Premia TNC Taiwan Team
Author
Taiwan is a rapidly growing e-commerce market, and Coupang’s recent entry into Taiwan and its rapid growth offer new opportunities for Korean sellers. However, choosing Coupang alone without comparing it with established platforms like Momo and Shopee can be risky. This article summarizes the characteristics, strengths, weaknesses, and entry strategies of the three leading online shopping platforms in Taiwan, based on robust data.
Exploring the Details and Perks of Coupang in Taiwan
Core Details:
- Established a logistics center in Taipei in July 2021 and entered the Taiwanese market in earnest.
- Improve customer satisfaction by providing quicker deliveries within 1 to 2 days through Rocket Delivery service.
- Reduce the burden on sellers and support efficient operations by batch processing logistics and customer service based on fulfillment.
The Perks:
- Advantageous for early brand building using a premium image.
- There is a high preference for Korean products in the Taiwanese market.
- Gain a first-mover advantage by entering the market early on as a new platform with less competition.
Considering the Details and Upsides of Momo in Taiwan
Core Details:
- It boasts a long history, having started its online shopping mall service in Taiwan in 2005.
- Annual sales of approximately 52 billion (approximately KRW 2.2 trillion) are expected to be achieved by 2023.
- Known for a highly reliable distribution network with a multi-channel distribution system that combines shopping on numerous fronts.
The Upsides:
- A loyal customer base of over 10 million.
- It is a platform that is advantageous for building a brand image, and stable sales can be expected in the mid- to long-term.
- A reliable platform with a high repurchase rate based on a fixed customer base.
Understanding the Strengths of Shopee in Taiwan
Core Details:
- Launched in Singapore in 2015, it quickly entered Taiwan in the same year and achieved a high market share.
- A platform with a large traffic volume, with over 56.4 million monthly visitors.
- Mobile-centric strategy, user-centric design, and excellent UI/UX.
The Strengths:
- Low entry barriers and easy store opening procedures make it advantageous for small and medium-sized sellers.
- Rapid product exposure and diffusion through SNS and influencer marketing.
- Advantageous for sellers who value price competitiveness, focusing on low-price promotions.
Comparing Sales Strategies Across Platforms
Considerations | Coupang Taiwan | Momo | Shopee |
Entry Period | 2021 | 2005 | 2015 |
Primary Target Audience | Fast delivery, | A loyal customer base, prioritizing trust. | Generation Z is sensitive to low prices and social media. |
Method of Sales | Fulfillment-focused. | Genuine-centered branding | Low-price promotion-focused, event-oriented. |
Volume of Traffic | Mid-to rapid growth stage. | Secure fixed loyalty. | 56.4 million monthly visitors, the highest. |
Recommended Products | Premium lifestyle products, K-beauty. | Home appliances and 3C products. | Fashion accessories, practical miscellaneous goods. |
Operating Costs and Fees of Online Shopping Malls in Taiwan
Coupang
Fulfillment fees are somewhat high, but the integration of delivery, customer service, and logistics improves operational efficiency, allowing sellers to reduce the time spent on logistics and customer management.
Momo
The entry barrier is relatively high, with high screening requirements and fees. However, it boasts high customer trust and repeat purchase rates, enabling stable profits in the medium to long term. Its high level of trust among local Taiwanese consumers makes it a suitable platform for sellers who prioritize brand loyalty.
Shopee
Offering low fees and high exposure, it offers a low barrier to entry and is advantageous for sellers with a rapidly rotating product line. However, it tends to be highly competitive on price, making it difficult to secure margins.
Choosing the Right Strategy for Each Platform
When entering the Taiwanese e-commerce market, it’s crucial to select a platform that best suits your product characteristics and long-term business goals. The optimal sales strategy should be developed based on each platform’s fee structure and operating model.
1. Brand-Driven Sellers with Premium Product Lines
Recommended Platform: Coupang Taiwan
Coupang’s logistics efficiency and excellent customer service, which can offset its high fulfillment fees, make it advantageous for sellers with a strong brand image and premium product lines.
2. Sellers Committed to Lasting, Trustworthy Transactions
Recommended Platform: Momo Taiwan
With high customer trust and repeat purchase rates, it’s ideal for sellers who prioritize mid- to long-term stability.
3. Sellers with Budget-Friendly Products and Fast Market Entry
Recommended Platform: Shopee Taiwan
Low fees and high exposure make it ideal for sellers seeking quick market entry and competitive pricing.
Your Gateway to Local Taiwanese Expertise
Founded in 2003, Premia TNC offers a one-stop solution, from corporate establishment to tax management and visa acquisition, with a dedicated Korean language support team providing professional consulting in key locations including Hong Kong, Singapore, Vietnam, Taiwan, and Dubai.
Premia TNC Taiwan Team
Author
Premia TNC Taiwan is a dynamic team of experts dedicated to supporting businesses and entrepreneurs as they establish, manage, and grow their presence in Singapore and across the region. Premia TNC Taiwan specializes in providing tailored corporate services, from company incorporation and compliance to tax planning and accounting. With our extensive experience and deep understanding of the local regulatory environment, we are here to make business operations smoother and more efficient.
