Tokopedia introduces fulfillment service TokoCabang

tokopedia_tokocabang_launch

Indonesian e-commerce Tokopedia introduced fulfillment service to help merchants reach out to their without having to set up their own warehouses. The service is also a form of the company’s commitment to its goal of becoming an internet-as-a-service (IaaS) platform.

In a previous interview with DailySocial, Tokopedia Head of Erwin Dwi Saputra explained that the warehouse service can be used by merchants to place their supplies in areas with relatively higher demands.

Customers in the area can finally get their necessities in a more cost and time efficient way.

“We hope that this innovation can provide real solution for the online trade ecosystem, considering Indonesia’s status as an archipelago,” Saputra said.

The company has begun the smart warehouses in several cities in Indonesia, and the initiative will be officially announced shortly.

“We believe that these innovations will serve as a milestone to accelerate our mission of encouraging equal distribution of economy through platforms in Indonesia,” he stressed.

TokoCabang’s business model

Saputra did not give further details on the location of TokoCabang facilities. According to information on the company’s site, the service is being run by PT Bintang Digital Internasional.

The is in charge of all fulfillment , starting from booking management, chat and product discussion response, warehousing, packing, to product shipment through last-mile logistics services.

TokoCabang is not available for products that Tokopedia has banned from its platform. It is also not available for fresh food and beverage products, expired products, products with bigger dimensions than 40cm x 28cm x 28cm, as well as aerosol products.

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Merchants that are able to use the service need to have at least a Gold 1 or Official Store status. Some merchants that have joined the programme are Audio Technica, EMPO, Jabra, Pioneer, and Ria Miranda.

Once a merchant has been shortlisted, they are able to place their supplies in the designated fulfillment locations. There are two components of fees for merchants who would like to use the TokoCabang service: An IDR3,000 (US$0.20) monthly fee per item for products to be kept in the warehouse for more than 60 days.

The fee is claimed to be more efficient compared to having to rent their own warehouse, considering workers’ fee, packing fee, and warehousing fee.

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