Widely known as the “Amazon of South Korea,” Coupang has firmly established itself in the lives of many Koreans becoming the biggest online marketplace in the country and its third-largest employer since it was founded in 2010. In this blog, we share why brands looking to expand internationally or tap into the South Korean market should consider selling on Coupang.
The South Korean ecommerce market is estimated to have grown by 22.3% in 2020; and could be worth as much as US$142 billion by 2024, making it an attractive market for international brands. In addition, South Korean online shoppers are extremely well connected; and spend the most online per person of all shoppers in the Asia Pacific region. For this reason, the percentage of retail sales that are online is already at 16%. An investment push by the government is designed to increase this further.
More recently, Coupang had a highly successful IPO in the USA, raising $4.6 billion. Its growth strategy for the next few years includes attracting more customers, increasing customer engagement, and growing its product selection.
The marketplace grew quickly in 2020, with 14.8 million active customers reported in the final quarter of 2020, up from 11.8 million in the same quarter of 2019. Net revenue per customer also increased in this time, up by 59% to $256 for Q4 2020. Much like Amazon, Coupang is focused on offering a broad selection at the lowest prices available in the market.
Coupang has built its own end-to-end infrastructure including logistics and technology, which has allowed it to differentiate its offer and maximize efficiencies. To stay one step ahead of competitors, Coupang has also invested heavily in convenience, particularly around speed of delivery and ease of returns.
While 70% of merchants on the marketplace are small businesses, it is also a channel to market for larger international brands, including LEGO, Gap, and Nature’s Way who have all begun selling on Coupang. Coupang stocks both its own inventory as well as allowing third parties to sell on the platform.
Coupang’s profile has increased significantly outside of South Korea in the last couple of years. In late 2019, it launched a global partner program to help international brands enter South Korea using the platform; this included the opening of international warehouses, such as one in California where US brands can store goods to be sold cross-border.
Pattern runs a market ranking exercise for the brands we partner with, to determine which APAC markets and marketplaces are the best fit for their brand and provide the most opportunity. Factors we consider include product suitability, existing cross-border sales, brand awareness, local competition, and the cost of acquisition marketing to drive sales. This type of analysis can help a brand to determine whether the opportunity to enter South Korea is significant enough to drive the investment for getting set up to sell on Coupang.
If you’re interested in selling on Coupang—or want to discuss how we could help to grow your Asia Pacific online sales—contact us today.
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If you’re in the global ecommerce space, you are most likely aware of Amazon, and probably selling your products on the marketplace. With over $470 billion in sales in 2021 alone, Amazon stands as the third largest company in the world based on revenue. The ecommerce giant is a household name in the U.S. and working hard to grow its market share across five continents worldwide.
Having your products available on Amazon and being competitive there, though, are definitely two different things. If you want to really succeed on Amazon, you’ll need specialized insight into how Amazon works and how to make it work for you. So, for many brands, it’s a great idea to work with an Amazon Search Engine Optimization (SEO) agency.
At Pattern, Amazon SEO optimization service is one of our key competencies. We understand that technology, data-driven insights and expertise are the most important tools brands can leverage to win top listing spots on digital marketplaces. With expert teams and years of experience, we help brands conquer the Profitability Death Spiral as they compete with other products and sellers online. We offer Amazon SEO agency services as a core solution to brands that need more resources to get ahead.
An Amazon SEO agency serves brands by improving their products’ rank and listing performance on Amazon. They make strategic decisions about ad spending and placement that lead to higher traffic, conversions, and revenue for ecommerce brands.
A great Amazon SEO Agency partner will:
Unfortunately, many Amazon SEO agencies profit in unfair ways from your brands’ perceived success based on the ROAS numbers they provide. This is done through including branded search terms in ROAS reports, which naturally skew listing performance.
Let’s say, for instance, your brand is called “Annie’s” and you sell lollipops. Your brand has a very high likelihood of winning the top listing spots on Amazon for lollipop search terms that are paired with “Annie’s,” your brand name. So, SEO agencies will spend your ad money on those terms and report a very high ROAS.
To avoid scenarios like these, it’s best to look for an agency that either calculates their profits on metrics other than your ROAS scores or weighs branded search terms differently in the performance metrics reports. Regardless of your Amazon SEO agency’s cost structure, you should align onbranded search terms before committing to a scope of work.
A great indicator of a high-quality Amazon SEO agency is the level of insight they can provide into your competitors’ listing positioning and how it compares to yours. Data fanaticism is so important at Pattern that we’ve developed proprietary technology to display this exact information with precise detail for every brand we work with. In fact, you can find our free version here to see how you compare to some of your top competitors based on ASIN.
It’s certainly possible to improve your Amazon search performance with blind spending strategies. But a truly great solution will help you to know where your dollars are at their most powerful and competitive.
Amazon’s A10 algorithm prioritizes customer satisfaction—it wants to show consumers the best products that align with their search intent to improve conversions and sales. So, the best way to gain momentum on Amazon is to work on incremental wins.
Improving your performance on more obscure search terms that align with your customers’ search intent is a great way to increase ROAS for the long term. A10 will reward your success with better rankings on higher-volume search terms and the virtuous cycle can help you conquer your most-coveted listing spots. And the best part? This process of gaining momentum, if done right, will naturally decrease your ad spend over time as Amazon recognizes your value and works with you to keep your products at the top of consumers’ search results.
As an Amazon SEO specialist, Pattern knows how to help your brand win better success for long-term profitability on Amazon. With our data-driven tools and brilliant teams of ecommerce experts, we help brands with listing management, content optimization, Amazon ad strategies, and more.
Contact us to learn more about our SEO optimization services.