Lazada and JNE System Integration Provides "Cashless" Feature

Lazada teams up with JNE to present cashless facility to all sellers for the faster and efficient delivery process. It integrates JNE's internal system with Lazada Seller Centre, both in and mobile.

The cashless facility allows Lazada sellers to send packages without having to make cash payments at JNE outlet. Sellers are also not required to submit delivery details manually.

There will be an automation process through Lazada Seller Centre to help sellers more flexible in managing cash flow, therefore, they can do other important things, such as production.

"Through the latest facility, we hope to help sellers improve their services for consumers and develop online business easily," Alessandro Piscini, Lazada Indonesia's CEO, explained on Tue (8/14).

JNE's President Director, Mohamad Feriadi, said, with 6,800 JNE networks in all over Indonesia, the cashless facility can benefit Lazada sellers, by offering a different experience.

"Currently, it's limited for Jakarta's sellers, there are 500 areas in total ready to be cashless. It'll expand to Jabodetabek and other cities, including Medan, Makassar, Surabaya, and Bali," he added.

Since 2010, with the rise of e-commerce in Indonesia, the business growth of JNE's express courier has reached 30-40% per year. In past months, the total packages sent has reached 19 million per month, it goes for over 20 million packages in Ramadhan and Eid Mubarak moments.

"JNE grows bigger due to the presence of e-commerce and the built ecosystem. In terms of potential, it's a great one. In 2017, it 's estimated to reach US$130 million compared to the previous year of US$22,6 million. In 2020, it's said to grow 130%, it requires a business pattern that will be the great help for SME's sellers for the faster process."

Lazada started the initiation for 50% of the total sellers registered on the platform are using JNE as their logistics. There's a possibility of Lazada continuing the innovation to other logistics partners.

The form of cashless facility

Further detailed of the cashless facility, please note that Lazada sellers used to print the invoice and shipping labels manually from Lazada Seller Center. Furthermore, they have to take all packages to the JNE outlet to print the receipt and pay in cash.

The shipping fee will be reimbursed by sellers to Lazada. Lazada is still using delivery allowance strategy for consumer services that all costs will be fully paid to JNE.

The seller should return to Lazada Seller Center to enter the receipt number manually and change the 'ready' status into 'sent' for the final notification to customers. This process obviously takes time for the seller to go back and forth, it certainly costs more.

However, with the cashless facility, sellers only have to go to Lazada Seller Center to print the invoice, delivery label, and changing status to 'sent'. Later, they only need to go to the JNE outlet for the delivery process. JNE officers simply just scan the barcode or submit the receipt number to enter JNE system.

"Sellers can just prepare printer, black ink, internet connection, and A4 paper. There are no specific requirements for sellers to use this facility. We want to train them the professional sales, there are many channels they can use to ask," Mercy Suryasin, Lazada Indonesia's VP Seller Operation, added.

Agusnur Widodo, JNE's Head of Seller Operation, added the JNE Reguler (before JNE Cashless) facility usually takes around 2-4 minutes, it's now only 10-15 seconds. By all means, the shorter time can make JNE productivity increase and efficient.

"If sellers have to go to the JNE outlet, we're preparing JNE agents who can approach the sellers. It's still a trial, if this is successful, we'll roll it out to our 56 operational cities," Widodo finished.

– Original article is in Indonesian, translated by Kristin Siagian