Between Naver and Coupang - The Shifting E-commerce Platform Ecosystem
'Has the Golden Era of SmartStore Ended?' - Naver's Commerce Ecosystem at a Crossroads
Naver is completely pivoting its advertising platform strategy toward a brand-centric approach. Major brands are investing more to adapt to this ecosystem, while small sellers are increasingly being marginalized. Here's why small commerce sellers find themselves struggling to navigate between Naver and Coupang.
❶ Point of View | What Has Changed
Naver's advertising platform is no longer for everyone. Naver is boosting its commerce advertising revenue while simultaneously building a "customized ecosystem" centered around Naver Plus Membership and Brand Stores. In this structure, advertising efficiency is concentrated among major brands, and individual sellers are gradually losing their foothold.
❷ Inside the Move | Current Strategy and Implementation
1. Advertising Revenue is Growing
- As of Q1 2025, Naver's commerce advertising revenue reached 308.3 billion KRW (+16.4% YoY), setting a new record high. Naver attributed this growth to the launch of Naver Plus Store, optimization of advertising spaces, and improvements in recommendation-based advertising.
- However, declining ad efficiency and brand concentration are generating increasing complaints from smaller sellers.
2. 'Vouchers' Directly Connect Membership with Brands
- Pet Voucher: Starting April 28, 2025, Naver began beta operation of its voucher service, which provides customized discounts and points when members register their pet information, available to all membership subscribers at no additional cost.
- Additional Benefits: Partner brand coupons, point accumulation (up to 10%), and additional benefits when using Naver Hyundai Card, including up to 7% points accumulation and 10% immediate discount.
- Partner Brands: A total of 11 brands including 'Royal Canin', 'Hills', and 'Hangoyeonmall' are participating.
3. Personalization + Brand Advertising = Naver's Formula
- The platform provides product recommendations and periodic reminders based on member data to deliver personalized shopping experiences.
- Starting with 'Pet Voucher', Naver plans to expand benefits to major life stages including marriage, childbirth/parenting by the end of this year.
- Advertising is shifting from 'available to all brands' to a structure 'focused on selected brands'.
❸ Business Playbook | Strategic Roadmap
| Stage | Implementation Strategy | Expected Effect |
|---|---|---|
| Stage 1 | Expand Naver Plus Membership | Strengthen user lock-in |
| Stage 2 | Design customized benefits through vouchers | Increase conversion rates |
| Stage 3 | Operate with brand partners at the center | Raise advertising costs |
| Stage 4 | Apply SmartStore separation policy | Maximize advertising revenue |
| Stage 5 | Life stage expansion → AI recommendation integration | Enhance shopping data sophistication |
❹ Market Impact | Changes in the Market
Naver's SmartStore Commission Increase
- Naver has abolished its inflow commission policy and changed to a sales commission system. From June 2025, SmartStore commission will be 2.73% and BrandStore will be 3.64%.
- For sales through self-generated traffic (inflows from self-marketing), discounted rates of 0.91% for SmartStore and 1.82% for BrandStore will apply.
Small Sellers Departing Due to Declining Ad Efficiency
- The phenomenon of increased advertising costs versus decreased exposure is intensifying.
- Cases of sellers migrating to other channels like Coupang are increasing.
BrandStore Focus → Solidification of 'Capital is Power' Structure
- The number of brands in Naver's BrandStore has surpassed 2,000, and BrandStore is contributing to Naver's commerce growth and operating profit improvement with its high profitability.
- Only brands survive, while SmartStore-based small-scale sellers are increasingly losing competitiveness.
- Sellers without advertising budget capacity are disadvantaged in search exposure.
❺ Competitor Matrix | Comparison
| Category | Naver | Coupang |
|---|---|---|
| Membership Strategy | Enhanced personalized brand experience through vouchers | Lock-in through Rocket Wow focusing on delivery and price |
| Ad Structure | Brand Store-centered | Rocket Growth-centered |
| Seller Experience | Declining ad efficiency, increased fees | High ad burden but better sales conversion |
| Recent Changes | Pet Voucher launch, fee system restructuring | Taiwan direct shipping, automatic bundle/return flat-rate system, 45% expansion of same-day/early morning delivery volume |
❻ Beyond the Numbers | Market Signals and Future Variables
Naver has launched 'Naver Plus Store' as a separate app based on AI personalized shopping service, officially intensifying competition with Coupang. If this brand-centered recommendation structure continues, Naver's commerce ecosystem is likely to become even more asymmetrical.
Mass exodus of small sellers could lead to reduced commerce diversity and degraded user experience.
Conversely, the voucher-based commerce ecosystem could become a powerful weapon in terms of advertising efficiency and profitability.
Coupang is entering a new growth phase through Taiwan market entry, introduction of automatic bundle systems, and logistics infrastructure expansion. In particular, they are building fulfillment-based services in Taiwan by leveraging their success know-how from Korea.
❼ Summary Insight | Key Insights
Naver is now evolving from an advertising platform into a 'personalized brand shopping platform'.
This trend leads to a strategy of strengthening brand advertising revenue centered on Naver Plus Membership and data-based recommendations.
The problem is that small sellers who cannot enter this ecosystem are gradually being eliminated.
Platform sophistication translates to entry barrier sophistication. Brands are forced to pay more for advertising, while sellers face an increasingly difficult survival game.
Between Naver and Coupang, which platform can provide 'better cost-to-efficiency ratio'? This question will determine sellers' choices.