Coupang will reduce losses by increasing the subscription fees of Wow members

2022-11-21
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Author:Blue Ocean Yiguan
Source: egainnews

Cross border outbound Coupang will reduce losses by increasing the subscription fees of Wow members

the republic of koreaE-commerce platformCoupangIt seems to have been expanding while bearing losses, but recentlyCoupangStart to increase some service fees (such asWow MemberCosts) as part of a strategic shift.

ICoupangincreaseWow Member Subscription Fee

Blue Ocean Yiguan learned that last Thursday,CoupangtakeWow MemberThe monthly subscription fee increased from 2900 won (US $2.43) to 4990 won. And according to the report of Korea bizwire, Coupang only charges this fee for new users.

This is the first time that Coupang has raised the cost since it first launched its subscription service in 2019.

The online catering platform "Coupang Eats" under Coupang has changed the commission discount plan for restaurant members to a proportional service charge, which actually increases its service commission.

Some analysts believe that Coupang, which has been under pressure for profits since its listing on the New York Stock Market last March, recently began to take measures to improve its profitability.

IIHigher membership fees will improve profitability

It is estimated that there are more than 5 millionWow Member。 Considering that Coupang has more and more loyal users, the company expects that raising the subscription fees of Wow members may solve its profit problem to some extent.

The revenue generated by the increase in subscription fees depends on how many consumers and restaurants protest and cancel their membership. Park Sang joon, an analyst at Kiwoom Securities, said that expanding the sales proportion of value-added services may help improve the company's financial situation, but it is still expected to fall short of profitability.

According to Blue Ocean Yiguan, Coupang is athe republic of koreaIn addition to the first and third party e-commerce stores, Coupang also operates its own warehouse and distribution network.

Because the distribution infrastructure in South Korea is very scarce, Coupang can provide customers with better value positioning through early investment in warehouses and delivery trucks, especially those who have Rocket Wow members (similar toAmazonPrime member).

On Coupang, nearly 100% of orders can be delivered the next day, and most orders can be delivered in the early morning and the same day. It also provides barrier free return service. Users can click a button on the Coupang APP to put their goods outside the door, and then Coupang employees will come to pick up the goods.

This shipping advantage helpsCoupangIt has gained a huge market share in South Korea. In 2017, it was estimated that Coupang's e-commerce market share in South Korea was 7.4%. In 2021, this proportion is estimated to rise to 15.7%.

(Polly ZhangNew media of cross-border e-commerce - Blue Ocean Yiguan website domain news) connects with high-quality resources of cross-border e-commerce.Wal Mart, CoupangWayfair 、Mercado Libre and other platforms settledBrand copywriting planning, network wide promotion, e-commerce training, incubation and other services, please contact us. No unauthorizedRewriting, reprinting, copying, clipping and editingIn whole or in part.

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