The Untapped B2B Delivery Service Opportunity in Indonesia

17 Nov 2021

By Satrio Ardia

The Indonesian market for B2B delivery services is currently booming, with an estimated value of USD 1 billion in 2016.
 
The impact on customers is significantly shifted towards the company's goals. Customers are more willing to buy more new products or services, or will renew an existing order, whereas employees are more productive and satisfied with their jobs.
 
There are various ways for B2B companies to succeed in Indonesia or globally. The most important thing for them to do is understand their target market and be able to adapt quickly when they need to change their marketing strategy.
 
The market size of delivery services is growing at a rapid rate. People are becoming more and more reliant on these services to get their everyday requirements delivered to them. In fact, it is estimated that the total market size of package delivery services alone will reach $262,000 million by 2026.
 
In this section, we'll take a look at the various delivery services currently available and what advantages they offer from these courier companies.
 
Here we provide a list of the best shipping services for now:
 
1. J&T Express
 
Advantages offered:
 
- Have a tracker (tracking) goods on time
 
- Directly reach all parts of Indonesia without intermediaries
 
- Collaborating with relationships in building infrastructure such as Garuda Indonesia Cargo, Asperindo, Shopee, Indonesia E-commerce Association (IDEA).
 
- Non-stop service and no holidays
 
2. JNE
 
Advantages offered:
 
- Have a responsive and fast customer service in handling various consumer complaints.
 
- Longer Operating Hours, has many branches that can be found easily, even in the hours after going home from work.
 
- Has a money back guarantee (guarantee), if at any time the shipment of goods exceeds the specified delivery limit (specifically for certain types of packages).
 
- Having a good tracking system, so you can easily track the whereabouts and delivery process of the shipment.
 
3. Pos Indonesia
 
Advantages offered:
 
- Fares are more affordable and can compete well with other companies.
 
- Has the widest delivery range, even reaching remote and inaccessible areas (100 percent of cities/districts, 100 percent of sub-districts and 42 percent of sub-districts/villages as well as 940 remote transmigration locations in Indonesia).
 
- Have online services and can be accessed easily.
 
- By joining the United Postal World (Universal Postal Union), POS Indonesia has access to the cheapest and fastest delivery services for shipping goods abroad.
 
The forces driving this industry include the following:
 
1. The nature of the industry that has been growing from a low-cost manufacturing to a high-tech industry with abundant opportunities for innovation

2. Globalization which provides new markets and customers for domestic industries

3. The trade liberalization which helps to open up overseas markets for domestic industries.
 
Competition will evolve in the future because of the following:
 
1. The changing consumer demand, because consumers are becoming more knowledgeable about quality and safety, they will require better products this is also due to the internet, customers can get product information through social media or e-commerce websites

2. Global competition will increase, because changes in trade policies will make it easier for multinational companies to enter our domestic market.
 

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