Consumers Now Weigh "Subscription Efficiency"... Act 2 of the E-commerce Membership War

Beyond Free Shipping, Competition for Tangible Benefits Heats Up
Lock-in Strategies Driving Up Basket Size and Repurchase Rates
Combining Rewards and Content to Compete for Loyal Customers

The e-commerce industry has fully entered a "membership war." Competition is moving beyond the first-generation focus on free shipping, as the key criterion for consumer choice is now the tangible benefits they feel relative to the subscription fee. Each company is betting heavily on locking in loyal customers by increasing rewards rates and combining competitiveness in content, delivery, and grocery (food) services.

According to the industry on the 25th, SSG.com analyzed grocery purchase data for its membership program "SSG Seven Club" and found that from January 7 to February 19, 93% of membership subscribers ordered grocery products such as fresh and processed foods. During the same period, the average basket size for grocery purchases by membership subscribers was about twice that of regular members. Compared with the period before joining the membership, spending on processed foods and fresh foods increased by 23% and 21%, respectively, and the repurchase rate was 27 percentage points higher than that of regular members. This indicates that the membership has actually led to an expansion in consumption.

An SSG.com official explained, "Grocery demand has expanded as the intuitive 7% rewards benefit was combined with product competitiveness based on Emart's sourcing and operational know-how, along with the convenience of SSG Delivery, which allows customers to receive orders at their preferred time."

SSG Seven Club charges a monthly fee of 2,900 won and offers a fixed 7% reward in SSG Money on the payment amount for SSG Delivery (daytime, dawn, and Traders) products. It also provides coupons of up to 7% that can be used at the Shinsegae Department Store Mall and Shinsegae Mall every month. On March 5, SSG.com plans to expand the scope of its membership by launching a 3,900-won plan that combines grocery rewards benefits with over-the-top (OTT) service "TVING" content.

Other companies are also accelerating the expansion of their membership programs. As the Coupang-centered consumption pattern shows signs of cracking, the number of so-called "Talpangjok" customers is increasing, who compare prices and benefits and move between platforms. Companies have concluded that free shipping alone is no longer enough to maintain loyalty. An industry official explained, "Consumers are increasingly calculating 'subscription efficiency.' The structure is shifting from simply checking whether delivery is fast to examining how much they get back relative to their total monthly spending."

Main image of SSG.com SSG Seven Club. SSG.com

Naver Plus Membership (4,900 won per month) offers up to 5% Naver Pay rewards when paying through Naver Shopping, which is its key strength. Together with free shipping coupons, subscribers can choose one content benefit from OTT, music, games, or webtoons. Its defining feature is a platform strategy that bundles search, payment, and content into a single ecosystem.

Kurly’s "Kurly Members" has the lowest subscription fee at 1,900 won per month. However, its rewards structure is tiered by spending bracket. There are no rewards for monthly purchases under 300,000 won; for 300,000 to 500,000 won, it offers 3%; for 500,000 to 1 million won, 5%; and for over 1 million won, 7%. The monthly rewards cap is relatively high at 100,000 won. The program is designed to target "heavy users" who consistently spend above a certain level. In fact, as of December last year, the cumulative number of Kurly Members subscribers had increased by 94% year-on-year.

By contrast, Coupang’s Wow Membership is the most expensive at 7,890 won per month, but instead of rewards or cashback, it emphasizes the absolute benefit of "unlimited shipping and returns." Its core offerings include free Rocket Delivery and Rocket Fresh delivery, as well as free returns.

Gmarket also plans to launch a new rewards-based membership program, "Kkok Membership," within the first quarter of this year. This will be its first overhaul of an independent membership program in nine years, following the industry’s first paid membership "Smile Club" introduced in 2017. Since joining the Shinsegae Group, the key question is whether Gmarket can present a differentiated rewards structure while redefining its role in relation to SSG.com.

A Coupang logistics center in downtown Seoul. Yonhap News

Industry analysts view membership programs as the most direct means of increasing customer lifetime value (LTV). This is because they secure fixed revenue through monthly subscription fees, while simultaneously raising average order value and repurchase rates after sign-up. In particular, the grocery category, where purchase frequency is high, is considered the area where membership effects are maximized. When combined with digital content such as OTT services, these programs can be expanded into subscription models that cover the entirety of consumers’ daily lives.

However, if competition overheats, the possibility of deteriorating profitability cannot be ruled out. Although rewards-based memberships help boost sales, they are also a structure in which marketing costs are paid upfront, meaning that higher transaction volume does not necessarily translate directly into improved profits. This calls for sophisticated profit-and-loss management that takes into account the actual rewards rate, coupon usage rate, and content partnership costs.

Another industry official said, "Membership programs are not just benefit products, but mechanisms for accumulating customer data over the long term. Since they allow platforms to analyze subscribers’ purchase cycles and category expansion paths in detail, they can dramatically improve marketing efficiency from the platform’s perspective."

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