Ali and Shinsegae Join Hands with CJ... Expected Benefits from 7-Day Delivery Service

"Not a Change That Shakes the Entire Landscape" Analysis
Strengths in Fast Delivery Beyond Holiday Shipping Like Coupang

CJ Logistics is set to start seven-day delivery, including Sundays and public holidays, from next year, drawing attention to whether this will cause a ripple effect in the e-commerce market, which has been reorganizing around Coupang. Among companies struggling with recent growth slowdowns and intensifying competition, there is hope that weekend delivery could become a new breakthrough.

According to industry sources on the 20th, CJ Logistics plans to launch a tentative service called 'Everyday One' early next year, centered on seven-day delivery, enabling e-commerce companies to sell and deliver products throughout the week without building their own logistics systems. Domestically, Gmarket and SSG.com, which have entrusted or are negotiating delivery volumes with CJ Logistics, are expected to benefit, while internationally, AliExpress is likely to gain advantages. Other e-commerce companies such as 11st will also be able to offer holiday delivery if they partner with CJ Logistics in the future.

Until now, holiday delivery was only possible on some platforms like Coupang and Kurly that have their own delivery networks. Because of this, companies with their own delivery networks such as Coupang and Kurly have held the initiative in the e-commerce market and continued their growth. Meanwhile, domestic e-commerce companies have faced profitability warnings amid the invasion of so-called 'Altesh' C-commerce (AliExpress, Temu, Shein), which emphasizes ultra-low-priced products.

Looking at the actual performance of domestic e-commerce companies this year, Coupang posted an operating profit of $15 million (about 20.5 billion KRW) in the first half of the year. Kurly also recorded an operating profit of 525.7 million KRW on a separate basis in the first quarter, achieving its first profit in nine years since its establishment in 2015. On the other hand, Gmarket and SSG.com, which do not have their own delivery networks, posted operating losses of 7.6 billion KRW and 16.9 billion KRW, respectively. 11st also recorded an operating loss of 37.8 billion KRW in the first half of this year.

Coupang Rocket Delivery stock photo / Photo by Moon Honam munonam@

In the distribution industry, if CJ Logistics, the largest delivery company in Korea, starts holiday delivery, the range of e-commerce choices will expand, triggering healthy competition that leads to overall industry development and increased consumer benefits, creating a 'virtuous cycle' effect. If holiday delivery becomes possible, attracting customers will become easier, improving profitability. An industry insider said, "In the case of open markets such as SSG.com, Gmarket, and 11st, as services expand, fair competition with companies like Coupang that have their own delivery networks is expected."

However, there is also analysis that seven-day delivery will not be a change big enough to shake the entire e-commerce industry landscape. Another industry insider said, "Coupang and Kurly have captivated consumers not only because of holiday delivery but also due to their fast delivery systems (Rocket Delivery and Dawn Delivery). Even if holiday delivery through CJ Logistics becomes possible, it will be difficult for consumers to give up the merits of Rocket Delivery or Dawn Delivery, which allow ordering the night before and receiving delivery early the next morning."

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