The E-Commerce logistics industry in Indonesia is one of the growing markets in the country due to increasing demand for e-commerce. Fast growing of middle class population, high consumer confidence, changing consumer preferences, growing number of financing options, increase penetration of internet and smartphone has pushed demand for e-commerce leading surging demand for e-commerce logistics as well.
The industry is witnessing huge investments by e-commerce players in logistics to ensure time bound delivery. Jakarta, Surabaya, Sulawesi, Bandung, Kalimantan are they key hubs for demand and supply of e-commerce logistics. Emerging business opportunities in the market has led to entry of new players in the market. The COVID-19 pandemic has also pushed the demand in the market as need for social distancing has forced people to rely on online shopping
Indonesia being the mobile first economy with 56% of the population connected to the internet2 is contributing to the growth of e-commerce market leading to a surge in demand for logistics services.
Indonesia e-commerce industry has been witnessing large investment from companies such as Expedia, Alibaba, Tencent, JD.com and others, which has supported industry growth.
Challenges for E-Commerce Logistics Market in Indonesia
High Logistics Cost: Lack of quality infrastructure and poor logistics network has led to high logistics costs of Indonesia in ASEAN. The logistics costs estimates 25% -30% of GDP as compared to 5% in GDP. Indonesia has highest logistics costs among the ASEAN countries such as Singapore, Malaysia, Thailand and Vietnam.
Unstandardized Logistics Market: The logistics market in Indonesia lacks standardization; the distribution pattern in Indonesia varies in different regions. Lack of standardization hampers the penetration of technology in the market
Poor Infrastructure: Indonesia has poor road and rail network followed by moderate port and air transport quality. Indonesia being the hyper fragmented multimodal transport play faces the landscape hurdles leading to high costs of delivery and high delivery period.
Costly Reverse Logistics: Due to surge in e-commerce demand has led to high return rate in online retail. Inadequate infrastructure and tough geography pose a challenge for reverse logistics leading to complication and high logistics costs.
Competition Overview
The competition in the E-Commerce Logistics space in the Indonesia is moderately concentrated whereby major 4-5 companies hold majority of share in the market. The major e-commerce logistics companies include Lazada express, JNE, J&T, Sicepat, Ninja Express, Wahana Express, Lion Parcel, Tiki, First logistics and few others. E-Commerce market is also moderately fragmented as majority of market share is composed by top 5-6 players. Fleet size, clientele, no. of delivery centres, number of orders, value added services, price, delivery time are the key competing parameters for the e-commerce logistics providers.
Future Growth
Due to COVID-19 outbreak, there has been shift from offline sales to online sales, which is expected to ensure substantial growth in future as well.. The e-commerce logistics market in the country is expected to grow on the back of new technologies such as Automation, Blockchain and Internet of Things, which will be explored to increase efficiency, improve customer experience and enhance service quality. The share of Pharma e-commerce logistics is expected to increase in future. Indonesia E-Commerce Logistic market is expected to gain momentum with a fast-growing middle class population, high levels of consumer confidence and changing buying behavior of consumer. On the competition front, E-Commerce Logistics market is expected to consolidate in the future as majority of the e-commerce companies would be having their own logistics company.
Key Target Audience:
3PL Logistics Companies
Integrated Logistics Companies
E-Commerce Marketplace Platform
Retail Companies
Logistics/Supply Chain Industry Associations
Time Period Captured in the Report:
Outlook Period: 2019 to 2025
E-Commerce Logistics Companies Mentioned:
Lazada Express
JNE
Sicepat
Ninja Express
Lion Parcel
Wahana Express
Paxel
J&T Express
E-Commerce Marketplace Platform Mentioned
Tokopedia
Shopee
Lazada
Bukalapak
Blibli
Key Topics Covered in the Report
Indonesia E-Commerce Logistics Market (Overview and Genesis, Ecosystem of Indonesia E-Commerce & E-Commerce Logistics Market)
Market size of Indonesia E-Commerce Market (2019-2025)
E-Commerce Shipments per day (2019-2025)
Market segmentation by B2C & C2C E-Commerce
Market segmentation by sourcing- region
Market segmentation by delivery- region
Market segmentation by volumetric weight, Challenges in E-Commerce Logistics market)
Competitive Landscape
Cross Comparison of E-Commerce Logistics Companies
Cross-Comparison of E-Commerce Players
For More Information on the Research Report, Refer To Below Link:-
Indonesia E-Commerce Logistics Market
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Ankur Gupta, Head Marketing & Communications
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