Shinsegae, which has recently been expanding its early morning delivery service areas, announced a significant increase in sales. (Image courtesy of SSG.com)
SEOUL, Jan. 27 (Korea Bizwire) — South Korea’s e-commerce sector saw a challenging 2024, with economic pressures leading to reduced consumer spending across platforms.
Despite these headwinds and competition from Chinese e-commerce players like AliExpress and Temu, Coupang and SSG.com maintained strong customer loyalty, according to data released on January 26 by analytics firm IGAWorks.
SSG.com recorded the highest estimated average spending per user at ₩131,772, followed by Coupang at ₩95,166 and Gmarket at ₩85,200.
Auction and 11Street trailed at ₩56,454 and ₩43,849, respectively, while AliExpress and Temu ranked lowest, with users spending an average of ₩16,849 and ₩7,053.
Average spending per user is widely regarded as a key indicator of customer loyalty, with higher figures reflecting frequent purchases by dedicated shoppers.
SSG.com’s strong performance is attributed to its integration with offline affiliates like E-Mart and Shinsegae Department Store, offering seamless cross-category shopping across groceries, luxury goods, and cosmetics.
A Coupang logistics center in Seoul (Image courtesy of Yonhap)
Coupang also stood out, reporting an 11% year-over-year increase in spending per user, making it the only major platform to grow this metric. This resilience came despite raising its WOW membership fee from ₩4,990 to ₩7,890 per month, with minimal membership cancellations.
However, most other platforms saw declines in average spending. 11Street experienced the steepest drop at 20%, followed by SSG.com (17%), Auction (7%), and Gmarket (4%).
Analysts attribute the decline to a combination of high inflation, rising interest rates, and reduced consumer confidence, compounded by payment settlement delays at smaller platforms like TMON and WeMakePrice.
Coupang solidified its dominance in the market, leading in total estimated annual sales at ₩35.37 trillion, more than double the combined sales of Gmarket (₩4.96 trillion), 11Street (₩4.13 trillion), SSG.com (₩3.26 trillion), Auction (₩1.39 trillion), and AliExpress (₩1.35 trillion).
Coupang also recorded the highest monthly active users, averaging 30.96 million, far surpassing 11Street (7.84 million) and Gmarket (4.83 million).
As South Korea’s e-commerce sector faces a tough 2025, platforms like Coupang and SSG.com showcase the importance of customer loyalty and diversified offerings in navigating economic uncertainty.
Ashley Song (ashley@koreabizwire.com)
