75% of Sellers on the Platform Are Small Business Owners and SMEs
The fallout from the recent personal information leak at Coupang is showing signs of spreading to small business owners and SMEs operating on the platform. As concerns mount that a full-scale customer exodus could directly impact the sales of smaller sellers, related organizations are closely monitoring the situation and preparing countermeasures.
According to industry sources on December 4, the recent wave of Coupang customer withdrawals has raised concerns that the impact could extend to small business owners and SMEs, resulting in declining sales and other damages. Posts such as "Coupang account deletion proof" and "How to leave Coupang" are being rapidly shared on social media and online communities. In some circles, a boycott movement urging people not to purchase from Coupang is also gaining traction. The rapid spread of the "Coupang accountability" narrative stems from reports that the incident was caused by internal control loopholes and inadequate server security.
According to Korea Credit Data, 75% of Coupang's sellers are small business owners and SMEs, making the platform a crucial online sales channel for these smaller enterprises. If the repercussions of this incident reach small business owners and SMEs, it could lead to more than just a personal information leak-it could also weaken their competitiveness and sales channels.
Mr. Lee, who sells electronic accessories in Gangseo-gu, Seoul, said, "About 80% of my online sales were from Coupang through direct seller delivery. On weekends, I usually get at least 120 orders a day, but after the news of the data leak broke last Sunday, my orders dropped to 54 that day and have averaged only about 40 per day this week." Ms. Han, who sells kitchenware in Hwaseong, Gyeonggi Province, commented, "Not only has the number of orders decreased, but I am also getting many inquiries about canceling already placed orders. Although I also sell through my own website and other online stores, this incident has made me realize the need to diversify my online sales channels even further."
As the exodus of Coupang's paid 'Wow Membership' users intensifies, it is expected that restaurant owners on the Coupang Eats delivery platform will inevitably be affected as well. While Coupang has officially stated that this incident is unrelated to Coupang Eats and Coupang Play, the Wow Membership offers benefits across Coupang, Coupang Eats, and Coupang Play, so cancellations are likely to have an impact on these interconnected services.
A representative from the National Franchisee Association said, "It may still be too early to observe a clear drop in sales due to this incident, but there are voices reporting a decrease in order calls and concerns about future losses. Many are lamenting that this crisis has hit at a time when business is already tough due to the economic downturn."
Related organizations are closely monitoring the situation and seeking ways to respond. A representative from the Korea Federation of Micro Enterprises stated, "Since Coupang accounts for an overwhelming share of small business sales, if losses become a reality, small business owners will be hit hard. We are currently listening to reports of damages from small business owners and discussing countermeasures."
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