Amazon. Nowadays, when you hear this word, most people don’t think of the beautiful rainforest located in South America, but rather the letter 'A' with an orange arrow under it. Amazon stands as the largest ecommerce platform globally, offering customers the convenience of finding almost anything delivered right to their doorstep. However, in South Korea, where technological advancements and impressive delivery services are the norm, Amazon and other global giants like eBay and Alibaba are unfamiliar names. So, how does this technologically savvy country’s approach online shopping?
Top 3 Ecommerce Platforms in South Korea 2023
In 2023, the top three ecommerce platforms in South Korea emerged as Coupang, Naver Shopping, and Gmarket.
Out of 2239 participants, almost 40% used Coupang as their go-to shopping platform with an average purchase frequency of 1.5 per week in 2023. Users' top reasons for defaulting to Coupang for their ecommerce interests were due to Coupang’s speedy delivery, ease of return/exchange, and the cheaper prices compared to other platforms.
While Coupang does have its own membership plans, the second most used platform, Naver Shopping, has many people enjoying the benefits of the different types of memberships. 27% of participants also preferred Naver shopping because of its ease of use both mobile and on the web. This just shows how big Naver is in Korea’s day to day digital usage, beyond being the biggest search engine!
The third most used ecommerce platform, Gmarket, similarly had users enjoying its membership benefits while also mentioning that they use Gmarket because of its variety in events and promotions.
Koreans’ Top 5 Considerations When Shopping Online
You would think that you can just jump into whatever app you use and immediately order what your heart desires. But it’s more complicated than that.
Korean consumers take into account various factors when it comes to ecommerce platforms. Statistical data unveils the top 5 considerations people take into consideration when Koreans are shopping online: price, availability, events, delivery time, and quality.
While there are multiple other considerations such as return policies, customer service, convenience, and more, we have presented the top reasons below. The most noticeable reasons were that people wanted to ensure that they can get the best bang for their buck and availability of what they’re looking for.
Understanding these preferences are crucial for ecommerce retailers and marketers aiming to capture the South Korean market.
Top 5 Categories for Online Shopping in South Korea
Certain product categories dominate the online shopping market in South Korea. Statistical breakdowns highlight the most popular segments to be household goods, food and groceries, fashion, healthcare, and beauty. We were surprised to see that electronic goods consumption from ecommerce platforms was as low as 11th place. Delving into the top 5 categories unveils insights into consumer behavior and market trends.
However, each consumption category ranked differently for each platform. For instance, Coupang had 62% of participants choosing it as their preference for consumer goods, but it was as low as 37% for Naver shopping. Another drastic difference can be seen with 79% of participants buying fashion products from category specific platforms like Musinsa, and 5% choosing Market Kurly (known for its online grocery services).
The numbers presented provide valuable insights into South Korea's ecommerce landscape, showcasing the dominance of local platforms, consumer preferences, and popular product categories. Understanding these trends is essential for both local and global players seeking to thrive in South Korea's dynamic ecommerce market. As the digital retail sector continues to evolve, staying attuned to this kind of information will be key to success in this digital nation.
To get more information about the South Korean market and digital marketing strategies, find us at waterbecorp.com