Naver "Guarantees Smart Store Product Arrival Date Starting Today"

Expecting Increased Shopping Transaction Volume by Enhancing Delivery Competitiveness
Considering Introducing Logistics Solution Fees for Sellers

Jang Jin-yong, Naver's Lead Manager, is presenting the 'Naver Arrival Guarantee' solution at the Naver Brand Partners Day held on the 3rd of last month in Gangnam-gu, Seoul.
[Photo by Naver]

[Asia Economy Reporter Yuri Choi] "Don't wait any longer for Naver Store products."

Naver is launching a ‘Delivery Guarantee’ service that guarantees the exact arrival date of products. This enhances its delivery competitiveness, which was considered a weakness compared to e-commerce competitor Coupang. By providing direct logistics services and selling marketing solutions together, it is accelerating the improvement of profitability in the commerce sector.

On the 20th, Naver introduced the Delivery Guarantee service focusing on daily necessities in Smart Store. When purchasing products tagged with Delivery Guarantee, customers are informed exactly when they will receive them. Next week, a Delivery Guarantee section gathering these products will be opened.

Naver guarantees product arrival dates by analyzing various data such as order data, logistics company inventory, and courier delivery. If the item does not arrive on the promised date, customers receive compensation in the form of Naver Pay points worth 1,000 KRW. Although Naver provides direct logistics services, it has not built its own logistics centers like Coupang. Instead, it formed alliances with CJ Logistics, the number one logistics company, as well as logistics startups Pumgo and Fasto. By linking data between sellers and logistics companies, it monitors logistics flow and enhances fast delivery.

Instead of infrastructure requiring large-scale investment, Naver is pursuing fast delivery by creating delivery solutions, which is also expected to improve profitability in the commerce sector. Naver’s cumulative commerce revenue for the third quarter was 1.3143 trillion KRW, a 22% increase compared to the previous year. However, compared to last year’s annual revenue growth rate of 36%, the growth slowdown is evident. Jaemin Ahn, a researcher at NH Investment & Securities, predicted, "It will be possible to increase transaction volume while narrowing the service gap with competitors," adding, "Cost burden will not increase significantly, leading to profit growth."

Naver plans to convert the accumulated sales and logistics data from Delivery Guarantee into marketing solutions and provide them to sellers for a fee, enabling market analysis and product planning. A Naver official said, "If sellers utilize purchase and delivery data, it can help in establishing product and sales strategies," and added, "We will provide marketing solutions based on logistics to brand companies."

Meanwhile, Naver aims to apply the Delivery Guarantee solution from fast-moving consumer goods (FMCG) such as food and beverages and daily necessities, expanding its share to half of the FMCG category by 2025. In the mid to long term, it plans to broaden the range of Delivery Guarantee products and apply it to the global commerce market as well.

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