As South Korea’s domestic market sees a slowdown, small businesses and mid-sized enterprises are increasingly turning to Coupang as a critical growth partner. By leveraging Coupang’s resources, smaller firms that previously lacked the workforce and budget for marketing, logistics, and customer service are now able to expand their reach and significantly enhance their operations.

Around 250,000 small and mid-sized businesses were selling on Coupang as of December 2024, or a fourfold increase from five years ago, according to retail industry sources on Monday. The total value of products sold by Korean SMEs on the platform also surged from 4 trillion won in 2019 to a projected 14 trillion won ($9.64 billion) in 2024. This growth stems from Coupang’s focus on securing high-quality products while strengthening its competitive edge in fast delivery.

For small businesses, partnering with Coupang provides benefits such as fast delivery, wide customer exposure, and enhanced customer service. Coupang’s direct-purchase model allows SME products to be featured under Rocket Delivery and Rocket Fresh, ensuring orders reach customers within half a day. Additionally, the Rocket Growth program, a fulfillment service where Coupang handles warehousing, packaging, inventory management, shipping, and returns, has been particularly beneficial for small manufacturers lacking logistics infrastructure. Coupang reports that more than 80 percent of sellers who joined Rocket Growth saw their sales double within 90 days.

The impact of Coupang’s support is evident in companies like Korea Hygiene P&E, a manufacturer of organic sanitary pads. The company, based in Eumseong, North Chungcheong Province, saw its highest-ever sales of 3.7 billion won in 2024, more than doubling its revenue after joining Coupang. “For small businesses struggling to secure sales channels, Coupang offers a valuable growth opportunity,” Kim Tae-hyun, a manager at Korea Hygiene P&E, said. With this momentum, the company now plans to expand into Southeast Asia.

Another success story is Saerom Cosmetics, a haircare brand that joined Coupang in early 2024. The company had faced severe challenges after a fire destroyed its 6,600-square-meter factory in 2022, halting production for months. However, after partnering with Coupang, it introduced a beer yeast protein shampoo which quickly became a best-selling Rocket Delivery item, averaging 7,600 units sold per month and generating 2.2 billion won in sales in its first year on the platform.

Recognizing the growing potential of local SMEs, Coupang has also been expanding its beauty product lineup, co-developing private-label (PB) skincare products with small manufacturers. As of 2024, 90 percent of Coupang’s 550 PB product partners were small businesses, further solidifying Coupang’s role as a major driver of SME growth.

Coupang Inc. Chairman Bom Kim reiterated the company’s commitment to supporting small businesses, stating during a conference call last year that Coupang would “increase investment in products and customers” as well as expandimg support for Korean manufacturers and SME partners. As competition from Chinese e-commerce platforms intensifies, Kim emphasized that offering the best product selection, pricing, and service is crucial to retaining customers.

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