More Than 60% of JNE’s Revenue Comes from E-Commerce

The premise stating that logistic companies are dependent to e-commerce business is getting more visible today, as JNE confirmed that more than 60% of their revenue derives from e-commerce industry. This year, they shoot for an even bigger star, as the team target to have 70% of their income coming from the industry.

JNE’s Chief Sales and Marketing Officer Agus Hartono Wijaya told IndoTelko, “The contribution of e-commerce to JNE’s total revenue may reach 60% to 70%. We are glad to be part of this ecosystem.”

E-commerce contributed around Rp 1,5 to 2 trillion in 2014. This year, JNE expect to gain even higher, up to 70% of their total target revenue which reach Rp 3.9 trillion.

At the moment, JNE has reportedly partnered with almost each and every e-commerce player. They're also trying to tie up with MatahariMall, the latest O2O e-commerce platform from Lippo Group.

Weakling

Although being dependent to e-commerce, JNE (and other players in the industry) must be aware that logistic is still unreliable that it hampers customers’ trust toward e-commerce players.

A little survey done by DailySocial around a month ago revealed that the delivery duration was the most problematic issue concerned by customers. Numerous e-commerce players have even established their own in-house delivery services, especially within Jabodetabek region, since they trust logistic vendors no more.

The establishment of distribution center, particularly in areas outside Java Island, and O2O becomes an oasis that serves the answer to this unfavorable situation, as it seeks to ensure the delivery process to be as reliable as possible. Well, logistic vendors indeed must improve their quality of services to survive the game.