Baemin and Coupang Eats: A Closer Look at the 'Win-Win Fee System' with Reduced Commission Rates

The top two players in the food delivery app market, Baemin and Coupang Eats, are set to launch the 'win-win fee system' they agreed upon last year. The main structure is the same: the current 9.8% commission rate will be lowered and applied differentially from 2.0% to 7.8% depending on sales. However, there are differences in how the tiers are calculated and in the commission rates applied to new vendors. As this is the first implementation, industry insiders say it is difficult to judge which method best aligns with the intent of the win-win council. Each company plans to listen to feedback from partner vendors during the implementation process and reflect it in future operations.

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According to Woowa Brothers on the 21st, Baemin partner vendors can now check their win-win fee tier through 'Baemin Self-Service.' Starting on the 26th, Baemin will apply a 7.8% commission to the top 35% of vendors by sales, 6.8% to those in the 35% to 80% range, and 2.0% to those in the 80% to 100% range. Vendors have been able to check which tier they fall into since the 19th.

Baemin's method for calculating tiered commission rates is to calculate the average daily delivery sales for vendors who have used Baemin 1 Plus at least once in the past three months. The tier is determined based on sales from November last year to January this year and will be applied until May. The next tier classification will be determined in May based on sales from February to April and will be applied from June to August.

Baemin to Implement 3-Month Average Delivery Sales Calculation Starting from the 26th... New Stores to Apply 7.8 Priority Rate

On the other hand, Coupang Eats, which will implement the same commission rates as Baemin starting in April, will operate the win-win fee system as a monthly sales rebate model. Initially, a basic intermediary fee of 7.8% will be applied, and then, based on the actual monthly sales from the first to the last day of each month, the win-win fee tier will be determined and the difference refunded the following month. For Coupang Eats vendors, this means they will find out which tier they fall into when they receive their refund a month after implementation, in May.

The two companies also differ in how they assign tiers to new vendors. Baemin applies the basic tier of 7.8% first and then reflects the actual tier in the next calculation period. However, because Coupang Eats uses a rebate system, even if a vendor joins in the middle of the month, the actual sales for that month are used to determine the tier.

Coupang to apply 7.8% from next month and 'payback' the following month based on monthly sales... New store openings also reflected in monthly sales

Opinions are divided among vendors and within the industry. Some say, "Coupang Eats' post-payment rebate method is inconvenient for vendors because they only find out their total sales, including the refunded amount, a month later, making it hard to assess profits and losses." Others point out, "Baemin's three-month calculation period does not reflect temporary drops in sales in the corresponding win-win fee tier." For new vendors, there are mixed views: "It's disadvantageous to start with the highest commission rate on Baemin," while "On Coupang Eats, since new vendors' sales for the partial month are added to that month's total, they are more likely to fall into a lower tier, which could be disadvantageous for existing vendors."

An industry official said, "Commission rates are the most sensitive issue between delivery platforms and partner vendors, so each company will closely listen to feedback during the implementation process and improve their operating methods to align with the intent of the win-win plan."