A recent policy adjustment by Coupang initially appeared to spell the end for many marketplace sellers who relied on the dropshipping model. However, just as observers declared the era of mass product listing over, the introduction of CGF LITE has quietly reopened opportunities for this business approach in a modified form.
In July, Coupang implemented significant changes to its fulfillment policies, eliminating self-shipping privileges for certain established and new stores, mandating instead that sellers use either CGF (Coupang Fulfillment) or CGF LITE services. This shift forced merchants to route inventory through official warehouses, creating substantial challenges for sellers accustomed to rapid product listing and trend-following strategies. While many chose to exit the platform, those who remained gradually discovered that CGF LITE bears increasing resemblance to the previous dropshipping model in several key aspects.
Although Coupang's long-term strategy clearly favors premium product curation, recent policy developments suggest the platform is intentionally creating operational flexibility within the CGF LITE framework. Whether used for broad product testing or as a tool for identifying potential bestsellers, CGF LITE maintains both viability and effectiveness. Notable changes include extended processing windows (from 1-2 days initially to 1-5 days currently), expanding product category eligibility, and faster approval times. These modifications signal Coupang's attempt to balance warehouse standardization with merchant adaptability.
Historically, sellers leveraged self-shipping to flood the marketplace with listings, maximizing order opportunities. While the original method has disappeared, the underlying strategy persists through CGF LITE. Fundamentally, product testing methodologies remain unchanged. Sellers must now navigate three primary distinctions between the old and new systems:
Key Operational Differences
1. Category Restrictions: The self-shipping model imposed fewer product category limitations, allowing greater merchant autonomy. While CGF LITE maintains certain category constraints, the platform continues to expand eligible classifications, gradually restoring seller options.
2. Approval Timelines: Self-shipping enabled near-instant product listing approvals. CGF LITE's review process operates more slowly, though platform improvements are steadily reducing processing durations.
3. Listing Modifications: Self-shipping permitted direct product information edits, facilitating quick optimizations. CGF LITE requires formal modification requests, creating administrative hurdles. Consequently, sellers should prioritize comprehensive initial listing setups to minimize revisions. Higher-quality listings not only meet platform standards more effectively but also drive better conversion rates.
The extended five-day processing window under CGF LITE has inadvertently enabled dropshipping-style operations. Merchants can test products through third-party fulfillment arrangements, then transition successful items to CGF warehouses. This approach mirrors traditional dropshipping in practice while conforming to current platform requirements.
Strategies for CGF LITE Success
While CGF LITE reduces operational flexibility compared to self-shipping, sellers can compensate through meticulous attention to detail—particularly in listing optimization and product selection. These skills develop through consistent practice and ultimately determine marketplace performance. The critical factor remains understanding platform policies and creatively applying CGF LITE functionalities to individual business models.
Product Selection: Market research and data analysis help identify promising merchandise with competitive differentiation potential.
Listing Optimization: Compelling product titles, descriptions, and images significantly impact click-through and conversion metrics.
Precision Management: Monitoring traffic patterns, conversion rates, and average order values enables data-driven operational adjustments.
Service Excellence: Responsive customer service and efficient issue resolution foster customer loyalty and repeat business.
CGF LITE represents both a challenge and opportunity for marketplace sellers. By aligning with platform evolution and refining operational competencies, merchants can continue thriving under Coupang's restructured marketplace environment.