Naver, CJ Logistics will soon guarantee packages on time, they hope

Naver introduced “Naver Guaranteed Delivery Program,” a data-based logistics service jointly run by CJ Logistics, on Thursday.

Lee Yoon-sook, head of the Naver Forest CIC division, speaks during a press event held Thursday at Coex in southern Seoul. [NAVER]

Naver, operator of an e-commerce marketplace, introduced “Naver Guaranteed Delivery Program,” a data-based logistics service jointly run by CJ Logistics, on Thursday.

With the guaranteed delivery program, Naver said it will make it up to customers if their parcel doesn’t arrive on time.

“We asked our customers what they want from our delivery service,” said Jang Jin-yong, head of the new business at Naver’s Forest CIC e-commerce division, during a press event held at Coex in southern Seoul. “It boiled down to two things: fast delivery, and a guarantee that it will be on time.”

“Based on Naver’s technology and data, we will predict precisely when a product will be delivered, and compensate the customer if it does not arrive on time,” said Jang. A specific amount or method of compensation is yet to be decided, according to Naver.

Up until now, Naver has been providing a percentage figure for the estimated arrival time of a delivery, such as “95 percent likely to arrive tomorrow.”

Jointly developed and operated with CJ Logistics, the new service will cover about 91 percent of Korea for overnight delivery, meaning most customers will be able to get a parcel delivered within a day from when the order was made.

CJ Logistics and Naver have been working together to provide e-commerce services, and swapped 300 billion won ($210.7 million) worth of stocks in 2020.

The guaranteed delivery program comes with a set of data-based marketing services for sellers, said Naver.

“We wish to pave a way for brands to directly reach customers,” said Lee Yoon-sook, head of Naver Forest CIC. Naver plans to provide customer analysis and logistics-related data for sellers on their marketplace along with the delivery guarantee.

The service is enabled by what Naver calls the Naver Fulfilment Alliance, a network of e-commerce players encompassing sellers, logistics center operators and delivery services.

Unlike the retailer model adopted by Amazon, in which retailers build their own logistics centers and operate the whole delivery system, a network-based model connects different companies to create logistics channels, such as Shopify’s fulfillment network.

The Naver Guaranteed Delivery Program will be available starting December.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]