South Korean e-commerce giant Coupang has implemented stringent measures targeting Chinese sellers, including restricting self-fulfillment options and raising entry barriers for new merchants. These actions come in response to disturbing reports of certain Chinese vendors exploiting low-priced goods as bait to harvest Korean consumers' personal information.
The Data Harvesting Scheme: Too-Good-To-Be-True Deals
This year saw an influx of suspicious Chinese merchants offering products at impossibly low prices—often 70-80% below market rates—only to cancel orders after collecting buyers' personal details. Investigations revealed these "ghost sellers" never intended to ship products, instead using the transaction process to acquire names, addresses, and phone numbers for potential illicit use.
One documented case involved skincare products listed at 11,350 won (≈$8.50), compared to 45,400 won domestically. The seller provided a falsified tracking number showing delivery to an incorrect address before the purchase date, then vanished from the platform.
These operations initially targeted luxury goods like branded apparel before shifting to everyday items—a strategic move suggesting deliberate data collection rather than mere retail fraud. Customer service representatives report escalating complaints about such schemes, with sellers progressing from simple non-delivery to sophisticated tactics like fake tracking and misdirected packages.
Coupang's Countermeasures: Restricting Self-Fulfillment
Beginning July, Coupang banned new Chinese merchants from self-fulfilled shipments, instead requiring them to use Coupang Fulfillment Services (CGF) for quality control. The platform now mandates internationally recognized certifications for Chinese seller approvals and is expanding its CGF infrastructure to better monitor imports.
Consumer protection experts criticize Coupang's delayed response, noting the platform's obligation to vet sellers proactively. The company acknowledges ongoing issues with fraudulent SMS scams impersonating Coupang, exacerbating privacy concerns among users.
Strategic Implications: Protecting the Customer-Centric Brand
Coupang's aggressive stance reflects its foundational "customer-first" philosophy. The platform's reputation suffered measurable damage from the scandal, compelling swift action despite potential collateral impact on legitimate Chinese sellers who flourished during Coupang's earlier China-focused expansion.
The episode serves as a cautionary tale for cross-border e-commerce: sustainable success requires strict compliance and ethical practices. For Coupang, the path forward emphasizes:
- Enhanced quality control through rigorous seller vetting
- Logistics optimization via CGF infrastructure
- Robust anti-fraud mechanisms
- Systemic improvements to user experience
As platforms and regulators worldwide intensify scrutiny of data privacy and merchant accountability, this case underscores the non-negotiable requirement for ethical e-commerce operations in increasingly interconnected digital markets.