[why&next] Naver Breaks 'Logistics=Cost' Formula with Alibaba-Style Model

E-commerce Leadership Shifts from Distributors to Sellers... Aiming to Be a 'Game Changer' with Partnership Model

Lee Yoon-sook, CEO of Naver Forest CIC, is presenting the direction of the commerce business at the Naver Brand Partners Day held on the 3rd in Gangnam-gu, Seoul.
[Photo by Naver]

[Asia Economy Reporter Yuri Choi] Naver has made a bold move in the e-commerce market with an Alibaba-style logistics model based on business partnerships and technology. The starting point is the Arrival Guarantee solution. Unlike Amazon, it allows sellers to choose various logistics methods such as arrival guarantees without large-scale investments or owning infrastructure. The idea is to break the formula of 'logistics = cost' and return control to the sellers.

Guaranteed Product Arrival Date... Also Applied to Global Commerce

On the 3rd, Naver held a Brand Partners Day at the Intercontinental Seoul COEX and introduced the 'Naver Arrival Guarantee' solution. The arrival guarantee service analyzes various data such as order data, logistics company inventory, and courier delivery to guarantee the product arrival date. Consumers can know the delivery schedule in advance based on the date, and if the product does not arrive on the promised date, they receive compensation such as Naver Pay points.

Naver will start selling products with the arrival guarantee tag from December. The solution will first be applied to fast-moving consumer goods (FMCG) such as food, beverages, and daily necessities, aiming to cover half of the FMCG category by 2025. In the mid to long term, Naver plans to expand the range of arrival guarantee products and apply the solution to the global commerce market as well.

Yoon Yoon-sook, CEO of Naver Forest's Corporate Independent Company (CIC), explained, "We will expand the arrival guarantee according to categories where consumers want fast delivery. Based on domestic experience, Naver's model is to export a platform that connects cross-border fulfillment systems (handling everything from storage to delivery) overseas."

Increased Seller Control in E-commerce... Differentiation from Amazon and Coupang through Partnership Model

Naver plans to introduce various logistics solutions starting with the arrival guarantee. The goal is to bring e-commerce leadership to sellers with a logistics model different from retail giants like Amazon and Coupang.

With the arrival guarantee, sellers can freely choose the delivery type for each product. Additionally, sales and logistics data accumulated through the arrival guarantee will be provided to sellers for use in market analysis and product planning. The key feature is giving logistics control to sellers rather than retailers.

Through this, Naver aims to create a new logistics model in the domestic e-commerce market. By partnering with businesses in various fields such as logistics and delivery, Naver will provide diverse logistics services to sellers and focus on offering solutions that connect each area. For example, Naver’s AI service Clova will provide demand forecasting-based inventory management solutions to logistics companies and sales forecasting models to sellers.

Alibaba and Shopify are representative examples of such partnership model businesses. Alibaba has formed a nationwide network with various partners including warehouses, transportation, and couriers, connected through its data platform 'Cainiao.' When a product is ordered on Alibaba Group’s commerce platform, suitable logistics companies among various partners handle the delivery. This differs from Amazon and Coupang’s model, which build their own warehouses and systems. Amazon’s model requires large-scale investment to operate the entire process from delivery to distribution and focuses on mass-produced goods suitable for economies of scale.

CEO Yoon emphasized, "For a 'better Naver Shopping than today,' we considered a model that fits us rather than competitors’ models," adding, "We will bring changes to the e-commerce market by leveraging Naver’s strength in product diversity and cooperating with partners."

This content was produced with the assistance of AI translation services.