Gmarket, CJ Logistics to launch guaranteed delivery date service

Gmarket Inc., an e-commerce arm of South Korea’s Shinsegae Group, said on Monday it will roll out a service to deliver products on the customer's request date in collaboration with CJ Logistics Corp. to catch up with its bigger rival Coupang Inc.

The new delivery service, dubbed Star Delivery, will guarantee the delivery of products by the date of the request or the next day of the order if placed by 8 p.m., starting on Sept. 26.

If the delivery is delayed, Gmarket will compensate its customers with reward points worth 1,000 won (75 cents) per order.

Their partnership is based on the memorandum of understanding the two companies’ parent groups signed in June this year.

They will offer the guaranteed delivery date service for some 150,000 types of products in 14 categories, including daily necessities, kitchenware and home appliances. The service will expand into a broader range of products and categories later on.

GMarket expects that the fast delivery service will increase customer satisfaction with delivery while reducing the payment settlement period and boosting sales for sellers on its platform.

With Star Delivery, Gmarket will become the second South Korean online marketplace that connects sellers and buyers and guarantees next-day delivery after Naver Corp., the country’s largest online portal.

The Star Delivery will also cover bundled products, giving Gmarket an edge over Naver.

Industry observers said it is meaningful that the guaranteed delivery date service is offered by open online marketplaces that connect buyers and sellers.

Previously, such delivery services were available mostly on direct purchase platforms such as Coupang that secure products and store them in their warehouses before their orders are placed.

The partnership between Gmarket and CJ Logistics comes as the latter is slated to roll out a seven-day-a-week delivery service next year. The move is aimed at fending off competition from Coupang, which has been bolstering its own logistics network.

“On top of Gmarket's price competitiveness and product diversity, it will further improve shopping convenience by providing a predictable delivery service,” said a Gmarket official, referring to Star Delivery.

Write to Hyun-Jin Ra at raraland@hankyung.com
 

Yeonhee Kim edited this article.