Naver fastens delivery through partnership with CJ Logistics

Pulse 2022. 5. 11. 14:27
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[Source: Naver Shopping]
South Korea's internet giant and No. 1 e-commerce player Naver is joining the same-day and early-morning delivery race through partnership with CJ Logistics Corp.

The partnership is part of a 600 billion won ($470 million) equity swap agreement the two entered in 2020.

In 2021, Naver collaborated with CJ Logistics to start offering overnight delivery services by adding two fulfillment centers in the Gyeonggi Province.

An increasing number of customers on Naver Shopping have been using the next-day delivery service provided by CJ Logistics. In April, the volume of next-day deliveries went up 2.4 times and the monthly gross merchandise volume (GMV) by 2.5 times compared to June last year. The number of brands that used next-day deliveries surged by more than 3.9 times to 137, also compared to June last year.

Cos Nature, which operates health functional food brand Dr. Lean, reported that its GMV quadrupled over six months since it first started using next-day delivery services.

Starting May 2, Naver and CJ Logistics began testing same-day deliveries for select products. The items were delivered on the same day as long as the orders were placed by 10 a.m.

The two companies are planning to test the so-called dawn deliveries during the second half of the year.

Naver and CJ Logistics also plan to more rapidly build fulfillment centers to improve the various delivery options.

During the first half of the year, they plan to establish a facility in Icheon sometime in June following the opening of facilities in Yongin and Yeoju. In the second half of the year, the two will add at least three fulfillment centers.

Various smart logistics such as Naver Clova Forecast and CJ Logistics’ automated guided vehicle (AGV) are currently being tested at the fulfillment centers.

Shares of Naver were up 0.36 percent at 277,000 won while shares of CJ Logistics were up 4.94 percent at 127,500 won on Wednesday.

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