Extension of Order Deadline and Expansion of Delivery Areas
[Asia Economy Reporter Jo In-kyung] This summer, as COVID-19 resurged and record-breaking heatwaves continued, the number of consumers using delivery orders instead of shopping in person increased, prompting distribution companies to strengthen their delivery services. They extended order cut-off times and increased delivery frequency, while ensuring that refrigerated and frozen foods do not melt or spoil even when briefly left at customers' doorsteps.
According to the industry on the 24th, SSG.com, operated by E-Mart, recently extended the order cut-off time at the Seongsu PP (Picking & Packing) center from 1 PM to 7 PM. As a result, customers using Seongsu PP center's SSG delivery can receive their products not only during the previous last delivery window of '4 PM to 8 PM' but also during '6 PM to 9 PM' and '9 PM to midnight.'
SSG.com processes up to 140,000 delivery orders daily through three online logistics centers called 'Neo' located in Yongin and Gimpo, and over 110 PP centers nationwide. As order volume surged, the order cut-off rate, which was usually around 85%, recently rose to the mid-90% range. The use of eco-friendly ice packs, which were about 20,000 per day for dawn delivery alone, increased proportionally with the order increase, and the amount of dry ice, which is manufactured and used in-house, also rose by 18% this month compared to the same period last year.
Market Kurly switched the ice packs included with fresh and refrigerated food packaging from the previous 500g size to 1kg starting last month when the heatwave began. The larger purple ice packs melt more slowly, maintaining coldness longer. The number of refrigerants such as dry ice used for frozen food packaging was also increased compared to usual.
Since May, the reusable packaging 'Kurly Purple Box,' which was piloted in some areas, has been provided to all customers in the Seoul metropolitan area since mid-month. The Kurly Purple Box, which can hold about 47 liters, has cooling power that can maintain refrigerated products at about 10°C for approximately 12 hours and frozen products at about -18°C for approximately 11 hours at an ambient temperature of 28°C.
A Market Kurly representative explained, "Between the 12th and 20th of this month, when social distancing measures were strengthened in Seoul and the metropolitan area, new members increased by 43% compared to the previous week (July 3?11), and total order volume also increased by 12%. We use various packaging methods according to the season to maintain perfect freshness until customers open the products delivered to their doorsteps."
Oasis Market expanded its dawn delivery service, which had been operating six days a week from Monday to Saturday, to seven days a week. Already, order volume in the third week of this month (July 15?21) increased by about 10% compared to the first week (July 1?7). As delivery volume increased, dry ice usage rose by about 12%, and ice pack usage increased by about 17%.
An Oasis representative said, "Recently, by expanding the delivery areas to Asan and Cheonan in Chungnam and Cheongju in Chungbuk, and extending the dawn delivery service to seven days a week, consumers can use online ordering services more conveniently. We also plan to unify the order cut-off time, which currently varies by region between 9 PM and 11 PM, to 11 PM by the end of the year."
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