Coupang Data Breach Devastates Small Businesses: Millions Affected, Sales Plummet, Accountability Demanded

Coupang Data Breach Unleashes Financial Strain on Small Businesses

The fallout from a massive data breach at e-commerce giant Coupang is sending ripple effects through the small business community, who are heavily reliant on the platform for their livelihoods. Last week, the U.S.-listed company disclosed that personal information belonging to a staggering 33.7 million customers had been compromised. This breach included sensitive details such as names, phone numbers, email addresses, and delivery information.

Considering Coupang's Product Commerce division, which encompasses its vital delivery services, reported 24.7 million active users in the third quarter, the sheer scale of the leak suggests that nearly the entire user base may have been impacted.

Small Businesses Face Dire Consequences

For many small business owners operating on Coupang, the repercussions have been immediate and severe. Reports from various sellers indicate a significant drop in sales, with some experiencing double-digit declines. This sudden downturn is prompting a reevaluation of their reliance on Coupang, with some actively considering migrating to alternative online marketplaces.

One small business owner shared their plight in an online forum, revealing, "Approximately 70 percent of our online sales originate from Coupang. Since the data breach, orders have plummeted by 30 percent. This incident is a direct assault on the financial stability of sellers." Another seller echoed this sentiment, stating that 90 percent of their revenue typically comes from Coupang, but sales have sharply declined, impacting even the effectiveness of their advertising budget. Traffic has fallen so drastically that daily ad spending is no longer fully utilized.

The impact, however, doesn't appear uniform across all sectors. Businesses in fashion and cosmetics, for instance, have yet to report substantial sales reductions. This could be attributed to the longer purchase cycles characteristic of these markets, meaning the full effect might still be unfolding.

A Looming Crisis for Merchants

The situation could further deteriorate for these vulnerable merchants, especially if consumer trust erodes, leading to an "anti-Coupang" movement or a mass exodus of customers. It's a critical concern given that a staggering three out of every four sellers on Coupang are small businesses. As of 2023, Coupang partnered with approximately 230,000 small and medium-sized enterprises (SMEs), facilitating transaction volumes worth an impressive 12 trillion won (approximately $8.18 billion USD). Coupang's own 2025 Impact Report confirms that SMEs constitute roughly 75 percent of all merchants utilizing the platform.

In light of the escalating crisis, an official from the Korea Federation of Micro Enterprise has issued a strong call to action, urging Coupang to "demonstrate accountability before the damage to small businesses snowballs beyond repair." The demand for immediate and responsible action underscores the urgency of the situation and the critical need for Coupang to address the concerns of its vast network of small business partners.