Records Increase in Transactions During Pandemic, Jet Commerce Promotes Service Expansion

The implementation of face-to-face activity restrictions has accelerated the value of shopping transactions online or E-commerce. Service provider "e-commerce enabler" Jet Commerce recorded an increase in overall sales in the fourth quarter of 2020. This also encourages the company's business growth and expansion into a wider market.

Quote from Cash, it is stated that Bank Indonesia (BI) is optimistic about the growth of transaction value E-commerce in 2021 it will grow 33,2% to Rp337 trillion, from the estimated transaction value in 2020 which amounted to Rp253 trillion.

In the fourth quarter of 2020, Jet Commerce recorded its overall sales value increased by 36% from the previous quarter, this is directly proportional to the number of transactions which increased by 53% from the third quarter, reaching more than 750 thousand transactions that occurred on various platforms. marketplace in the last three months.

The largest increase in the number of transactions was in the category of health and beauty products with an increase of more than 80%, and sales value of more than 60%. Then, a significant increase also occurred in the number of electronic product transactions which reached 31% in the fourth quarter, and an increase in sales value of 35% compared to the previous quarter. In addition, the rapid increase also came from the sale of products for mothers and children as well as products for children's toys and pet food.

Jet Commerce Indonesia CEO Webber Chen said, “The industry E-commerce not hit by the pandemic and economic recession that occurred, on the contrary, this industry has experienced very rapid growth in the past year. If you pay attention, the increase in users E-commerce currently helping to encourage business actors, both from the MSME sector and brand, to develop its business by utilizing E-commerce as the main sales channel at this time in order to record positive sales. This pattern is proof that E-commerce play an important role in the process of Indonesia's economic recovery.”

Though E-commerce considered unaffected by the pandemic, even as an alternative channel for the community to meet their needs, many things have changed because of this pandemic. For example, consumer shopping behavior has changed since the pandemic occurred, Jet Commerce recorded a declining transaction value, but the frequency of shopping actually increased, because more people are now buying for their daily needs.

"This condition certainly makes us have to pay more attention to monitoring changes that continue to occur in uncertain times like this. In addition, we also have to understand that our partners' production chains can also be disrupted due to global mobility restrictions," added the Founder & CEO. Jet Commerce Oliver Yang.

His party claimed to have predicted this change from the initial phase of the pandemic, and tried to adapt quickly to the changes that occurred. The pandemic has also affected the fulfillment center operations in Daan Mogot, which have had to operate since the beginning of the pandemic until now.

In addition to Jet Commerce, currently there are multiple services e-commerce enablers which also provides end-to-end services to its partners. Including aCommerce, Sirclo, 8commerce, and Anchanto.

Focus on 2021

Since it was first present in Indonesia in 2018 under the name J&T Alibaba, the Jet Commerce business has grown rapidly in several countries, in line with the rapid development of the industry E-commerce globally since the pandemic. From a total of more than 70 brand managed in 4 countries (China, Philippines, Thailand, Vietnam), in 2020 Jet Commerce recorded a 200% increase in transaction value in China compared to 2019, 700% in Thailand, 1500% in the Philippines, and 280% in Vietnam.

Meanwhile, the number of transactions in 2020 increased by 400% in China compared to 2019, 450% in Thailand, 1400% in the Philippines, and 350% in Vietnam.

Regarding the focus on 2021, Oliver also conveyed to DailySocial that all that will be done in 2021 is to follow the trend E-commerce increasing in Southeast Asia and China, to support the efficiency of partner operations brand. In addition, the company is also preparing the expansion to Malaysia.

The ongoing pandemic is considered to encourage penetration E-commerce increasingly widespread this year, as the report reveals Digital Market Outlook published by Statista, mentions that users E-commerce in Indonesia this year is predicted to grow 15% from a total of 138 million users in 2020, or reach 159 million users in 2021. Meanwhile, industry revenue is predicted to increase by 26% to reach $38 million, from $30 million in 2020.

When it comes to services cross-border which was part of last year's plan, his party admitted that they really wanted to help local entrepreneurs export their products abroad in order to expand their market reach. However, there is still much to be prepared before this service can operate optimally this year.

"2021 will be a challenging as well as exciting year for us, as we plan to optimize the efficiency of our business operations in various ways, through optimizing our IT systems, and integrating our entire network. We also plan to launch several new innovations this year," said Oliver. .