It is no secret that 12 December is the peak of Online Shopping Day which was initially launched by the Indonesian E-commerce Association. The free shipping program per day is valid until the end of October 2019. By freeing shipping costs, Paxel hopes that Indonesian SMEs can have more competitiveness.
“With Paxel helping on the logistics factor, Paxel hopes that our SMEs can focus more on improving the quality of products and services,” Djohari Zein, Executive Advisor of Paxel, said in a written statement.
Small and medium businesses have proven capable of driving economic growth over the past few years. From Kompas data, Indonesian MSMEs are capable to control around 99% of business activities in Indonesia. Interestingly is more than 98% still in the micro business status.
Data from the Ministry of Cooperatives, Small, and Medium Enterprises mentioned that MSMEs contributed greatly to the national GDP as much as 60 percent. Meanwhile, the results of research from Paxel Buy & Send Insights 2019 show that 88% of Indonesian SMEs send goods up to 20 shipments per day.
Then, Paxel’s promo can help SMEs in cutting their logistics costs by half. It would be beneficial for sure. Indonesian SMEs can take advantage of the free shipping per day promos by entering the promo code PAXELGRATIS5 and PAXELGRATIS6 in the Paxel application.
Nur Karlina, a seller of frozen food products from Bogor, D’Mamam, admitted that she was greatly helped by the free shipping delivery promos. “The type of goods we send is frozen food that must arrive immediately,” she said. And Paxel’s same-day delivery could be helpful.
Same-day delivery service has become Paxel’s flagship nowadays. Until now, the same day delivery service is the fastest logistics service product on the market. Paxel Buy & Send Insights survey results even prove that SMEs experienced an increase in shipment volume after using the same day delivery service.
Meanwhile, Paxel will further expand its reach. This startup utilizes the lockers that are stored at each point as a distribution system of goods to enable one-day delivery with a fairly far range, for example, from North Jakarta to Depok.
Paxel’s Co-Founder, Djohari Zein, said that sales growth through online made demand for one-day shipments increases, especially for food products. “So 50% of Paxel shipments come from the micro food industry,” he said. At present, Paxel will focus on expanding its reach in Java and Bali.
This year Paxel wants to have 100 points which will be focused on dense areas like Jakarta. Paxel’s CEO, Bryant Christanto said that currently, the company’s service demand reached 25% per month. He claimed that Paxel had served an average of 10,000 shipments per day.
As for network development, Paxel will only add lockers in certain places. For the two-row lockers, the investment cost is IDR 50 million. Then, each locker can distribute 800 items. “Goods (that are delivered through us) in and out of this locker,” Bryant said.
Bryant further explained that the Paxel distribution system uses a relay system. One courier only ships goods in areas that he understands. Meanwhile, if the item has to be sent farther than its range, he will make use of other lockers which will then be distributed by other couriers.