to the exchange rate - the fee of each project may be adjusted in the future

Warehouse storage fee

  ▲ The picture comes from Mabang Production

Other service fees

▲ The picture comes from Mabang Production

-Payment Collection-

· The payment collection period is once a month, calculated based on the time of successful delivery.

Currently supports public accounts or third-party financial institutions PingPong in mainland China, Hong Kong, Macau and Taiwan

-System Docking-

The platform supports API system docking

Product upload can be done through API or CSV file upload. Mabang already supports Coupang one-click publishing. If you have any needs, click the original link to contact Mabang customer service

Product description requirements: Korean

Product pricing currency: Korean Won

06 What materials do sellers need to prepare for entry?

· The original and English translation of the business license of a company registered in mainland China, Hong Kong, Macau, or Taiwan (apply for a business license that is more than 2 to 3 months old, otherwise it will be rejected directly)

· Original ID card or passport of the legal person and English translation

· Photo of the legal person holding his/her original ID card or passport

· Original and English translation of the contact person's validity certificate (provide a telephone bill or phone recharge invoice, and it is best to fill in the legal person's contact person)

· Have experience in cross-border e-commerce sales and have a certain number of SKUs (the key is to have SKUs)

A bank account or PingPong Enterprise account that can receive USD

· There are already store links on other cross-border platforms

· Sellers’ access considerations

· No support for self-employed individuals

One business license can only open one store, and it does not support opening multiple stores with one business license

07 Questions

Q: Where is the coupang Shenzhen warehouse?

A: Shenzhen Longhua

Q: Are there any requirements for the order delivery method?

A: Based on the listing, Shenzhen warehouse cgf, cgf life, and self-delivery are all acceptable.

Q: How long is the platform review cycle?

A: Coupang is very popular, please be patient.

Q: What categories does KC have?

A: Liquid, powder, maternal and infant products, children's products, home appliances, toys, skin care products

Q: Is it better to ship by yourself or to ship from Shenzhen warehouse?

A: Shenzhen warehouse, because there is a Rocket Warehouse logo on the packages from Shenzhen warehouse.

Q: If I fail to register with the same business license, can I register again in the future?

A: No.

Q: Is listing as fast as on Amazon?

A: Faster than Amazon.

Q: Do you need brand information?

A: If you have, it is recommended to submit, but you must submit the Korean trademark. Q: I registered a company, why do you say I have false materials? What is the basis for your judgment of false materials? I have real materials

A: There may be something wrong with the translation.

Q: How long does it take to ship the goods to the Shenzhen warehouse?

A: Within 2 days after placing the order.

Q: Is there a rocket when the order is placed and the goods are shipped to your Shenzhen warehouse?

A: Shenzhen warehouses include two types: the first is that we deliver the goods after the order is placed; the second is that we stock up the goods in our Shenzhen warehouse and we ship directly from the stock after the order is placed. Both have rockets.

Scan the QR code to enter the Mabang ERP @coupang store opening green channel