A major fire at a Coupang logistics center in Incheon, South Korea, has entered its fourth day, causing significant disruptions to product deliveries and sales operations. The blaze, which started at the Coupang 32 Logistics Center in Seoknam-dong, Seo-gu, Incheon, has led to widespread concern among both consumers and sellers who rely on the e-commerce giant’s services.
Some customers have been notified of order cancellations, while sellers are actively seeking information about the status of their inventory stored at the affected facility and the procedures for compensation.
Customer Concerns Over Delayed and Canceled Orders
In response to the delivery disruptions, Coupang has reportedly issued 5,000 won (approximately $3.70 USD) coupons to some customers whose orders were canceled due to the fire. An industry insider indicated that these notifications and compensation measures are being extended to customers whose items were slated for shipment from the Incheon logistics hub.
Throughout the weekend, social media platforms and online communities buzzed with inquiries from concerned shoppers. Many users sought to confirm if their orders were dispatched from the Incheon 32 Logistics Center. Questions also arose regarding the process for refunds and compensation in cases of delivery delays or cancellations stemming from the incident.
Some customers shared their frustration online, noting that their orders had not yet shipped despite passing the expected delivery date. Others expressed a desire to cancel their orders if they were associated with the Incheon facility. Coupang’s policy for Rocket Delivery items typically involves providing Coupang Cash as compensation if a product arrives later than the guaranteed delivery date. For items that cannot be delivered, the company proceeds with order cancellations and refunds.
Sellers Face Inventory and Sales Halts
For sellers, the primary concerns revolve around the status of their inventory and the interruption of sales. Online forums and communities frequented by sellers have seen a surge in posts detailing issues such as:
- Inventory listed as zero despite being delivered to the logistics center.
- Products suddenly marked as out of stock on sales pages, even after successful check-in.
- Products becoming unsearchable on the Coupang app.
Many sellers are also inquiring about compensation eligibility for products that were awaiting check-in at the time of the fire or those already sold but now facing potential cancellation. Some sellers claim that inventory stored at other logistics centers in the Incheon area, not directly involved in the fire, has also been temporarily moved to a non-sales status.
One online mall operator, identified as Mr. A, shared his predicament: “My Coupang inventory was suddenly marked as out of stock, and I’ve been receiving numerous inquiries. About half of the recently delivered products to the affected center are missing from my available inventory, and I have to wait until the middle of the month for restocking.”
Another seller expressed anxiety about recovering their sales volume: “After my inventory was marked as out of stock, the product itself became unsearchable on the Coupang app. Even after re-listing the product, I’m worried if I can regain my previous sales figures.”
Incheon Centers Temporarily Halt Operations; Orders Redirected
Coupang issued an urgent notice to sellers on the 19th, stating that inbound shipments and operations at five Incheon logistics centers – specifically 31, 32, 41, 42, and 43 – have been completely suspended due to the fire. These fulfillment centers are currently in a shutdown state, with no clear timeline for resuming normal operations.
The company indicated that further updates would be provided once the reopening schedule is confirmed. Coupang’s logistics centers handle inventory for both its directly managed products (Rocket Delivery/1P) and items managed through its seller delivery service, Rocket Growth (2P). Consequently, a fire at a logistics center impacts not only Coupang’s own stock but also the inventory entrusted by external sellers.
To mitigate the impact, Coupang plans to reroute orders processed by the affected Incheon center to nearby logistics facilities, aiming to minimize operational gaps. However, this redistribution may lead to product shortages or delivery delays in certain areas of Incheon and the Seoul metropolitan region.
Regarding specific compensation for damages, a Coupang representative stated, “Our top priority right now is responding to the fire and ensuring its containment.”
Details of the Incident and Scale
The Coupang 32 Logistics Center in Incheon is a facility that handles fresh produce and general household goods. It spans approximately 300,000 square meters, with a structure extending from the first basement level to the eighth floor above ground.
The fire reportedly broke out around 6:54 PM on the 18th on the sixth floor of the building. The complex internal structure of the center, combined with the presence of flammable materials, has made firefighting efforts challenging. Over 50 hours after the initial outbreak, the fire was still not completely extinguished.
This facility is more than twice the size of the Gyeonggi Icheon Deokpyeong Logistics Center, which experienced a major fire in 2021. The estimated property damage from the 2021 Icheon fire was approximately 400 billion won (about $300 million USD).
