Service Introduced in Collaboration with CJ Daehan Tongun
1000 Won Cash Compensation for Delivery Delays
Shinsegae Group's e-commerce platforms Gmarket and Auction are partnering with CJ Logistics to launch a new guaranteed arrival next-day delivery service. As the competition for fast delivery intensifies in the e-commerce industry, attention is focused on whether Gmarket, collaborating with CJ Logistics, the number one courier company, can achieve meaningful results.
According to the distribution industry on the 24th, Gmarket and Auction will introduce and pilot a service called 'Star Delivery' starting on the 26th, which guarantees the arrival date of ordered products. Both platforms have previously operated a next-day delivery service called Smile Delivery, but Star Delivery adds an arrival guarantee on top of the next-day delivery service. Like the existing Smile Delivery, combined shipping is supported if multiple items are ordered, allowing them to be packaged and delivered together.
Under the arrival guarantee operation, products delivered via Star Delivery are guaranteed to arrive by the specified date. During the pilot period, on weekdays, orders placed before 8 p.m. are guaranteed to arrive the next day in the form of 'Next-Day Arrival.' If delivery is delayed beyond the guaranteed date, consumers will be compensated 1,000 KRW per delayed shipment based on the tracking number. The compensation is paid as Smile Cash, which can be used like cash on Gmarket and Auction.
Gmarket's Star Delivery follows the comprehensive business partnership announced by Shinsegae and CJ in June. As the two companies decided to collaborate in the logistics sector, CJ Logistics, which was already handling Smile Delivery, will also be fully responsible for Star Delivery. CJ Logistics operates its own next-day delivery service called 'O-NE,' which has been introduced to Gmarket and enhanced with an arrival guarantee service to form Star Delivery. Products delivered via Star Delivery are shipped from Gmarket's logistics center, Dongtan Mega Center.
Gmarket plans to partially introduce Star Delivery as a beta service for pilot operation and gradually expand the range of applicable products and coverage. The Star Delivery beta service applies to about 150,000 products across 14 categories. Major Star Delivery products include ▲daily necessities ▲industrial goods ▲kitchenware ▲beauty products and canned ambient processed foods ▲some digital and home appliances.
Gmarket's launch of the arrival guarantee service through Star Delivery appears to be aimed at strengthening next-day delivery services while providing a service level comparable to competing e-commerce platforms. In fact, among competing e-commerce services, Coupang and Naver Shopping operate arrival guarantee systems. Coupang offers 1,000 KRW in Coupang Cash if items ordered through its own delivery service, Rocket Delivery, are not delivered by the specified date. Naver also compensates with 1,000 KRW worth of Naver Pay points if delivery of arrival-guaranteed products is delayed.
However, the fact that Star Delivery still only supports next-day delivery on weekdays is considered a weakness compared to competing platforms. Coupang Rocket Delivery, which operates its own logistics network, delivers on weekends and holidays and even offers same-day and early morning delivery to its paid Wow members. Naver's arrival guarantee service also provides same-day (limited to orders placed before 11 a.m.) and Sunday delivery, but only in Seoul and the metropolitan area.
On the other hand, Star Delivery offers a service level similar to another competitor, 11st. Like Gmarket, 11st, which does not have its own logistics network, operates a next-day delivery service called 'Shooting Delivery' through Hanjin Express. Shooting Delivery also ships directly purchased products from the 11st logistics center and delivers items ordered by midnight the next day. This order cutoff time is four hours later than Gmarket Star Delivery's 8 p.m. cutoff. However, 11st Shooting Delivery does not provide a separate arrival guarantee service, so no compensation is given if delivery is delayed.
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