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Coupang: Fulfillment Service Helps Merchants Double Sales in 90 Days

South Korean eCommerce giant Coupang is seeing growing adoption of its latest products and services.

Its fulfillment and logistics, grocery delivery and meal delivery offerings made gains during the first quarter, Bom Kim, founder and CEO of Coupang, said Tuesday (May 7) during the company’s quarterly earnings call.

The company’s Fulfillment and Logistics by Coupang (FLC), which gives suppliers access to Coupang’s delivery infrastructure and network, saw a 130% year-over-year increase in units sold, Kim said.

For consumers, FLC provides a growing assortment of goods that can be delivered overnight, same-day or next-day, Kim added.

“FLC is providing critical support to thousands of merchants who are able to grow faster by selling their products with Rocket service levels without investing in prohibitively expensive infrastructure and technology,” Kim said. “FLC sellers, over 80% of whom are SMBs [small and medium-sized businesses], have seen their sales on average more than double within 90 days of converting to FLC.”

Coupang’s online grocery delivery offering, Rocket Fresh, grew 70% year over year in terms of units sold, Kim said during the call. Kim attributed the gain to customers responding to the service’s wide assortment of fresh goods, low prices, high quality and free shipping threshold of $11.

“We’re also proud that Fresh provided critical support to farmers and fishers by increasing the inventory we purchase directly from them, while also delivering significant savings in both time and money to customers,” Kim said.

Coupang’s online meal delivery service, Coupang Eats, is seeing an acceleration in customer adoption driven by its new free delivery option, Kim said during the call.

“In the month of March, when Eats launched its free delivery program, Eats recorded the largest year-over-year increase in customers and orders in its history,” Kim said.

Of Farfetch, the luxury retailer Coupang acquired in December 2023, Kim said, “Our journey at Farfetch is just beginning.”

Looking ahead, Kim said Coupang will continue to invest billions of dollars in capital expenditures over the next several years to strengthen its fulfillment and logistics infrastructure, increase the speed of delivery, and expand free delivery to even the most remote corners of Korea.

“Customers cast a new vote with every purchase they make and will not hesitate to spend their money at another venue they deem to be better,” Kim said. “We will have to win their vote each and every time by offering them the best selection, price and service.”