“More than 23 million Coupang members visit the application (app) an average of four times a day to purchase items or leave reviews, among various activities. Based on this data, Coupang ensures that products desired by consumers are displayed in a timely manner and helps small business owners grow.”
Caleb Hill, the vice president of Coupang’s institutional sector, noted during a keynote speech titled “Coupang Innovates the Korean Retail Market and Small Business” at the ’2025 ChosunBiz Consumer and Retail Forum' held on 11th at the Westin Josun Hotel in Jung-gu, Seoul, ‘We pride ourselves on having the most diverse and accurate data regarding shopping in Korea’s e-commerce market.’ He explained that they use machine learning based on user data to predict the performance of advertisers' products and prioritize product listings.
In particular, Vice President Hill explained that this advertising system has greatly contributed to the growth of small business owners. According to Hill, more than 270,000 small businesses are active as sellers on Coupang, accounting for over 75% of all sellers. Coupang’s small business partners grew by 20% in 2023, which is three times faster than the national average (7.4%).
Vice President Hill said, “Many small business owners often lack the capacity to focus on marketing, and we help them concentrate solely on the products themselves,” adding, “We have built a customized advertising system using the vast amounts of data and artificial intelligence (AI) solutions that Coupang possesses.”
He continued, “Based on purchase history, machine learning can better determine which products to expose to specific individuals than humans can.” Consumers who buy salt are likely to buy pepper soon after, and those who purchase diapers are also likely to buy baby lotion for their child, meaning that machine learning can predict when and what products consumers will buy.
Coupang has vast data because most of the Korean consumer population uses its e-commerce platform, which allows for preparation not only for currently popular products but also for items that may surge in specific situations, Hill explained. He noted, “In January, due to abnormal weather, sales of outdoor items like camping mats, lunch boxes, and camping meal kits surged by 689% compared to the average year,” adding, “Advertisers may find it difficult to decide to concentrate advertising on outdoor activity products in January, but AI can help prepare for such situations.”
According to Coupang, from 2020 to 2023, the annual revenue of 9,000 small business partners surpassed 3 billion won, growing from small businesses to large companies. Hill commented, “According to Coupang’s own research, 78% of advertisers said that advertising operations are not difficult,” adding, “While this is a high percentage, it is not yet 100%, so we will work even harder.”