One of the world’s fastest growing consumer markets globally is Southeast Asia. ASEAN countries make up 9% of the world’s population (600 million), with a growing middle class of active online buyers. Growth-minded brands can market to these buyers on Shopee, Lazada, Tokopedia, Blibli, and other popular Ecommerce sites in the region. But the big challenge, especially for brands based outside Southeast Asia, is how to set up order fulfillment operations to ship B2C orders quickly and efficiently in the region.
Dimerco, with its Indonesia subsidiary, Uniair Cargo, was the first to establish a bonded logistics center in Indonesia, located in Bekasi outside of Jakarta. The facility is specifically for fulfillment of electronically traded goods. The model is known in Indonesia as PLB Ecommerce (Pusat Logistik Berikat).
At the PLB bonded warehouse, goods can be imported and stored tax and duty free until items are sold online and leave the facility. This provides a huge cash flow advantage for small and medium-sized brands that want to increase sales to Asian consumers through online marketplaces. Items stored at the PLB Ecommerce facility must be sold online.
There is no deminimus threshold value for imports. Goods valued at less than $1,500 USD are assigned a 7.5% duty. Goods valued at more than $1,500 USD are assigned a duty rate based on the product’s country of origin and specific HS code/s.
Advantage of the PLB for fulfillment services in Indonesia
In addition to enjoying delayed duty and tax payments, brands get the following benefits if they store goods in a PLB Ecommerce warehouse.
- All customs-related details are handled by the PLB, which can serve as either the Importer of Record (IOR) for foreign merchants or the Exporter of Record (EOR) for local merchants. Uniair Cargo is AEO-certified and has the knowledge and systems to speed the clearance process.
- Goods that are brought into the PLB Ecommerce warehouse but do not sell can be re-exported to another country or back to the origin country with no payment of duty or tax. If stored in a general warehouse, this re-exportation process can be quite complicated.
- Products can be stored up to three years.
The PLB Ecommerce warehouse model works for both importers and exporters
Both overseas merchants and local Indonesia-based merchants can use the PLB Ecommerce warehouse.
Overseas merchants would normally require an import license and a business license to bring in merchandise for sale. But the PLB model avoids this, with Dimerco/Uniair acting as the IOR with Indonesia Customs. This makes it fast and simple for brands to expand sales to the Southeast Asia market.
Local Indonesia-based merchants can also contract with a PLB warehouse for Ecommerce fulfillment services in Indonesia upon approval from the local customs authority. For goods sold to buyers outside Indonesia, the PLB can consolidate outbound orders from multiple merchants to reduce freight costs. The PLB can also assist local merchants by bringing in raw materials and exporting products when sold.
Dimerco and Lazada partnership
For Lazada, one of the top eCommerce marketplaces in Southeast Asia, Dimerco handles B2C fulfillment to customers in and around Jakarta from its PLB Ecommerce warehouse, processing up to 2,000 online orders per day. Dimerco handles customs clearance on inbound Lazada containers to get products into the warehouse and available for sale as quickly as possible.
Move fast to grow sales in Southeast Asia
Brands can take advantage of the PLB Ecommerce model in Indonesia to quickly establish Ecommerce fulfillment services in this important market. The Jakarta location provides a central and economical hub for distribution to customers throughout Southeast Asia, as well as Australia. Naturally, these local warehouse services integrate tightly with Dimerco’s ocean freight services, air freight services and trucking services for a one-source global logistics solution.
Dimerco’s WMS system is already integrated with popular ecommerce platforms in Southeast Asia to receive orders electronically. This avoids IT integration projects that can sometimes slow down the onboarding process. Dimerco systems are also integrated with Indonesia Customs for fast, easy electronic customs clearance.
Are you a growing brand that need Ecommerce fulfillment services in Indonesia to grow online sales in the region? Reach out today to talk to an Ecommerce fulfillment specialist.