Annual sales of South Korean e-commerce company Coupang jumped 40 percent last year to 2.68 trillion ($2.49 billion), amid its move to strengthen direct buying of foreign goods and solidify its signature Rocket Delivery service. 

The increase in profit has been attributed to reducing the rate of operating loss, calculated by net loss divided by turnover, improving from 30 percent in 2016 to 24 percent last year. It logged 638 billion won in losses as of last year. 

The company’s gross profit stood at 518.1 billion won last year, up by 33 percent from 389.6 billion won in 2016.

Coupang has been making an aggressive move in terms of investment into expanding its distribution infrastructure. 

It has also diversified product categories. As of this month, there are 7 million different products worth 400 billion won being sold at Coupang, -- compared to 70,000 kinds at the average supermarket chain -- according to the company. 

Its product inventories are valued at 288.4 billion won, while its 54 distribution and logistics centers across the country have an inventory turnover at 12 times a year, meaning that these centers were emptied and filled up again with products 12 times last year.

Coupang has also began venturing into direct buying of foreign goods that are popular in Korea, such as foreign books, organic food, pet items and home and kitchen appliances. It will expand its categories of consumer electronics, fashion, sporting and leisure goods, the company said. 

“About 99.7 percent of our customers can now order millions of Rocket Delivery items as late as midnight and receive them within a day. We are determined to serve our customers with an ever-increasing number of high-quality products coupled with fast, convenient, and stress-free delivery,” said Coupang CEO and Founder Kim Bom.

By Kim Da-sol (ddd@heraldcorp.com)