CJ Logistics is South Korea’s largest logistics company
Gmarket Inc., an e-commerce arm of South Korea’s Shinsegae Group, said on Monday it will roll out a service this week to deliver products by the date of customer request in collaboration with CJ Logistics Corp. to catch up with its bigger rival Coupang Inc.
The new delivery service, dubbed Star Delivery, will guarantee the delivery of products by the date of request, or the next day of the order placed by 8 pm, starting on Sept. 26.
If the delivery is delayed, Gmarket will compensate its customers with a reward point worth 1,000 won (750 cents) per order.
Their partnership is based on the memorandum of understanding the two companies’ parent groups signed in June this year.
They will offer the guaranteed delivery date service for some 150,000 types of products in 14 categories, including daily necessities, kitchenware and home appliances. The service will expand into a broader range of products and categories later on.
GMarket expects that the fast delivery service will increase customer satisfaction with delivery, while reducing the payment settlement period and boost sales for sellers on its platform.
With the Star Delivery, Gmarket will become the second South Korean online marketplace that connects sellers and buyers that guarantees the next-day delivery after Naver Corp., the country’s largest online portal.
The Star Delivery will also cover bundled products, giving Gmarket a competitive edge over Naver.
Coupang’s Rocket Delivery guarantees the same or next-day delivery
Industry observers said it is meaningful that the guaranteed delivery date service is offered by open online marketplaces that connect buyers and sellers.
Previously, such delivery services are available mostly on direct purchase platforms such as Coupang that secure products and store them in their warehouses before their orders are placed.
The partnership between Gmarket and CJ Logistics came as the latter is slated to roll out seven-days-a-week delivery service next year. The move is aimed at fending off competition from Coupang that has been bolstering its own logistics network.
“On top of Gmarket’s price competitiveness and product diversity, it will further improve shopping convenience by providing a predictable delivery service,” said a Gmarket official, referring to the Star Delivery.
By Hyun-Jin Ra
raraland@hankyung.com
Yeonhee Kim edited this article
