Coupang, Korea’s leading e-commerce site, announced on Feb. 2 that it would terminate its social commerce service, which was the company’s initial business model, and commit to its direct purchase and delivery service “Rocket Delivery” and open market.
Coupang said Rocket Delivery service, which delivers products the next day including weekends, price comparison system that shows the best deals, regular shipping service with a 10 percent additional discount, consumer review system that shows even negative ones, Rocket Pay simple payment system are its major success achieved by focusing on the e-commerce sector.
Coupang’s e-commerce business has grown a whopping 2400 percent over the last four years and the number of selling products has increased from 1500 to 30 million. Last year, the total number of goods delivered from the warehouse surpassed 450 million. Coupang had a turnover of 1.13 trillion won (US$987.63 million) in 2015. However, the company posted 526 billion won (US$458.19 million) in net losses, which is 4.4 times higher than that of the previous year. Coupang said it will continue to invest in technologies for better customer experience.
“Coupang has become the fastest growing e-commerce business in South Korea with our customers’ interest in various services, including Rocket Delivery. We will provide innovative services in our overseas direct purchase, travel service and rocket pay service which are popular among our customers,” said Navid Veiseh, Coupang’s senior vice president of global e-commerce