Automated Logistics
According to its first-quarter earnings report filed with the U.S. Securities and Exchange Commission (SEC) on May 10, Coupang reported sales revenue of US$5.53 billion in the first quarter of 2023. The figure represented an increase of 13 percent from the same period of 2022.
“The reason why Coupang continues to grow despite an overall downturn in the retail market is that Coupang offers experiences very different from those that customers can have about limited selections and high prices at brick-and-mortar retailers,” said Kim Beom-seok, CEO of Coupang.
Kim said that Coupang has been successful in its efforts to boost profitability without sacrificing customer experiences. In fact, Coupang reported an adjusted EBITDA of US$249.1 million for the quarter, with a margin of 4.2 percent. This means that the Korean e-commerce giant made an improvement in profitability compared to the previous year’s -1.8 percent.
In particular, Kim called the current Rocket Fresh Service “the best online grocery free shipping program now available.” He also said, “While some online grocery services (Amazon) have withdrawn their free shipping programs and raised the free shipping bar to US$150 to reduce losses, Coupang has realized profitability by offering free shipping on orders over US$11.”
“We have steadily lowered consumer prices for years while expanding business margins so we will be able to invest in additional profitable businesses and automated logistics technology,” Kim said with reference to future plans.