Warehouse-Sharing Business Landscape in Indonesia Ecommerce in 2020

GlobalWebIndex reports that Indonesia has the highest rate of ecommerce use of any country in the world, with 90 percent of the country’s internet users between the ages of 16 and 64 reporting that they already buy products and services online.

Ecommerce and online services adoption in Indonesia at the last decade doesn’t face any big obstacle – despite of its relatively low penetration and connection speed of internet services due to Indonesia’s big archipelago island country-type.

As we know, many unicorn and startup companies has been emerged from Indonesia by the touch of their Indonesian founder, to name it a few: Gojeg, Tokopedia, Bukalapak, etc.

The rapid development and penetration of ecommerce adoption among Indonesia consumers makes online business model likes online stores, ride-hailing, SME local brands, and its ecosystem grow in a high incremental rate.

At the 2010s decade, one of a industry in the Indonesia ecommerce ecosystem that enjoy the same kind of rapid growth is logistics delivery industry.

There are so many raising star companies in logistics delivery industry that emerge from nothing-to-really-something: JNE, J&T, Sicepat, Anteraja, Deliveree, and many others.

In the perspective of business and brand owners – with the rapid growth of their online business and sales – they don’t want to get involved too much in operational aspects, for example: the logistics delivery.

Many business and brand owners prefer to outsource the delivery of their products to 3rd parties, with the hope to decrease their headache – and more focus on developing and growing their brands, product strategy, and sales-marketing.

At the 2010s decade, outsourcing delivery tasks to 3rd party companies is a very common and acceptable business pratice, being rapidly adopted by many business and brand owners. We couldn’t imagine the same thing in decades before year 2010.

And now, with the year has come to the new decade – the 2020s decade – following the wide adoption of logistics delivery service, a new trend emerges in Indonesia online business: 3rd party warehouse-sharing.

What is exactly Warehouse Sharing?

Warehousing-sharing is a business model that allows brand owners and business owners to outsource storage and warehousing of their goods to third party companies. The overall operation tasks such as logistics in-bound, out-bond, storage, stock, & inventory management is handed-over to a company(ies).

Meanwhile, land-lords and space owners can utilize unused space by lending their building or small unused part of their area to warehouse-sharing provider, with some sharing-profit model as revenue generator.

The raise of sharing economy in Indonesia has given born to 3rd party warehouse-sharing service. Several startup in warehouse-sharing business models has born: Haistar, Crewdible, Keeppack, Pakde, etc. to name it a few. Some of them were just founded not more than 2-3 years ago.

Now, for the shake of more concentrating on developing their brand image & sales, brand owners & business owners don’t have to tackle the operational of handling their own goods, storage, distribution, and delivering the products to their customers.

Warehouse-Sharing Business Landscape in Indonesia Ecommerce in 2020

So, without further ado, let’s we do some profiling review of the startup companies in warehouse-sharing business in Indonesia:

HAISTAR (http://www.haistar.id/)

  • Founders: A-commerce company graduates, part of Sicepat Group
  • Services: Warehouse Management, Store Operation, Channel Management, Delivery, Warehousing, O2O Model
  • Business Growth: 2.000% (20 times) growth on year 2019
  • Revenue Generator: space rental for certain periods with fixed price
  • Their Strategy: Simple & Direct warehousing services. Community Penetration (gathering) such as Ecommerce Seller Community, Mitra Tokopedia, Mitra Driver Gojeg, Saudagar Indonesia, PPM Management, attend event gathering as speaker, team gathering for internal bounding
  • Clients: Torch.id, Mama’s Choice, Sophie Paris, Pos Indonesia, Paroparoshop, Zilingo
  • Characteristics: very active at social media (Instagram, FB) with many stunning infographic

CREWDIBLE (https://crewdible.com/)

  • Founder: Overseas graduate (from Canada university), founded on 2016. They just got new funding worth Rp 20 bio (on Q3-2019)
  • Services: Warehouse Management, Sales Report, Customed Packaging, Customer Services, Warehouse Partnership with space owners (Mitra Gudang)
  • Business Growth: 4.000% (40 times) growth on year 2019
  • Revenue Generator:

DELIVERY: 3.5% commission max 10k, 50k, or 100k per 10 pcs (doubled every 20 pcs, 30 pcs, 40 pcs) contract based per 2 months, free inbound

STORAGE: Rp 1750 / CBM / day, insurance 0.25% of value / year, helper Rp 75k / person, forklift Rp 450k / 3 hours)

CUSTOMER SERVICE: as sales admin (response to buyer, handling complaint, fulfilment, SKU upload) with cost Rp 2 mio (600 transaction for max 3 ecommerce platform), Rp 1.5 mio for extension (600 transaction for max 3 ecommerce platform)

QUALITY CONTROL: Rp 500/pcs (for inspection time < 5 sec/pcs), Rp 1300/pcs (< 15 sec/pcs), Rp 1500/pcs (<30 sec/pcs)

  • Their Strategy: Most comprehensive & complete services, using commission as revenue generator, have great rating mechanism for their warehouse (“kinerja & kejujuran” rating, plus maps & photo like Airy Rooms booking page), rapid penetration in new warehouse partnership (get 20% commission from Seller’s payment to Mitra Gudang), Service Level Agreement (SLA) 80% will be delivered within 2 hours with maximum 1×24 hours, Referral Commission for new Sellers (50k + 60k, top-up to Crewdible credit)
  • Clients: Leifjenkins, Mycallaluna, Bengkeles, Gudgadget, Momyshop
  • Characteristics: seems like not a good middle-man between Sellers-Mitra Gudang (doesn’t want to be too much involved in sellers & Mitra Gudang coordination, tend to just initiate the contact between Sellers & Mitra Gudang), time limit for warehousing: 6 months

PAKDE (https://pakde.co.id/)

  • Founder: ITB graduate from Industrial Engineering
  • Services: Warehousing (Rp 50/item/day), QC (Rp 2k/item), Stock Management, Packing (Rp2k/order), Delivery
  • Clients: Hijup (the owner is Bukalapak founder’s wife, most likely got the link from ITB network), Alsjeblief.id, other 15 local brands

KEEPPACK (https://keeppack.id/)

  • Founder: Bina Nusantara graduate, founded on 2019
  • Services: Warehouse Management System, Storage, and Inventory Management with fixed-cost depended on CBM (cubic meter) rented

Warehouse-Sharing Business Ideas

We try to analyze & suggest some ideas on how to improve the warehouse-sharing industry & its startups, because we see a huge potential in the industry with the raise of sharing economy concept which already widely been accepted in Indonesia:

  • To enable direct inbound process from business/brand owner’s Supplier to Warehouse
  • Business/brand owners need to be given a huge autonomy in picking their own preference warehouses, and to know the warehouse’s rating given by the users
  • Startup companies can approach outer Java business/brand owners who want to penetrate to Java market by using their warehouse management services
  • Startup companies need to get more discount and mutual benefit cooperation from courier services, by implementing good account management approach
  • Startup companies can offer customer management and sales administrator services (like Crewdible already offers), provide digital marketing service (online website, social media admin, digital ads, etc.) or many other operational added-value services to make everything be more automatic for business & brand owners to concentrate more on their business aspects
  • Getting very engaged with online sellers community & association, for example Tokopedia Seller Community, Asosiasi Pengusaha Komputer Indonesia, etc.

So, what do think? Will it become the next breakthrough in Indonesia ecommerce landscape at the next 2020s decade? Or will it just become a small, tiny wave in the blue ecommerce ocean?

– Gustaf Ardana


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