Coupang hits user record in August despite membership fee hike

Industry

Coupang hits user record in August despite membership fee hike

Published: 05 Sep. 2024, 14:13 Updated: 05 Sep. 2024, 19:13

KIM JU-YEON
kim.juyeon2@joongang.co.kr

Coupang delivery trucks are parked in a parking lot in Jung District, central Seoul, in August. [NEWS1]

Coupang recorded its highest number of monthly users and estimated sales in August despite raising its membership fees by nearly 60 percent earlier in the month.

While industry insiders say the full consequences of the price hike can only be determined later in the year, the fallout from ailing rival marketplaces TMON and WeMakePrice has increased users for almost every other online retailer, including Coupang.

An estimated 31.83 million users used Coupang’s app in August, the highest number ever since it was launched, according to industry tracker Wiseapp, Retail, Goods on Thursday. The number of users for the month rose 10 percent on year from 28.87 million in August 2023.

Coupang is also predicted to have recorded 4.91 trillion won ($3.67 billion) in sales in August, up 27 percent on year, to reach its highest monthly sales ever.

Coupang started charging its hiked WOW membership fees — from 4,990 won to 7,890 won — for all members from Aug. 7. The e-commerce marketplace had charged 7,890 won for new members from April 13, but kept the old fee for existing users.

The WOW membership encompasses benefits for Coupang’s marketplace and also the retail giant’s streaming platform Coupang Play and food delivery service Coupang Eats.

Chinese e-commerce platform AliExpress recorded 7.2 percent more users in August compared to July at 9.07 million. Gmarket and Auction also saw 3.4 percent and 5.2 percent on-month increases to 5.38 million and 2.69 million users, respectively, during the month.

BY KIM JU-YEON [kim.juyeon2@joongang.co.kr]