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The expansion is also aimed to improve COD services, which predicted to continue increasing

Regional full-service e-commerce solutions provider aCommerce today announced that it has expanded the business to Bandung and Surabaya by opening new hubs in Indonesia’s major cities after Jakarta.

Sizing approximately 150 square meters each, the new hubs are located in Ujung Berung (Bandung) and Sidoarjo (Surabaya). The hubs will serve as cross docking or in-transit distribution hub, and have the capacity to be expanded up to 1,500 square meters. It is designated to be the start of future local Fulfillment Centers that is expected to cater to the need of faster and more efficient e-commerce transactions.

Expansion to Bandung and Surabaya is deemed a strategic move to support the company’s business growth agenda as well as to improve its logistics services for brands and e-commerce players.

aCommerce previously has fulfillment centers in Halim (East Jakarta) and Pondok Ungu (Bekasi).

The company also cited plans to expand to Medan, Makassar, Yogyakarta, Semarang, Tangerang, Manado, Denpasar, Lampung and Palembang, starting 2016 Q2.

Also Read: Going online? Beware of cannibalism, says aCommerce’s Hadi Kuncoro

One particular reason why aCommerce chose to expand to the two cities is the popularity of cash-on-delivery (COD) services, and the company’s aim to improve it.

“COD will remain the main preferable payment method for Indonesians in the next few years, not just because the credit card penetration in Indonesia is still very low, but COD also helps eliminate Indonesian consumers’ trust issues in paying online,” said aCommerce CEO Hadi Kuncoro in an official statement.

“Moreover, another reason why COD is still growing and remain widely used is because e-commerce’s target market will shift to C-class customers,” he added.

He also confirmed that the transactions using COD will continue to increase in the next few years. In Southeast Asia in general, COD is predicted to reach 74 per cent of total transactions from last year’s number of 53 per cent.

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Disclaimer: aCommerce is an Ardent portfolio company. Ardent Capital is an investor in Optimatic Pte Ltd, the parent company of e27.

Image Credit: aCommerce

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