Imitating Amazon FBA? South Korean e-commerce giant Coupang accelerates the development of "jet transport" service

According to Korean media reports, Coupang, which uses fast delivery as its weapon, is accelerating the development of " jet transportation " .

Coupang renamed the Rocket League project launched in July last year as " Jet Shipping . " When shopping on Coupang, ordinary users can see that certain products have a badge called " Jet Shipping . "

From a consumer user 's perspective, this may be similar, as the purchased items can be received quickly where they are wanted. However, from a seller's perspective, in addition to the existing rocket shipping , an option called " Jet Shipping (Rocket League ) " has emerged .  

Previously, Coupang first launched the plan under the name of "Rocket League " in mid-last year , and emphasized that sellers in the Coupang market can not only determine the price of goods, but also directly determine the discount rate and whether the promotion will be carried out.

As we all know, in the past, Jet Shipping required sellers to negotiate with Coupang on the price of goods . In other words, Jet Shipping enables sellers to use the fast delivery (logistics) system built by Coupang while strengthening the sellers ' discretion in terms of price and inventory management .

Jet Transport predicts inventory demand through Coupang's algorithm and provides data to sellers , who then place the goods in Coupang's rocket distribution center. In addition , Coupang is also responsible for customer service (CS) such as delivery or return , so sellers can fully focus on formulating product strategies.

Jet transport (Photo credit : Cou pang)

Previously, many people observed that when Coupang was listed on the New York Stock Exchange earlier this month, Coupang's corporate value and growth potential were highly praised, and Jet Transport made a great contribution.

SK Securities Research Institute's Liu Chengyu analyzed in a March report that the specific implementation of Coupang's jet transportation is similar to Amazon's FBA, which may make up for the increased fixed costs due to over-investment in logistics.  

It is estimated that the entry fee of Jet Transport may exceed 30% including the additional tax . However, if the additional jobs and costs of express delivery and return business through ordinary sales are taken into account, this structure will be more advantageous. In addition, since Jet Transport sellers will add badges and increase the frequency of exposure, it is expected to be more beneficial to the sellers' sales.

From Coupang's perspective, rocket shipping is a structure that purchases goods directly from sellers, while jet delivery is a method of storing goods and delivering them immediately, therefore, improving inventory turnover and efficiency.

It is reported that Jet Transport adopts the method of returning goods to sellers if they are not sold within 3 months after entering the warehouse , and the handling fee applies to different goods.

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