With the rapid increment in the amount of ecommerce customers, the industry of online business has grown explosively over the past few years. Older ecommerce stores have now attained the status of e-commerce giants and the newer ecommerce brands are growing at a pace faster than ever. The current scenario of skyrocketing ecommerce has given birth to renowned platforms such as Amazon. As with the creation of these multibillion online business platforms, new competitors have also emerged in the online market place, such as Coupang. Speculations regarding the future of ecommerce and platform comparisons are the hot topics of discussion now more than ever.
Coupang- a fast growing Korean Startup:
Since its debut in 2010, Coupang has broken some major records in the e-commerce world. According to CNBC, the South Korean start-up has not only turned into the fastest growing online retail platforms but is also becoming a staunch competitor of Amazon in Asia.
Amazon- the endless struggle of staying number 1:
On the other hand, while dominating the e-commerce market for 24 years, Amazon has also spread its wings with a massive number of subsidiaries, electronic e-commerce and cloud computing services now. It has grown into the third-largest information technology corporation by revenue, earning a record 178 billion U.S dollars in just 2017.
Coupang Vs Amazon:
What a great time to be alive! With online retailing at our fingertips and brands thriving each year, let’s see where Coupang stands in its journey to become Amazon.
Coupang 8 Years Ago
Coupang started 8 years back in South Korea with its core objective of online retail through customer satisfaction and preference. The founder and CEO Bom Kim believes in reducing stress of his customers to the level where buying and returning products becomes their easiest possible tasks. Probably, this is the reason why half of the South Korean population (51 million approx.) has downloaded its mobile app.
Coupang is winning the Asian eCommerce:
With little or almost a shaky presence of Amazon in Asia, developed countries like South Korea, Japan and China highly rely on their local e-commerce companies. South Korea, currently standing as the seventh largest global e-commerce market is soon to outdo Japan and U.K within the next five years. Also, with the fourth-largest Asian economies, the country needed a powerful retail business to fulfil its customer needs.
After 8 years of extraordinary hard work, 10,000 employees and 4000 delivery riders, Coupang, also called South Korea’s Amazon becomes the country’s largest online retailer, generating up to $5 billion a year.
Head-to-Head competition with Amazon:
Amazon.com currently retails in 10 countries, and operates in 16 nations in comparison to Coupang, which only delivers across South Korea. Amazon’s major advantage is its fast delivery regardless of the international shipping outside U.S. One of the cons here is the shipping charges and duty tax that may be applied depending on the custom tax in the region. Meanwhile, Coupang aims for a one-day or same day service but at an insanely cheaper rate.
The difference between Amazon and Coupang:
When delivering through Amazon globally, refunding a product may take days. However, in Coupang’s case, just after a few clicks on the app, the product is picked within hours and refunded on either the same day or day after. It does not matter if there is no box, no receipt or even a label. That is how they weigh customer preference. Similarly, for delivery, if you want the deliveryman to come at a specific time, or don’t want him to ring the doorbell, or leave the parcel just outside your house, he will do whatever you prefer.
Coupang continues to grow every minute, with 80% orders everyday via mobile applications. For now, the CEO insists his complete focus in the same region and making the company more and more efficient.
Will Coupang’s instant refunds win over Amazon’s swift deliveries?
To answer this question would be an immature speculation. However, if we look at it from a customer’s point-of-view, Coupang may just beat Amazon because of the impeccable importance it gives to customer satisfaction. For now, let us just witness the biggest revolutions in the eCommerce as they take place in front of our eyes!