Which Korean e-commerce marketplace is highly loyal to customers?

Posted 2023-05-04 12:05:43

The Korean e-commerce industry confirms it through prepaid charging as a measure of customer loyalty.
Prepaid charging is a payment deposit that consumers can use like cash within a particular platform.
The large balance of prepaid recharge means that many customers want to spend on the platform.
For this reason, the size of the prepaid charge is used as an indicator of customer loyalty of the platform.

Then, which marketplace is the most loyal to Korean customers?

Naver is the leading company. As of the end of March this year, Naver's balance of prepaid recharge was estimated at KRW 100.242 billion. Compared to the same period last year, it increased by 5.7%. Coupang's outstanding prepaid recharge amounted to 97.8373 billion won, up 12.1% from the same period last year. In the first quarter of SSG Dotcom, the balance of prepaid recharge amounted to 43.357 billion won. The balance of prepaid recharge on 11th Street recorded KRW 6,0545 billion. 11th Street also saw its outstanding prepaid recharge increase year-on-year. Lotte On's prepaid recharge balance was KRW 3486 billion. This is similar to the previous period of 3499 billion won. Compared to the same period last year, it decreased by 12.5%. As of the first quarter, G-Market's balance of prepaid recharge was 46.398 billion won, down 0.9% from the previous quarter and 14.6% from the same period last year.

It is noteworthy that Coupang's balance of prepaid recharge is drawing an upward graph, while G-Market continues to decline. Coupang's prepaid charging increased steadily to 87.1 billion won at the end of June last year, except for a decrease of about 200 million won compared to the previous year.

This is deeply related to the increase in the number of active users and paid membership users of Coupang. As of the end of last year, the number of active users who had purchased goods at Coupang at least once was 18.115 million, up 1% from 2021.
Many analysts say that the Lock-in effect is weakening as a factor that is decreasing the balance of G-market prepaid recharge.