Tokopedia Introduces TokoBranch "Fulfillment" Service

Tokopedia introduced the TokoCabang fulfillment service to make it easier for merchants to reach consumers without having to open their own warehouse. This service also demonstrates the company's commitment to becoming an IaaS platform.

In previous interview with DailySocial, Head of Fulfillment Tokopedia Erwin Dwi Saputra explained that this smart warehouse (TokoCabang) can be used by sellers to store product inventory in areas where the demand level tends to be high.

Buyers in these areas can ultimately get their needs more efficiently due to lower shipping costs and shorter delivery times.

"Innovations like this are expected to bring real solutions to the online trading ecosystem, considering that Indonesia is the largest archipelagic country in Indonesia," said Erwin.

The company has started presenting these smart warehouses in several cities in Indonesia as a first step and the initiative will be officially announced in the near future.

"We believe the above innovations will be the next leap, which can accelerate the achievement of our mission for digital economic equality in Indonesia."

Branch Store business model

Erwin did not explain where the location is Branch Store. According to official information on the website, this service is run by a partner appointed by the company, namely PT Bintang Digital Internasional.

This partner will be responsible for the whole process fulfillment, from order management, retaliation chat and product discussion, warehousing, packaging, to product delivery through logistics agents last mile to the buyer.

The branch store cannot be used merchant to store products that are prohibited from being traded by Tokopedia, fresh food and beverages, expired products, dimensions exceeding 40cm x 28cm x 28cm, and aerosol products.

Merchants who can take advantage of this Branch Store have a minimum reputation of Gold 1 or Official Store. Some of the merchant names that have joined are Audio Technica, EMPO, Jabra, Pioneer, and Ria Miranda.

When merchant have been selected, they can place product stock on location fulfillment which is aimed. There are two components of fees charged merchant if you want to take advantage of TokoBranch, namely: handling fees of IDR 3.000 per item for products sold served and storage fees IDR 2.000 per item per month for products stored in the warehouse for more than 60 days.

It is claimed that these costs are more efficient than merchants having to open their own branches or warehouses, taking into account labor costs, packaging costs, and warehouse expenses.