Coupang and WeMakePrice, the two frontrunners that started as social commerce companies are having intensifying competition.
WeMakePrice reportedly recorded W370 billion won (US$333 million) in transaction volume in June. In the same period, Coupang's transaction volume was estimated at 400 billion won (US$360 million).
Coupang pursued by WeMakePrice, has been also showing a tremendous momentum with the first weekly trading volume of July hitting a record high.
In particular, Coupang has been energized by a recent court ruling that “its rocket-like speedy delivery of goods was not illegal. In addition, by the launch of its PB product business among others, the e-commerce company is taking a momentum to overcome a slump stemming from bad news in the first half of the year due to issues over the treatment of Coupang delivery workers.
WeMakePrice said its March transaction volume exceeded 300 billion won (US$270 million). As a result, the volume grew more than 20% in three months. The e-commerce industry often uses transaction volumes as an indicator. In the case of sales disclosed in financial statements, it is recorded that direct purchases dwarf sales on commission.
For example, if the price of a product sold via the direct purchase method is 10,000 won (US$9), 10,000 won will be recorded as a sales figure. However, in the case of the company that obtains commissions from sale on commission, only the amount of the commission is inputted as a sales amount.