E-commerce leaders race to enhance logistics for faster delivery

Jun 02, 2025, 10:23 am

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South Korea’s major e-commerce companies are going all-in on logistics innovation as delivery speed increasingly defines service quality. Companies such as Coupang, Naver, and Olive Young are deploying everything from advanced infrastructure and software platforms to artificial intelligence (AI) to sharpen their competitive edge.

 

According to industry sources on June 1, Coupang is enhancing its AI-powered demand forecasting system to strengthen its ultra-fast delivery capabilities. By analyzing tens of millions of product data points with machine learning, the system predicts items customers are likely to purchase and pre-positions them at nearby fulfillment centers. This predictive logistics model enables same-day and next-day deliveries, a core advantage for Coupang.

 

Automation and AI also drive warehouse efficiency. Technologies like "random stow" guide optimal product placement and worker movement, AGVs (automated guided vehicles) bring shelves to workers, and sorting robots automatically classify products by destination. AI even recommends the best loading patterns and delivery routes for drivers.

 

“Coupang leverages vast data—trillions of transactions—to deeply integrate AI throughout its logistics process, from order prediction to final delivery,” a company representative said. “Our AI- and automation-driven logistics infrastructure is what powers Rocket Delivery.”

 

Naver, on the other hand, is focusing on platform-based logistics rather than direct fulfillment. Rather than operating its own warehouses, it provides fulfillment services to third-party sellers. This year, Naver is increasing direct contracts with logistics companies to evolve its platform into one that fully manages sales, logistics, and customer service.

 

Through this model, sellers can easily offer "same-day delivery," while Naver strengthens its influence as a logistics platform. True to its tech-first philosophy, Naver is prioritizing software solutions over hardware-heavy logistics, optimizing costs and enhancing user convenience.

 

Olive Young is also accelerating its logistics strategy. By expanding micro-fulfillment centers (MFCs) in urban areas, it is improving the quality of its same-day delivery service, "Today Dream." Last year, the company opened six new MFCs in regional cities such as Busan, Gwangju, Gyeongju, and Jeonju, bringing its nationwide network to 17 centers.

 

To further enhance nationwide inventory management and store supply, Olive Young opened a new 12,000-pyeong logistics center in Gyeongsan earlier this year, with 90 percent of its processes automated. The center also supports the company’s growing K-beauty exports. Last August, Olive Young opened a dedicated global logistics center in Anseong, doubling its daily international shipping capacity.

 

The race to optimize logistics stems from the understanding that fast, reliable delivery directly impacts customer loyalty. Products available for same-day or next-day delivery see higher conversion and repeat purchase rates.

 

“Perceptions have shifted—delivery is now synonymous with service quality,” one retail industry insider said. “E-commerce players are not only competing on speed, but also on delivery reliability, compensation policies, and personalized service to enhance the overall customer experience.”

#Coupang #Naver #Olive Young 
Copyright by Asiatoday