Cafe24's seven-days-a-week delivery service for brands’ own online stores has quickly established itself in the market in its first year. Cafe24 said on Wednesday that the number of brands using Cafe24 Daily Delivery, which supports always-on delivery for D2C brands, has increased more than 22-fold in a year since launch. D2C refers to direct-to-consumer sales.
Cafe24 Daily Delivery is a fulfilment service designed to run a seven-days-a-week, 365-days-a-year shipping system without building separate logistics infrastructure. If products are stocked in advance at a Cafe24 partner logistics company, orders are shipped immediately even on weekends and public holidays. Brands can also choose delivery options such as same-day delivery and overnight delivery depending on their strategy.
The growth is also reflected in the numbers. The number of participating brands increased by more than 30 percent a month on average, and monthly delivery volume rose about nine-fold from the service’s early stage. Cumulative deliveries since launch have surpassed 2.73 million. Comparing before and after for brands that have used the service for at least three months, new purchasing customers increased 31.4 percent and total order volume rose 21.7 percent, it said.
Average shipping lead time shortened by 16.9 percent, while weekend orders increased 21.2 percent, expanding orders that had been concentrated on weekdays into weekends. All six key metrics, including order volume, purchase conversion rate and lead time, improved. Based on these results, the service retention rate among adopting brands is over 99 percent and the churn rate is under 0.2 percent.
Cafe24 is currently working with seven logistics companies, including CJ Logistics, Fastbox, FASSTO, Poomgo, WeKeep, Argo and Ourbox. It supports chilled delivery as well as ambient delivery to cover various product categories such as food and beauty products. Cafe24 CEO I Jae-seok (이재석) said, "We will continue to develop the service so that businesses can secure delivery competitiveness without the burden of building logistics infrastructure."