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aCommerce Indonesia
Accelerating your growth in e-commerce
Intro | Nov 2014
Singapore | Thailand | Indonesia | Philippines 1
Contents
1
Opportunity in Indonesia
About us
Products and services
Proposed Fee
Singapore | Thailand | Indonesia | Philippines 2
In the next 5 years, online shop in Indonesia will grow at least
10x from 3% to 30%
2
SOURCE: McKinsey Consumer Insights Indonesia 2013
1 Question asked to the 29% of the population that cited using internet via PC/laptop in past 12 mos.
Singapore | Thailand | Indonesia | Philippines 3
Other online research shows a more aggressive number: 46%
intended to buy online in the next 12 months
3
77% of sellers say that a reason
for selling online is that there are lots
of people buying online
Indonesian online shoppers…
46%
of online Indonesians who have never
shopped online expect to buy online
within the next 12 months
41%
37%
20%
14%
14%
14%
14%
use search engines to research
use social to research
retailer/store website
news / magazine websites
online blogs, forums or message boards
emails and e-newsletters
product comparison websites
SOURCE: TNS Online Shopper Study – Indonesia – February 2013 Base: Online shoppers across all categories (Recent online shoppers n = 511)
Singapore | Thailand | Indonesia | Philippines
Source:: UBS Research, Nielsen, Comscore, PWC HK, ATKearny, researchandmarkets.com, Dailysocial, smu.edu.sg, E-commerce.org.sg
Unit ID SG PH TH China US
Population M 248 5.2 95 67.5 1350 315
# Online M 75 3.9 33 32 513 246
% Online % 30% 74% 34% 46% 38% 79%
Retail Sales USD B 134 31 34 139 2,380 4,700
B2C E-commerce Market USD B 0.9 1.1 0.4 1.1 190 343
E-commerce % of Retail % 0.7% 3.5% 1.1% 0.6% 8% 9%
10X
IDR 10
Trillion
IDR 100
Trillion
Indonesian Market in
4 – 5 years
4
In the next 5 years, online shop transactions in Indonesia is
expected to grow 5-10x
Singapore | Thailand | Indonesia | Philippines 5
For one of top online shop, the growth has already been
driven by outside Jakarta customers
5
Customers by location (%)
Customers by gender (%) Customers by age group (%)
SOURCE: Internal Data and Analysis of Top Online Retailers Fashion category in Indonesia 2013
Male 43
Female57
16-20
21%
11%
21-25
21%
>3631-3526-30
19%
27%
2%
<15
Jakarta % shrinks from
41% to 22% in 6 months
Most sales now already
come from outside BIG
cities
Sumatra Kalimantan Others
370% 300%
Jakarta Java excl. Jakarta
70+% 370%
Singapore | Thailand | Indonesia | Philippines 6
Contents
6
Opportunity in Indonesia
About us
Products and services
Proposed Fee
Singapore | Thailand | Indonesia | Philippines 7
7
Our Vision
Powering Ecommerce in Southeast Asia
aCommerce means commerce anytime,
anywhere, anything
Our Mission
Build Ecommerce technologies and
services that help companies build brand
value, acquire customers, drive sales, and
scale their business
Our Vision and Mission
Singapore | Thailand | Indonesia | Philippines 8
In Indonesia, 50+ retailers/marketplaces and brands are
working with us
8
Retailers / Marketplaces Brands
Singapore | Thailand | Indonesia | Philippines 9
We have presence across multiple SEA countries and are
supporting Clients enter / grow regionally
9
Thailand
Singapore Indonesia
Philippines
• 2x 1500 sqm expandable to 20,000
sqm
• Accessible from Jakarta: 5 mins from
inner toll road, outer ring toll road, 1
near airport, another near harbor
• 90+ staffs
• 3600 sqm
• 10 mins from downtown
Bangkok
• 130+ staffs
• 200 sqm
• 15+ staffs
• 500 sqm
• 10+ staffs
Malaysia, Vietnam
Coming soon
11.7M USD in funding from NTT Docomo, Sumitomo Ventures,
CyberAgent Ventures, Inspire Ventures, Sinar Mas,
AsiaPacificDigital, Ideosource, and Ardent Capital
Singapore | Thailand | Indonesia | Philippines 10
Indonesia: in 8 months, we grew to a full scale operations with
2 Fulfillment Centers and 2 Distribution Centers
10
1,500 expandable to 5,000 1,500 expandable to 20,000 200,000 items
2 FCs:
15,000 inbound
FC1:
2,000 to 5,000 outbound
FC2:
1,000 to 3,000 outbound
2 DCs:
3,000 to 6,000 outbound
Own delivery:
40 riders
Own delivery:
4 vans
Singapore | Thailand | Indonesia | Philippines 11
Our key management team across countries
11
Paul Srivorakul
Group CEO
Experience:
▪ CEO & Co-Founder,
Ensogo Group
(acquired by
LivingSocial), Admax,
DMS Group,
NewMedia
Peter Kopitz
Group COO
Experience:
▪ Co-Founder & MD,
Zalora, Rocket Internet
▪ VP, Head of Execution,
ACL Bank
Piers Bennett
Group CFO
Experience:
▪ CFO, Ensogo (acquired
by LivingSocial), DMS
Group, ValuE-
commerce
John Srivorakul
Group CTO
Experience:
▪ CTO & Co-Founder,
Ensogo (acquired by
LivingSocial), Admax,
NewMedia
Sheji Ho
Group CMO
Experience:
▪ Sr. Product Manager,
Moda Operandi
▪ Head of Customer
Acq., LivingSocial, Gilt
Groupe
Tom Srivorakul
CEO (Thailand)
Experience:
▪ Co-Founder & MD,
Ensogo (acquired by
LivingSocial), DMS
Group, NewMedia
Hadi Wenas
Co-CEO (Indonesia)
Experience:
▪ Co-Founder Zalora
Indonesia, Rocket
Internet
▪ Engagement Manager,
McKinsey & Co
Adrian Suherman
Co-CEO (Indonesia)
Experience:
▪ VP of Digital,
Telkomsel
▪ CEO (Indonesia),
LivingSocial/DealKeren
Ray Alimurung
CEO (Philippines)
Experience:
▪ VP of Business Dev.,
Lazada, Rocket Int.
▪ Sr. Product Manager,
Amazon.com (USA)
Sabina Chang
CEO (Singapore)
Experience:
▪ Category Manager &
Head Merchandiser,
Apple, Amazon,
Walmart.com
Singapore | Thailand | Indonesia | Philippines 12
Contents
12
Opportunity in Indonesia
About us
Products and services
Proposed Fee
Singapore | Thailand | Indonesia | Philippines 13
Our products and services
13
Cross Border ‘International’ Ecommerce
From customs clearance to local FDA approval and cross-border logistics, we
can scale your Ecommerce business across S.E. Asia and rest of world
E-Fulfillment & Delivery
Our specialized E-fulfillment centers can manage all your local Ecommerce
logistics needs from Managed Drop-Ship, Flash Logistics and temp
controlled storage to custom packaging, next day delivery, and COD
Additional services include: Production, Call Center.
Multi-Channel Development
We design, develop, and operate Brand/Retailer storefront in marketplace(s)
connected to our centralized inventory/fulfillment platform
Performance Marketing
We conduct funnel analysis and optimize your e-commerce website; manage
media buying in Facebook, Google, local Ad networks, develop ad banner &
copy, monitor regularly and optimize for conversion (transaction, revenue)
Singapore | Thailand | Indonesia | PhilippinesSingapore | Thailand | Indonesia | Philippines
14
Brand Site
(Maybelline.co.th)
Marketplaces
(Qoo10.sg Official Loreal
Store and LINE Flash Sales)
Popshop Storefront
(Maybelline FB page, Vichy Site)
Technology development for multi devices multi channels
Singapore | Thailand | Indonesia | PhilippinesSingapore | Thailand | Indonesia | Philippines
Example of SBC Website: lolalo.la
15
Singapore | Thailand | Indonesia | PhilippinesSingapore | Thailand | Indonesia | Philippines
Example of Magento Website: erafone.com (coming soon)
16
Singapore | Thailand | Indonesia | Philippines 17
Channel management and marketplaces
17
We manage your brand across multiple marketplaces and online retailers
Brand
Gives inventory to
aCommerce to manage,
fulfill, and delivery on
their behalf
$
Brand
Receive sales and
marketing data,
sometimes direct
customer emails
Production
Customer Service
Delivery
Fulfillment
Marketplace
provides:
aCommerce
provides:
Marketing
Payments
$
Sales
Customers
Singapore | Thailand | Indonesia | Philippines 18
Channel management process
18
1) Develop channel
management strategy,
sales & marketing plan,
set goals & KPIs
2) Design, develop, and
integrate store to fit
channel requirements
and brand guidelines
3) Merchandising and
supply chain planning
4) Train call center team
to learn products,
T&Cs, inbound-
outbound calls
5) Manage inventory,
fulfill orders (quality
control, storage,
pick, pack, label,
ship)
6) Customer delivery
and payment
collection (Cash or
Credit card)
7) Maintain webstore,
manage promotions, and
product content updates.
Daily tracking and
reconcile with supply
chain and accounting
Singapore | Thailand | Indonesia | Philippines 19
Example of Brand stores in marketplaces
19
Loreal Official E-Store in
Qoo10.sg
Tefal Brand Store in
Tarad.com (Rakuten TH)
OPI Brand Store in
Elevenia.co.id
Singapore | Thailand | Indonesia | PhilippinesSingapore | Thailand | Indonesia | Philippines
Launches new products on LINE FLASH SALE
LINE Flash
Sale
Sold out in
5min
85% new
customers
20
Singapore | Thailand | Indonesia | Philippines 21
Our products and services
21
Cross Border ‘International’ Ecommerce
From customs clearance to local FDA approval and cross-border logistics, we
can scale your Ecommerce business across S.E. Asia and rest of world
E-Fulfillment & Delivery
Our specialized E-fulfillment centers can manage all your local Ecommerce
logistics needs from Managed Drop-Ship, Flash Logistics and temp
controlled storage to custom packaging, next day delivery, and COD
Additional services include: Production, Call Center.
Multi-Channel Development
We design, develop, and operate Brand/Retailer storefront in marketplace(s)
connected to our centralized inventory/fulfillment platform
Performance Marketing
We conduct funnel analysis and optimize your e-commerce website; manage
media buying in Facebook, Google, local Ad networks, develop ad banner &
copy, monitor regularly and optimize for conversion (transaction, revenue)
Singapore | Thailand | Indonesia | Philippines 22
Our marketing process
22
After we integrate operations and fulfillment, we focus on marketing
and sales by acquiring members, converting them to buyers, and
retaining and growing loyal customers.
Maintain & Enhance Ecommerce Platform
Acquire Convert Retain Grow
Measure & Analyze Data
Singapore | Thailand | Indonesia | Philippines 23
Building loyal customers and repeat business
23
Converting online traffic to buyers is critical for any Ecommerce site. We test
and optimize the best marketing-to-sales channels for driving customer
loyalty.
Dormant
Buyers
Singapore | Thailand | Indonesia | Philippines 24
24
Strategic partnership with Kapan Lagi
Network, the biggest content portal group
with targeted online visitors
Local Affiliate Network
Thorough funnel analysis from home
catalogueproductshopcartcheckou
tpaymentdelivery to maximize ROI
Design & CR Optimization
PopShop and LINE m-commerce are
examples of our innovation products to
push more conversions
Other proprietary channels
Paid Marketing requires us to manage the
tech, media planning, and buying to
optimize CPA (cost-per-acquisition)
Paid Marketing
Organic marketing and CRM go hand-in-
hand in driving existing customers to
repurchase and acquire other customers
Organic Marketing & CRM
SEO optimized content creation to boost
site ranks and drive more free traffics to
minimize Customer Acquisition Cost
SEO Optimization
Different marketing services
Singapore | Thailand | Indonesia | Philippines 25
25
Happy
Customers
High Quality
Traffics
Converting
Website
Excellent
Customer
Experience
Key questions / analyses
• How likely are customers to refer YOU to their friends and family?
• By location, By age-groups, By payment type, By category, etc
• How is your Repeat Customers %? Repeat frequency?
• What are the current major pain points?
• What are the overall actual Onsite Conversion Rate?
• By channel, by location, by device, etc.
• What's the specific conversion in each step leading to transaction?
(funnel analysis)
• By channel, by location, etc.
• How user browse through your website? (page flow analysis)
• What are the Conversion Rate, Average Order Value? Average Items per
Order?
• By new customers vs existing customers?
• By non-paid vs paid channels?
• By different channels?
Conversion optimization framework
Singapore | Thailand | Indonesia | Philippines 26
26
Converting website: Funnel analysis to increase
transactions from current traffics
Singapore | Thailand | Indonesia | Philippines 27
27
Example of mouse flow measurement
Three things we measure:
▪ Every event action and banner on
key pages
▪ Detailed traffic sources to key
landing pages via UTM
▪ Mouse flow on key pages
(temporary)
Example of detailed UTM link:
▪ http://www.zalora.co.id/Drop-Waist-T-Shirt-Dress-
134208.html?wt_sm=id.Social%20Media%20PR.Fa
cebook.P04-09-
2000.09Apr_2000_f_sales_apparel_banner_EZRA
Dress.09Apr_2000_f_sales_apparel_banner_EZRA
Dress&utm_medium=Social%20Media%20PR&utm
_source=Facebook&utm_campaign=P04-09-
2000&utm_content=09Apr_2000_f_sales_apparel
_banner_EZRADress
▪ The link contain detailed info of:
channel, date uploaded, product
category, gender, brand, campaign,
banner A/B testing code
Conversion measurement: You can't optimize what you
can't measure
Singapore | Thailand | Indonesia | Philippines 28
28
Illustration
Cost Per Order
(CPO)
Revenue
Revenue / Cost
ratio (ROI)
Customer
Acquisition Cost
Customer
Lifetime Value
Get as many
transactions with
lowest cost
Get as many revenue
with lowest cost
Get as many new
customers with lowest
cost
Get as many new
customers with high
value
Optimizing for High Quality traffics start with identifying
specific conversion goals
Singapore | Thailand | Indonesia | Philippines 29
• Not only we increased the ad
visits but we also increased the ad
transactions
• We also indirectly increased the
non-ad visits and transactions
(spill-over effect)
• CIR is Cost Income Ratio (the reverse of ROI)
• We optimized CIR from 1.33 to 0.50 in just 8
weeks
• CIR of 0.50 means for every dollar revenue you
get, you spent on 50 cents on marketing
Example of actual client reports that we help manage
and optimize Online Marketing
Singapore | Thailand | Indonesia | Philippines 30
Our products and services
30
Cross Border ‘International’ Ecommerce
From customs clearance to local FDA approval and cross-border logistics, we
can scale your Ecommerce business across S.E. Asia and rest of world
E-Fulfillment & Delivery
Our specialized E-fulfillment centers can manage all your local Ecommerce
logistics needs from Managed Drop-Ship, Flash Logistics and temp
controlled storage to custom packaging, next day delivery, and COD
Additional services include: Production, Call Center.
Multi-Channel Development
We design, develop, and operate Brand/Retailer storefront in marketplace(s)
connected to our centralized inventory/fulfillment platform
Performance Marketing
We conduct funnel analysis and optimize your e-commerce website; manage
media buying in Facebook, Google, local Ad networks, develop ad banner &
copy, monitor regularly and optimize for conversion (transaction, revenue)
Singapore | Thailand | Indonesia | Philippines 31
E-Fulfillment process
31
After site development, we setup: payment systems, accounting
processes, call center training, ERP and WMS, then transfer your
inventory to our fulfillment center for fast shipping and C.O.D
Acommerce Management Platform (AMP)
Call Center Reps
& Software
Payment
Gateway
Accounting
Process
Fulfillment
(Pick & Pack)
Dispatch &
Route Plan
Delivery &
COD
Order Management System
(OMS)
Warehouse Management
System (WMS)
Transportation Management
System (TMS)
Singapore | Thailand | Indonesia | Philippines 32
aCommerce Management Platform (AMP) & Tech Stack
32
AMP Dashboard
Partner
Profile
Fulfillment
Reports
Inventory
Reports
Sales
Reports
B.I.
Reports
Billing
Reports
Shipping
Reports
Data Management
Reporting
Dashboard
&
Business
Intelligence
Data Management
System
Marketing Systems
Google Adwords Google Analytics Facebook Adroll Campaign Monitor
Customer Service
Voxtron Phone Support Live Chat Desk.com (Ticketing) Phone Orders
Warehouse Management System (WMS)
NetSuite
Dispatching System
aCommerce Developed
Delivery System
Delivery Manager Route Planner Mobile Delivery App
Warehouse
Tools
Dispatching
Tools
Delivery
Tools
Operations Tools
Finance & Payment Systems
Netsuite Payment Gateways Banking Platforms
E-commerce Site (Magento) mCommerce Site (Magento) PopShop Platform (Magento)
Customers (Brands, Retailers, & Publishers)
Marketing
Reports
3rd Party Platforms
we custom build on
or API
Proprietary systems
we’ve built in-house
Tech Partners:
Singapore | Thailand | Indonesia | Philippines 33
33
Goods to be sold
will be inbounded
before LIVE
Goods with
complete
documentation
and proper
planning will be
inbounded within
24hrs
Goods to be
stored in
aCommerce
Fulfillment Center
while LIVE
New inbounded
products will go
through:
 Photoshoot
 Digital editing
 Content creation
Orders to be
processed (picked
and packed) within
24hrs
Packed orders will be shipped
same day & delivered within
promised delivery date:
 Jakarta: 1-2 days
 Others: 3-6 days
COD payment will be collected at
delivery point and transferred once
a month
Transactions
happened in:
 WebStore
 Phone Order
Call Center
 Complaints
 Post-service
 Upselling
Production
Inbound Storage OutboundTransaction
DeliveryE-Fulfillment
Best-in-class process to support you to deliver excellent
customer experience
Singapore | Thailand | Indonesia | Philippines 34
Detailed activities in each fulfillment process
34
DetailsProcess Photos from 24/7 CCTV
INBOUND
Unload, Unpack, Receive,
Visual QC, Location Assignment,
Put-Away, Goods-Received Report
Add-on: Advanced QC
OUTBOUND
Generate Picking List, Pick Items,
Standard Packaging,
Generate Invoice,
Dispatch to Delivery Team,
Manage Delivery Team,
Provide Tracking
Add on: Packaging production, Special
care handling, etc.
STORAGE
Store, 24/7 Security (CCTV),
Stock Record,
Return Excess Item (if necessary)
Add-on: Additional stock counting
Singapore | Thailand | Indonesia | Philippines 35
aCommerce Managed Drop-Ship allows multi-brand
retailers and marketplaces to offer a better customer
experience
35
Better experience and lower fulfillment costs for merchants and customers
Customer buys 3
products from 3
different
merchants on a
multi-brand site
or marketplace
aCommerce picks
up “unpacked”
items from 3
merchants
aCommerce consolidates the
individual items and assembles
the order at the fulfillment
center, all processed and fulfilled
same day
Customer receives
the order in one
branded package
next day via our
express delivery
Singapore | Thailand | Indonesia | Philippines 36
36
Pick-up across Greater Jakarta and nationwide delivery
▪ Pick-up Management provide package pick-up services in Greater Jakarta (Jabodetabek)
from 2 Distribution Centers
We plan to expand to next Top 5 cities in the next 6 months (Bandung, Surabaya, Medan,
Semarang, Denpasar) and other big cities
▪ Shipping Management provide Delivery services to all Indonesia
– Greater Jakarta deliveries: managing own riders with advanced Transportation
Management System (TMS) optimized for customer experience and Value Added Services
(e.g., COD, D/CCOD, QRCOD)
– Outside Greater Jakarta deliveries: managing and curating multiple 3PL partners,
optimized based on their quality, capacity, and Value Added Services provided (e.g., COD)
Singapore | Thailand | Indonesia | Philippines 37
37
Real Time Status
Technology investment sets aCommerce apart from other
3PLs (1/3)
▪ All our couriers are equipped with smartphones to allow them to send real-time status
of success or failed delivery
Singapore | Thailand | Indonesia | Philippines 38
38
Real Time Status
Technology investment sets aCommerce apart from other
3PLs (2/3)
▪ The same application allows couriers to search for direction and courier manager to
monitor rider performance and provide support if necessary
▪ Technology roadmap includes allow user to get access to where the courier is and
estimated of time of delivery based on LIVE location
Singapore | Thailand | Indonesia | Philippines 39
Technology investment sets aCommerce apart from other
3PLs (3/3)
▪ The same application
allows couriers to get
digital signature of
recipient and photo
proof(s) of success or
failed delivery
▪ All the information will
then be kept as a
digital Proof Of
Delivery
39
Real Time Status
Singapore | Thailand | Indonesia | Philippines 40
Cash On Delivery is available in Greater Jakarta and other
Top 30 cities in Indonesia
40
Cash On Delivery
Jakarta Pusat, Jakarta Utara, Jakarta Timur, Jakarta Selatan, Jakarta Barat, Kota Bandung, Kota Bogor, Kota Bekasi, Kota Depok, Kota Cimahi, Kabupaten
Gresik, Kabupaten Sidoarjo, Kota Surabaya, Kota Malang, Kota Madiun, Kota Kediri, Kota Denpasar, Kota Tangerang, Kota Tangerang Selatan, Kota
Yogyakarta, Kota Jambi, Kota Surakarta, Kota Semarang, Kota Banjarmasin, Kota Palangka Raya, Kota Samarinda, Kota Balikpapan, Kota Batam, Kota Bandar
Lampung, Kota Banda Aceh, Kota Pekanbaru, Kota Makassar, Kota Manado, Kota Padangpanjang, Kota Padang, Kota Palembang, Kota Medan
▪ Cash On Delivery (COD) is critical to unleash online shopping in Indonesia
▪ Together with delivery couriers, aCommerce can provide COD service in Greater Jakarta and Other Top 30 cities
across Indonesia with maximum value per transaction of IDR 2mio
▪ In-progress to add more COD cities in East Indonesia
Singapore | Thailand | Indonesia | Philippines 41
Debit (Mandiri, BCA) and Credit Card (Visa Mastercard)
On Delivery is only available in Jakarta for now
41
Debit / Credit Card on Delivery
▪ Riders carry two mobile EDC machines from Top 2 banks with largest market shares
▪ Both can accept ALL credit cards
▪ Each can accept Debit Cards from Mandiri and BCA
Singapore | Thailand | Indonesia | Philippines 42
(coming soon) QR Code payment by FlashIZ
42
QR Code payment
1. ENTER 4 DIGITS PIN
CODE
2. ENTER AMOUNT 3. CONFIRM TO
GENERATE QR CODE
4. CUSTOMER SCANS THE
QR CODE
5. INSTANT
CONFIRMATION for BOTH
▪ Courier: Generate QR Code if user select COD payment by QR Code
▪ Customer: Scan the QR Code provided by Courier
Singapore | Thailand | Indonesia | Philippines 43
Example of small thing we did for e-commerce customers
43
Failed Delivery Management
▪ 1st attempt delivery is non-scheduled
Failed 1st attempt will prompt rider to leave failed
delivery notification slip so they can arrange a
scheduled delivery
▪ 2nd attempt delivery is scheduled
We give customers 24hr to call for scheduled
delivery
If no call, we call customers to schedule 2nd
attempt delivery
▪ There will be extra charge for extra attempts
beyond 2nd attempt
Singapore | Thailand | Indonesia | Philippines 44
Group buying model will be very similar to our Flash
Logistic for flash sales and daily deals
44
Flash fulfillment is important for specific ecommerce models (e.g. Flash Sales) that requires
processing high volume of orders within a short turnaround time.
1) Focus on selling one
product at a good price
with thousands in-
stock
2) Our Customer service
learns the product and
terms and conditions
3) Pick up the product
from your warehouse
and delivery to our
fulfillment center
4) Prepack the 1000’s of
single orders and
prepare for ‘mass’
shipping
5) Packages are insured
and carefully
delivered next day to
customer
6) Confirm customer
pick-up, process
payment (Cash or
Credit card)
7) Accounting pays out
in 30 days due to
potential returns and
refunds
Singapore | Thailand | Indonesia | Philippines 45
Our products and services
45
Cross Border ‘International’ Ecommerce
From customs clearance to local FDA approval and cross-border logistics, we
can scale your Ecommerce business across S.E. Asia and rest of world
E-Fulfillment & Delivery
Our specialized E-fulfillment centers can manage all your local Ecommerce
logistics needs from Managed Drop-Ship, Flash Logistics and temp
controlled storage to custom packaging, next day delivery, and COD
Additional services include: Production, Call Center.
Multi-Channel Development
We design, develop, and operate Brand/Retailer storefront in marketplace(s)
connected to our centralized inventory/fulfillment platform
Performance Marketing
We conduct funnel analysis and optimize your e-commerce website; manage
media buying in Facebook, Google, local Ad networks, develop ad banner &
copy, monitor regularly and optimize for conversion (transaction, revenue)
Singapore | Thailand | Indonesia | Philippines 46
S.E. Asia Market Entry
Cross border Ecommerce
46
SEA
SEA
Cross Border Expansion
▪ Enter SEA with a local partner
that can help you expand across
the region with economies of
scale
▪ Leverage the upcoming “free
trade” ASEAN Economic
Community (AEC 2015) policy to
expand your business across the
region
▪ Build and own direct consumer
relationships, collect data, and
control the customer experience
Singapore | Thailand | Indonesia | Philippines 47
Cross border fulfillment and services
47
Customs clearance and FDA approvals by market (i.e.
Beauty & Food) May take 4-12 weeks depending on
country
Provide agent or merchant of record agreements to
expedite local distribution and sales
Provide warehousing (bonded optional), fulfillment, and
delivery in local markets
Drop ship from one market to the rest of SEA, we handle
return processing, customer service, and payment
collection
Singapore | Thailand | Indonesia | Philippines 48
International Shipping Method: Duty paid or Unpaid
48
You should provide consumers with a DUTY PAID solution that can speed up transit
time in the case of high-value orders. This provides the ultimate customer experience
as consumers do not like getting unexpected invoices.
International
customer
order
International
customer
order
Shipping
costs, Duty &
VAT are
calculated
Only
Shipping cost
calculated
Carrier issues
customer import
duty invoice
Carrier settles
import Duty in
local country
Order is
returned to
merchant
No
Customer
Pays Duty
Carrier
settles Import
duty in local
country
Yes
Duty Paid
Duty Unpaid
Good Experience
Bad Experience
Customs
Singapore | Thailand | Indonesia | Philippines 49
Products and Service
Contents
49
Opportunity in Indonesia
About us
Proposed Fee
Singapore | Thailand | Indonesia | Philippines 50
Proposed fee structure: Magento Technology
50
One time fee UNIT QTY FEE
Design & Development of Magento based e-commerce
* Price will increase if the hour spend increase for these services: global header,
footer, page background, messaging, content area, create content, static blocks,
styling, Magento/error template, faceted navigation, product listing, product
zoom, image gallery, related products, product reviews, cart items, messaging,
totals, shipping calculator, coupons, development server, deployment, source
control, project management tools setup (assembla, Github), launch configuration
and checklist
1 WebStore
1 IDR 120,000,000
RECURRING FEE (monthly)
Amazon hosting fee + Server management (Optional):
*We will bill Amazon / other 3rd
party invoices at a cost
WebStore/Month 1
IDR 5,000,000 to
IDR 15,000,000
Application Maintenance (Optional)
Scheduled and unscheduled maintenance to include response to support tickets
and minor enhancements, development/maintenance updates, account manager
for weekly support, server monitoring and backup, and application monitoring.
Maintenance and Minor Upgrade service is up to 40 hrs per month
WebStore/Month 1 IDR 12,000,000
Licensing Fee (Optional)
Based on Magento package selection
WebStore/Year 1 USD 15,000
PAYMENT TERMS
50% Down Payment at the beginning of the project
30% Mid-development project phase
20% After UAT
Singapore | Thailand | Indonesia | Philippines
51
One Time Setup Fee
Description Market Price (IDR)
Web development 5,000,000
Web design 10,000,000
Onsite configuration (tracker) 15,000,000
Onsite SEO 15,000,000
Upload content 5,000,000
Total Value 50,000,000
25,000,000
Proposed fee structure: SBC (Instant Package) Technology
(1/2)
Singapore | Thailand | Indonesia | Philippines
52
Description Basic
(5jt)
Standard
(15jt)
Pro
(20jt)
Hosting
Maintenance
Content management
Campaign management -
Standard marketing
(SEO and Social Media)*
-
Advance marketing
(Paid channel and Email
Marketing)*
- -
Customer service* - -
Order processing Opt Opt Opt
Fulfillment Opt Opt Opt
Delivery Opt Opt Opt
14
*detail discussion to follow
Monthly Fee Package Options
Proposed fee structure: SBC (Instant Package) Technology
(2/2)
Singapore | Thailand | Indonesia | Philippines
MARKETING UNIT QTY FEE
1) Onsite Analytics configuration: insert tracking pixel in each landing page
components, setup Google Analytics account, structure trackable components for
future analysis
One time
1
IDR 15,000,000
2) Onsite Health Check/Funnel Analysis: monitor landing pages and banners
performance, conduct purchase funnel analysis: home > catalog > product > cart >
checkout.
Once every 6 month
WebStore
assessment
IDR 25,000,000
If (1) + (2) One Time 1
IDR 40,000,000
IDR 30,000,000
3) Search Engine Optimization (SEO):
3a)Onsite Search Engine Optimization (SEO) setup:
Research and analyze relevant keywords, review current SEO performance, create
SEO text for key landing pages (main, category, brand), update metatags, etc.
within the website
3b) Offsite SEO:
Once completed, proceed to create linkbacks to strengthen Offsite SEO
Month 1 IDR 15,000,000
53
Proposed fee structure: Marketing (1/2)
Singapore | Thailand | Indonesia | Philippines 54
Proposed fee structure: Marketing (2/2)
54
MARKETING UNIT QTY FEE
Social Media Management: Design, create, A/B test, evaluate posts to achieve
agreed KPIs, e.g., engagements (likes, shares, comments), transactions, revenue.
Services include banner and ad-copy creatives. Still required Customer Service
related inquity to be handled by CS Team.
In-house equivalent of: designer, copywriter, and social media coordinator.
Per month 1 IDR 12,000,000
Online advertising channel + Optimization:
Conduct media planning, media buying, create Ad (banner, text), monitor daily ad,
conduct A/B testing, refresh non-performing ad to optimize for agreed KPIs, e.g.,
transactions, revenue, new customers, customer acquisition cost, etc.
There are 5 buckets of channels, in order of proposed priority: Facebook, Google
Search Engine Marketing (SEM), Facebook Retargeting, Google Retargeting,
Google Display Network (GDN)
Options for Optimization Goal: for Signup, Account setup, etc.
Channel /
Month
1
USD 5,000 – 10,000
Optimization fee of 20%
USD 10,000 – 49,999
Optimization fee of 15%
USD 50,000 – 99,000
Optimization fee of 12%
Singapore | Thailand | Indonesia | Philippines
Production UNIT QTY FEE
Digital image creation for non-model: photoshoot up to 3 angles, enhance photo
images
Item 1
IDR 50,000
Min of 100 SKUs
Digital image creation for model: photoshoot up to 3 angles with model, enhance
photo images
Item 1
IDR 70,000
Paket of 200 SKUs
Digital image creation for model: photoshoot up to 3 angles with model, enhance
photo images
Item 1
IDR 90,000
Paket of 100 SKUs
Content creation: create product description, optimize keywords for search
engines in Bahasa
Item 1 IDR 20,000
Content creation 2nd
language: create product description in English. Can only pick
1 language to be search engine optimized.
Rack 1 IDR 20,000
ProductionProposed fee structure: Production
27
Singapore | Thailand | Indonesia | Philippines 56
Thank You
56
Thailand Office
946 Dusit Thani Building, 4th fl., Rama IV
Rd. Bangrak, Bangkok, Thailand 10500
Indonesia Office
Apt. Istana Sahid – Mezzanine, Jl. Jend.
Sudirman Kav. 86, Jakarta 12940, Indonesia
Singapore Office
#2-13 Oxley Bizhub,
61 Ubi Road 1, Singapore 408727
Hadi Wenas
CEO Indonesia
E: wenas@acommerce.asia
Rena Gracia
Client Service Manager
E: rena.gracia@acommerce.asia
Philippines Office
aSpace Manila, 3rd flr., 110 Aboitiz bldg,
Legaspi Street, Makati, Philippines 1200

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A Commerce at a Glance

  • 1. aCommerce Indonesia Accelerating your growth in e-commerce Intro | Nov 2014
  • 2. Singapore | Thailand | Indonesia | Philippines 1 Contents 1 Opportunity in Indonesia About us Products and services Proposed Fee
  • 3. Singapore | Thailand | Indonesia | Philippines 2 In the next 5 years, online shop in Indonesia will grow at least 10x from 3% to 30% 2 SOURCE: McKinsey Consumer Insights Indonesia 2013 1 Question asked to the 29% of the population that cited using internet via PC/laptop in past 12 mos.
  • 4. Singapore | Thailand | Indonesia | Philippines 3 Other online research shows a more aggressive number: 46% intended to buy online in the next 12 months 3 77% of sellers say that a reason for selling online is that there are lots of people buying online Indonesian online shoppers… 46% of online Indonesians who have never shopped online expect to buy online within the next 12 months 41% 37% 20% 14% 14% 14% 14% use search engines to research use social to research retailer/store website news / magazine websites online blogs, forums or message boards emails and e-newsletters product comparison websites SOURCE: TNS Online Shopper Study – Indonesia – February 2013 Base: Online shoppers across all categories (Recent online shoppers n = 511)
  • 5. Singapore | Thailand | Indonesia | Philippines Source:: UBS Research, Nielsen, Comscore, PWC HK, ATKearny, researchandmarkets.com, Dailysocial, smu.edu.sg, E-commerce.org.sg Unit ID SG PH TH China US Population M 248 5.2 95 67.5 1350 315 # Online M 75 3.9 33 32 513 246 % Online % 30% 74% 34% 46% 38% 79% Retail Sales USD B 134 31 34 139 2,380 4,700 B2C E-commerce Market USD B 0.9 1.1 0.4 1.1 190 343 E-commerce % of Retail % 0.7% 3.5% 1.1% 0.6% 8% 9% 10X IDR 10 Trillion IDR 100 Trillion Indonesian Market in 4 – 5 years 4 In the next 5 years, online shop transactions in Indonesia is expected to grow 5-10x
  • 6. Singapore | Thailand | Indonesia | Philippines 5 For one of top online shop, the growth has already been driven by outside Jakarta customers 5 Customers by location (%) Customers by gender (%) Customers by age group (%) SOURCE: Internal Data and Analysis of Top Online Retailers Fashion category in Indonesia 2013 Male 43 Female57 16-20 21% 11% 21-25 21% >3631-3526-30 19% 27% 2% <15 Jakarta % shrinks from 41% to 22% in 6 months Most sales now already come from outside BIG cities Sumatra Kalimantan Others 370% 300% Jakarta Java excl. Jakarta 70+% 370%
  • 7. Singapore | Thailand | Indonesia | Philippines 6 Contents 6 Opportunity in Indonesia About us Products and services Proposed Fee
  • 8. Singapore | Thailand | Indonesia | Philippines 7 7 Our Vision Powering Ecommerce in Southeast Asia aCommerce means commerce anytime, anywhere, anything Our Mission Build Ecommerce technologies and services that help companies build brand value, acquire customers, drive sales, and scale their business Our Vision and Mission
  • 9. Singapore | Thailand | Indonesia | Philippines 8 In Indonesia, 50+ retailers/marketplaces and brands are working with us 8 Retailers / Marketplaces Brands
  • 10. Singapore | Thailand | Indonesia | Philippines 9 We have presence across multiple SEA countries and are supporting Clients enter / grow regionally 9 Thailand Singapore Indonesia Philippines • 2x 1500 sqm expandable to 20,000 sqm • Accessible from Jakarta: 5 mins from inner toll road, outer ring toll road, 1 near airport, another near harbor • 90+ staffs • 3600 sqm • 10 mins from downtown Bangkok • 130+ staffs • 200 sqm • 15+ staffs • 500 sqm • 10+ staffs Malaysia, Vietnam Coming soon 11.7M USD in funding from NTT Docomo, Sumitomo Ventures, CyberAgent Ventures, Inspire Ventures, Sinar Mas, AsiaPacificDigital, Ideosource, and Ardent Capital
  • 11. Singapore | Thailand | Indonesia | Philippines 10 Indonesia: in 8 months, we grew to a full scale operations with 2 Fulfillment Centers and 2 Distribution Centers 10 1,500 expandable to 5,000 1,500 expandable to 20,000 200,000 items 2 FCs: 15,000 inbound FC1: 2,000 to 5,000 outbound FC2: 1,000 to 3,000 outbound 2 DCs: 3,000 to 6,000 outbound Own delivery: 40 riders Own delivery: 4 vans
  • 12. Singapore | Thailand | Indonesia | Philippines 11 Our key management team across countries 11 Paul Srivorakul Group CEO Experience: ▪ CEO & Co-Founder, Ensogo Group (acquired by LivingSocial), Admax, DMS Group, NewMedia Peter Kopitz Group COO Experience: ▪ Co-Founder & MD, Zalora, Rocket Internet ▪ VP, Head of Execution, ACL Bank Piers Bennett Group CFO Experience: ▪ CFO, Ensogo (acquired by LivingSocial), DMS Group, ValuE- commerce John Srivorakul Group CTO Experience: ▪ CTO & Co-Founder, Ensogo (acquired by LivingSocial), Admax, NewMedia Sheji Ho Group CMO Experience: ▪ Sr. Product Manager, Moda Operandi ▪ Head of Customer Acq., LivingSocial, Gilt Groupe Tom Srivorakul CEO (Thailand) Experience: ▪ Co-Founder & MD, Ensogo (acquired by LivingSocial), DMS Group, NewMedia Hadi Wenas Co-CEO (Indonesia) Experience: ▪ Co-Founder Zalora Indonesia, Rocket Internet ▪ Engagement Manager, McKinsey & Co Adrian Suherman Co-CEO (Indonesia) Experience: ▪ VP of Digital, Telkomsel ▪ CEO (Indonesia), LivingSocial/DealKeren Ray Alimurung CEO (Philippines) Experience: ▪ VP of Business Dev., Lazada, Rocket Int. ▪ Sr. Product Manager, Amazon.com (USA) Sabina Chang CEO (Singapore) Experience: ▪ Category Manager & Head Merchandiser, Apple, Amazon, Walmart.com
  • 13. Singapore | Thailand | Indonesia | Philippines 12 Contents 12 Opportunity in Indonesia About us Products and services Proposed Fee
  • 14. Singapore | Thailand | Indonesia | Philippines 13 Our products and services 13 Cross Border ‘International’ Ecommerce From customs clearance to local FDA approval and cross-border logistics, we can scale your Ecommerce business across S.E. Asia and rest of world E-Fulfillment & Delivery Our specialized E-fulfillment centers can manage all your local Ecommerce logistics needs from Managed Drop-Ship, Flash Logistics and temp controlled storage to custom packaging, next day delivery, and COD Additional services include: Production, Call Center. Multi-Channel Development We design, develop, and operate Brand/Retailer storefront in marketplace(s) connected to our centralized inventory/fulfillment platform Performance Marketing We conduct funnel analysis and optimize your e-commerce website; manage media buying in Facebook, Google, local Ad networks, develop ad banner & copy, monitor regularly and optimize for conversion (transaction, revenue)
  • 15. Singapore | Thailand | Indonesia | PhilippinesSingapore | Thailand | Indonesia | Philippines 14 Brand Site (Maybelline.co.th) Marketplaces (Qoo10.sg Official Loreal Store and LINE Flash Sales) Popshop Storefront (Maybelline FB page, Vichy Site) Technology development for multi devices multi channels
  • 16. Singapore | Thailand | Indonesia | PhilippinesSingapore | Thailand | Indonesia | Philippines Example of SBC Website: lolalo.la 15
  • 17. Singapore | Thailand | Indonesia | PhilippinesSingapore | Thailand | Indonesia | Philippines Example of Magento Website: erafone.com (coming soon) 16
  • 18. Singapore | Thailand | Indonesia | Philippines 17 Channel management and marketplaces 17 We manage your brand across multiple marketplaces and online retailers Brand Gives inventory to aCommerce to manage, fulfill, and delivery on their behalf $ Brand Receive sales and marketing data, sometimes direct customer emails Production Customer Service Delivery Fulfillment Marketplace provides: aCommerce provides: Marketing Payments $ Sales Customers
  • 19. Singapore | Thailand | Indonesia | Philippines 18 Channel management process 18 1) Develop channel management strategy, sales & marketing plan, set goals & KPIs 2) Design, develop, and integrate store to fit channel requirements and brand guidelines 3) Merchandising and supply chain planning 4) Train call center team to learn products, T&Cs, inbound- outbound calls 5) Manage inventory, fulfill orders (quality control, storage, pick, pack, label, ship) 6) Customer delivery and payment collection (Cash or Credit card) 7) Maintain webstore, manage promotions, and product content updates. Daily tracking and reconcile with supply chain and accounting
  • 20. Singapore | Thailand | Indonesia | Philippines 19 Example of Brand stores in marketplaces 19 Loreal Official E-Store in Qoo10.sg Tefal Brand Store in Tarad.com (Rakuten TH) OPI Brand Store in Elevenia.co.id
  • 21. Singapore | Thailand | Indonesia | PhilippinesSingapore | Thailand | Indonesia | Philippines Launches new products on LINE FLASH SALE LINE Flash Sale Sold out in 5min 85% new customers 20
  • 22. Singapore | Thailand | Indonesia | Philippines 21 Our products and services 21 Cross Border ‘International’ Ecommerce From customs clearance to local FDA approval and cross-border logistics, we can scale your Ecommerce business across S.E. Asia and rest of world E-Fulfillment & Delivery Our specialized E-fulfillment centers can manage all your local Ecommerce logistics needs from Managed Drop-Ship, Flash Logistics and temp controlled storage to custom packaging, next day delivery, and COD Additional services include: Production, Call Center. Multi-Channel Development We design, develop, and operate Brand/Retailer storefront in marketplace(s) connected to our centralized inventory/fulfillment platform Performance Marketing We conduct funnel analysis and optimize your e-commerce website; manage media buying in Facebook, Google, local Ad networks, develop ad banner & copy, monitor regularly and optimize for conversion (transaction, revenue)
  • 23. Singapore | Thailand | Indonesia | Philippines 22 Our marketing process 22 After we integrate operations and fulfillment, we focus on marketing and sales by acquiring members, converting them to buyers, and retaining and growing loyal customers. Maintain & Enhance Ecommerce Platform Acquire Convert Retain Grow Measure & Analyze Data
  • 24. Singapore | Thailand | Indonesia | Philippines 23 Building loyal customers and repeat business 23 Converting online traffic to buyers is critical for any Ecommerce site. We test and optimize the best marketing-to-sales channels for driving customer loyalty. Dormant Buyers
  • 25. Singapore | Thailand | Indonesia | Philippines 24 24 Strategic partnership with Kapan Lagi Network, the biggest content portal group with targeted online visitors Local Affiliate Network Thorough funnel analysis from home catalogueproductshopcartcheckou tpaymentdelivery to maximize ROI Design & CR Optimization PopShop and LINE m-commerce are examples of our innovation products to push more conversions Other proprietary channels Paid Marketing requires us to manage the tech, media planning, and buying to optimize CPA (cost-per-acquisition) Paid Marketing Organic marketing and CRM go hand-in- hand in driving existing customers to repurchase and acquire other customers Organic Marketing & CRM SEO optimized content creation to boost site ranks and drive more free traffics to minimize Customer Acquisition Cost SEO Optimization Different marketing services
  • 26. Singapore | Thailand | Indonesia | Philippines 25 25 Happy Customers High Quality Traffics Converting Website Excellent Customer Experience Key questions / analyses • How likely are customers to refer YOU to their friends and family? • By location, By age-groups, By payment type, By category, etc • How is your Repeat Customers %? Repeat frequency? • What are the current major pain points? • What are the overall actual Onsite Conversion Rate? • By channel, by location, by device, etc. • What's the specific conversion in each step leading to transaction? (funnel analysis) • By channel, by location, etc. • How user browse through your website? (page flow analysis) • What are the Conversion Rate, Average Order Value? Average Items per Order? • By new customers vs existing customers? • By non-paid vs paid channels? • By different channels? Conversion optimization framework
  • 27. Singapore | Thailand | Indonesia | Philippines 26 26 Converting website: Funnel analysis to increase transactions from current traffics
  • 28. Singapore | Thailand | Indonesia | Philippines 27 27 Example of mouse flow measurement Three things we measure: ▪ Every event action and banner on key pages ▪ Detailed traffic sources to key landing pages via UTM ▪ Mouse flow on key pages (temporary) Example of detailed UTM link: ▪ http://www.zalora.co.id/Drop-Waist-T-Shirt-Dress- 134208.html?wt_sm=id.Social%20Media%20PR.Fa cebook.P04-09- 2000.09Apr_2000_f_sales_apparel_banner_EZRA Dress.09Apr_2000_f_sales_apparel_banner_EZRA Dress&utm_medium=Social%20Media%20PR&utm _source=Facebook&utm_campaign=P04-09- 2000&utm_content=09Apr_2000_f_sales_apparel _banner_EZRADress ▪ The link contain detailed info of: channel, date uploaded, product category, gender, brand, campaign, banner A/B testing code Conversion measurement: You can't optimize what you can't measure
  • 29. Singapore | Thailand | Indonesia | Philippines 28 28 Illustration Cost Per Order (CPO) Revenue Revenue / Cost ratio (ROI) Customer Acquisition Cost Customer Lifetime Value Get as many transactions with lowest cost Get as many revenue with lowest cost Get as many new customers with lowest cost Get as many new customers with high value Optimizing for High Quality traffics start with identifying specific conversion goals
  • 30. Singapore | Thailand | Indonesia | Philippines 29 • Not only we increased the ad visits but we also increased the ad transactions • We also indirectly increased the non-ad visits and transactions (spill-over effect) • CIR is Cost Income Ratio (the reverse of ROI) • We optimized CIR from 1.33 to 0.50 in just 8 weeks • CIR of 0.50 means for every dollar revenue you get, you spent on 50 cents on marketing Example of actual client reports that we help manage and optimize Online Marketing
  • 31. Singapore | Thailand | Indonesia | Philippines 30 Our products and services 30 Cross Border ‘International’ Ecommerce From customs clearance to local FDA approval and cross-border logistics, we can scale your Ecommerce business across S.E. Asia and rest of world E-Fulfillment & Delivery Our specialized E-fulfillment centers can manage all your local Ecommerce logistics needs from Managed Drop-Ship, Flash Logistics and temp controlled storage to custom packaging, next day delivery, and COD Additional services include: Production, Call Center. Multi-Channel Development We design, develop, and operate Brand/Retailer storefront in marketplace(s) connected to our centralized inventory/fulfillment platform Performance Marketing We conduct funnel analysis and optimize your e-commerce website; manage media buying in Facebook, Google, local Ad networks, develop ad banner & copy, monitor regularly and optimize for conversion (transaction, revenue)
  • 32. Singapore | Thailand | Indonesia | Philippines 31 E-Fulfillment process 31 After site development, we setup: payment systems, accounting processes, call center training, ERP and WMS, then transfer your inventory to our fulfillment center for fast shipping and C.O.D Acommerce Management Platform (AMP) Call Center Reps & Software Payment Gateway Accounting Process Fulfillment (Pick & Pack) Dispatch & Route Plan Delivery & COD Order Management System (OMS) Warehouse Management System (WMS) Transportation Management System (TMS)
  • 33. Singapore | Thailand | Indonesia | Philippines 32 aCommerce Management Platform (AMP) & Tech Stack 32 AMP Dashboard Partner Profile Fulfillment Reports Inventory Reports Sales Reports B.I. Reports Billing Reports Shipping Reports Data Management Reporting Dashboard & Business Intelligence Data Management System Marketing Systems Google Adwords Google Analytics Facebook Adroll Campaign Monitor Customer Service Voxtron Phone Support Live Chat Desk.com (Ticketing) Phone Orders Warehouse Management System (WMS) NetSuite Dispatching System aCommerce Developed Delivery System Delivery Manager Route Planner Mobile Delivery App Warehouse Tools Dispatching Tools Delivery Tools Operations Tools Finance & Payment Systems Netsuite Payment Gateways Banking Platforms E-commerce Site (Magento) mCommerce Site (Magento) PopShop Platform (Magento) Customers (Brands, Retailers, & Publishers) Marketing Reports 3rd Party Platforms we custom build on or API Proprietary systems we’ve built in-house Tech Partners:
  • 34. Singapore | Thailand | Indonesia | Philippines 33 33 Goods to be sold will be inbounded before LIVE Goods with complete documentation and proper planning will be inbounded within 24hrs Goods to be stored in aCommerce Fulfillment Center while LIVE New inbounded products will go through:  Photoshoot  Digital editing  Content creation Orders to be processed (picked and packed) within 24hrs Packed orders will be shipped same day & delivered within promised delivery date:  Jakarta: 1-2 days  Others: 3-6 days COD payment will be collected at delivery point and transferred once a month Transactions happened in:  WebStore  Phone Order Call Center  Complaints  Post-service  Upselling Production Inbound Storage OutboundTransaction DeliveryE-Fulfillment Best-in-class process to support you to deliver excellent customer experience
  • 35. Singapore | Thailand | Indonesia | Philippines 34 Detailed activities in each fulfillment process 34 DetailsProcess Photos from 24/7 CCTV INBOUND Unload, Unpack, Receive, Visual QC, Location Assignment, Put-Away, Goods-Received Report Add-on: Advanced QC OUTBOUND Generate Picking List, Pick Items, Standard Packaging, Generate Invoice, Dispatch to Delivery Team, Manage Delivery Team, Provide Tracking Add on: Packaging production, Special care handling, etc. STORAGE Store, 24/7 Security (CCTV), Stock Record, Return Excess Item (if necessary) Add-on: Additional stock counting
  • 36. Singapore | Thailand | Indonesia | Philippines 35 aCommerce Managed Drop-Ship allows multi-brand retailers and marketplaces to offer a better customer experience 35 Better experience and lower fulfillment costs for merchants and customers Customer buys 3 products from 3 different merchants on a multi-brand site or marketplace aCommerce picks up “unpacked” items from 3 merchants aCommerce consolidates the individual items and assembles the order at the fulfillment center, all processed and fulfilled same day Customer receives the order in one branded package next day via our express delivery
  • 37. Singapore | Thailand | Indonesia | Philippines 36 36 Pick-up across Greater Jakarta and nationwide delivery ▪ Pick-up Management provide package pick-up services in Greater Jakarta (Jabodetabek) from 2 Distribution Centers We plan to expand to next Top 5 cities in the next 6 months (Bandung, Surabaya, Medan, Semarang, Denpasar) and other big cities ▪ Shipping Management provide Delivery services to all Indonesia – Greater Jakarta deliveries: managing own riders with advanced Transportation Management System (TMS) optimized for customer experience and Value Added Services (e.g., COD, D/CCOD, QRCOD) – Outside Greater Jakarta deliveries: managing and curating multiple 3PL partners, optimized based on their quality, capacity, and Value Added Services provided (e.g., COD)
  • 38. Singapore | Thailand | Indonesia | Philippines 37 37 Real Time Status Technology investment sets aCommerce apart from other 3PLs (1/3) ▪ All our couriers are equipped with smartphones to allow them to send real-time status of success or failed delivery
  • 39. Singapore | Thailand | Indonesia | Philippines 38 38 Real Time Status Technology investment sets aCommerce apart from other 3PLs (2/3) ▪ The same application allows couriers to search for direction and courier manager to monitor rider performance and provide support if necessary ▪ Technology roadmap includes allow user to get access to where the courier is and estimated of time of delivery based on LIVE location
  • 40. Singapore | Thailand | Indonesia | Philippines 39 Technology investment sets aCommerce apart from other 3PLs (3/3) ▪ The same application allows couriers to get digital signature of recipient and photo proof(s) of success or failed delivery ▪ All the information will then be kept as a digital Proof Of Delivery 39 Real Time Status
  • 41. Singapore | Thailand | Indonesia | Philippines 40 Cash On Delivery is available in Greater Jakarta and other Top 30 cities in Indonesia 40 Cash On Delivery Jakarta Pusat, Jakarta Utara, Jakarta Timur, Jakarta Selatan, Jakarta Barat, Kota Bandung, Kota Bogor, Kota Bekasi, Kota Depok, Kota Cimahi, Kabupaten Gresik, Kabupaten Sidoarjo, Kota Surabaya, Kota Malang, Kota Madiun, Kota Kediri, Kota Denpasar, Kota Tangerang, Kota Tangerang Selatan, Kota Yogyakarta, Kota Jambi, Kota Surakarta, Kota Semarang, Kota Banjarmasin, Kota Palangka Raya, Kota Samarinda, Kota Balikpapan, Kota Batam, Kota Bandar Lampung, Kota Banda Aceh, Kota Pekanbaru, Kota Makassar, Kota Manado, Kota Padangpanjang, Kota Padang, Kota Palembang, Kota Medan ▪ Cash On Delivery (COD) is critical to unleash online shopping in Indonesia ▪ Together with delivery couriers, aCommerce can provide COD service in Greater Jakarta and Other Top 30 cities across Indonesia with maximum value per transaction of IDR 2mio ▪ In-progress to add more COD cities in East Indonesia
  • 42. Singapore | Thailand | Indonesia | Philippines 41 Debit (Mandiri, BCA) and Credit Card (Visa Mastercard) On Delivery is only available in Jakarta for now 41 Debit / Credit Card on Delivery ▪ Riders carry two mobile EDC machines from Top 2 banks with largest market shares ▪ Both can accept ALL credit cards ▪ Each can accept Debit Cards from Mandiri and BCA
  • 43. Singapore | Thailand | Indonesia | Philippines 42 (coming soon) QR Code payment by FlashIZ 42 QR Code payment 1. ENTER 4 DIGITS PIN CODE 2. ENTER AMOUNT 3. CONFIRM TO GENERATE QR CODE 4. CUSTOMER SCANS THE QR CODE 5. INSTANT CONFIRMATION for BOTH ▪ Courier: Generate QR Code if user select COD payment by QR Code ▪ Customer: Scan the QR Code provided by Courier
  • 44. Singapore | Thailand | Indonesia | Philippines 43 Example of small thing we did for e-commerce customers 43 Failed Delivery Management ▪ 1st attempt delivery is non-scheduled Failed 1st attempt will prompt rider to leave failed delivery notification slip so they can arrange a scheduled delivery ▪ 2nd attempt delivery is scheduled We give customers 24hr to call for scheduled delivery If no call, we call customers to schedule 2nd attempt delivery ▪ There will be extra charge for extra attempts beyond 2nd attempt
  • 45. Singapore | Thailand | Indonesia | Philippines 44 Group buying model will be very similar to our Flash Logistic for flash sales and daily deals 44 Flash fulfillment is important for specific ecommerce models (e.g. Flash Sales) that requires processing high volume of orders within a short turnaround time. 1) Focus on selling one product at a good price with thousands in- stock 2) Our Customer service learns the product and terms and conditions 3) Pick up the product from your warehouse and delivery to our fulfillment center 4) Prepack the 1000’s of single orders and prepare for ‘mass’ shipping 5) Packages are insured and carefully delivered next day to customer 6) Confirm customer pick-up, process payment (Cash or Credit card) 7) Accounting pays out in 30 days due to potential returns and refunds
  • 46. Singapore | Thailand | Indonesia | Philippines 45 Our products and services 45 Cross Border ‘International’ Ecommerce From customs clearance to local FDA approval and cross-border logistics, we can scale your Ecommerce business across S.E. Asia and rest of world E-Fulfillment & Delivery Our specialized E-fulfillment centers can manage all your local Ecommerce logistics needs from Managed Drop-Ship, Flash Logistics and temp controlled storage to custom packaging, next day delivery, and COD Additional services include: Production, Call Center. Multi-Channel Development We design, develop, and operate Brand/Retailer storefront in marketplace(s) connected to our centralized inventory/fulfillment platform Performance Marketing We conduct funnel analysis and optimize your e-commerce website; manage media buying in Facebook, Google, local Ad networks, develop ad banner & copy, monitor regularly and optimize for conversion (transaction, revenue)
  • 47. Singapore | Thailand | Indonesia | Philippines 46 S.E. Asia Market Entry Cross border Ecommerce 46 SEA SEA Cross Border Expansion ▪ Enter SEA with a local partner that can help you expand across the region with economies of scale ▪ Leverage the upcoming “free trade” ASEAN Economic Community (AEC 2015) policy to expand your business across the region ▪ Build and own direct consumer relationships, collect data, and control the customer experience
  • 48. Singapore | Thailand | Indonesia | Philippines 47 Cross border fulfillment and services 47 Customs clearance and FDA approvals by market (i.e. Beauty & Food) May take 4-12 weeks depending on country Provide agent or merchant of record agreements to expedite local distribution and sales Provide warehousing (bonded optional), fulfillment, and delivery in local markets Drop ship from one market to the rest of SEA, we handle return processing, customer service, and payment collection
  • 49. Singapore | Thailand | Indonesia | Philippines 48 International Shipping Method: Duty paid or Unpaid 48 You should provide consumers with a DUTY PAID solution that can speed up transit time in the case of high-value orders. This provides the ultimate customer experience as consumers do not like getting unexpected invoices. International customer order International customer order Shipping costs, Duty & VAT are calculated Only Shipping cost calculated Carrier issues customer import duty invoice Carrier settles import Duty in local country Order is returned to merchant No Customer Pays Duty Carrier settles Import duty in local country Yes Duty Paid Duty Unpaid Good Experience Bad Experience Customs
  • 50. Singapore | Thailand | Indonesia | Philippines 49 Products and Service Contents 49 Opportunity in Indonesia About us Proposed Fee
  • 51. Singapore | Thailand | Indonesia | Philippines 50 Proposed fee structure: Magento Technology 50 One time fee UNIT QTY FEE Design & Development of Magento based e-commerce * Price will increase if the hour spend increase for these services: global header, footer, page background, messaging, content area, create content, static blocks, styling, Magento/error template, faceted navigation, product listing, product zoom, image gallery, related products, product reviews, cart items, messaging, totals, shipping calculator, coupons, development server, deployment, source control, project management tools setup (assembla, Github), launch configuration and checklist 1 WebStore 1 IDR 120,000,000 RECURRING FEE (monthly) Amazon hosting fee + Server management (Optional): *We will bill Amazon / other 3rd party invoices at a cost WebStore/Month 1 IDR 5,000,000 to IDR 15,000,000 Application Maintenance (Optional) Scheduled and unscheduled maintenance to include response to support tickets and minor enhancements, development/maintenance updates, account manager for weekly support, server monitoring and backup, and application monitoring. Maintenance and Minor Upgrade service is up to 40 hrs per month WebStore/Month 1 IDR 12,000,000 Licensing Fee (Optional) Based on Magento package selection WebStore/Year 1 USD 15,000 PAYMENT TERMS 50% Down Payment at the beginning of the project 30% Mid-development project phase 20% After UAT
  • 52. Singapore | Thailand | Indonesia | Philippines 51 One Time Setup Fee Description Market Price (IDR) Web development 5,000,000 Web design 10,000,000 Onsite configuration (tracker) 15,000,000 Onsite SEO 15,000,000 Upload content 5,000,000 Total Value 50,000,000 25,000,000 Proposed fee structure: SBC (Instant Package) Technology (1/2)
  • 53. Singapore | Thailand | Indonesia | Philippines 52 Description Basic (5jt) Standard (15jt) Pro (20jt) Hosting Maintenance Content management Campaign management - Standard marketing (SEO and Social Media)* - Advance marketing (Paid channel and Email Marketing)* - - Customer service* - - Order processing Opt Opt Opt Fulfillment Opt Opt Opt Delivery Opt Opt Opt 14 *detail discussion to follow Monthly Fee Package Options Proposed fee structure: SBC (Instant Package) Technology (2/2)
  • 54. Singapore | Thailand | Indonesia | Philippines MARKETING UNIT QTY FEE 1) Onsite Analytics configuration: insert tracking pixel in each landing page components, setup Google Analytics account, structure trackable components for future analysis One time 1 IDR 15,000,000 2) Onsite Health Check/Funnel Analysis: monitor landing pages and banners performance, conduct purchase funnel analysis: home > catalog > product > cart > checkout. Once every 6 month WebStore assessment IDR 25,000,000 If (1) + (2) One Time 1 IDR 40,000,000 IDR 30,000,000 3) Search Engine Optimization (SEO): 3a)Onsite Search Engine Optimization (SEO) setup: Research and analyze relevant keywords, review current SEO performance, create SEO text for key landing pages (main, category, brand), update metatags, etc. within the website 3b) Offsite SEO: Once completed, proceed to create linkbacks to strengthen Offsite SEO Month 1 IDR 15,000,000 53 Proposed fee structure: Marketing (1/2)
  • 55. Singapore | Thailand | Indonesia | Philippines 54 Proposed fee structure: Marketing (2/2) 54 MARKETING UNIT QTY FEE Social Media Management: Design, create, A/B test, evaluate posts to achieve agreed KPIs, e.g., engagements (likes, shares, comments), transactions, revenue. Services include banner and ad-copy creatives. Still required Customer Service related inquity to be handled by CS Team. In-house equivalent of: designer, copywriter, and social media coordinator. Per month 1 IDR 12,000,000 Online advertising channel + Optimization: Conduct media planning, media buying, create Ad (banner, text), monitor daily ad, conduct A/B testing, refresh non-performing ad to optimize for agreed KPIs, e.g., transactions, revenue, new customers, customer acquisition cost, etc. There are 5 buckets of channels, in order of proposed priority: Facebook, Google Search Engine Marketing (SEM), Facebook Retargeting, Google Retargeting, Google Display Network (GDN) Options for Optimization Goal: for Signup, Account setup, etc. Channel / Month 1 USD 5,000 – 10,000 Optimization fee of 20% USD 10,000 – 49,999 Optimization fee of 15% USD 50,000 – 99,000 Optimization fee of 12%
  • 56. Singapore | Thailand | Indonesia | Philippines Production UNIT QTY FEE Digital image creation for non-model: photoshoot up to 3 angles, enhance photo images Item 1 IDR 50,000 Min of 100 SKUs Digital image creation for model: photoshoot up to 3 angles with model, enhance photo images Item 1 IDR 70,000 Paket of 200 SKUs Digital image creation for model: photoshoot up to 3 angles with model, enhance photo images Item 1 IDR 90,000 Paket of 100 SKUs Content creation: create product description, optimize keywords for search engines in Bahasa Item 1 IDR 20,000 Content creation 2nd language: create product description in English. Can only pick 1 language to be search engine optimized. Rack 1 IDR 20,000 ProductionProposed fee structure: Production 27
  • 57. Singapore | Thailand | Indonesia | Philippines 56 Thank You 56 Thailand Office 946 Dusit Thani Building, 4th fl., Rama IV Rd. Bangrak, Bangkok, Thailand 10500 Indonesia Office Apt. Istana Sahid – Mezzanine, Jl. Jend. Sudirman Kav. 86, Jakarta 12940, Indonesia Singapore Office #2-13 Oxley Bizhub, 61 Ubi Road 1, Singapore 408727 Hadi Wenas CEO Indonesia E: wenas@acommerce.asia Rena Gracia Client Service Manager E: rena.gracia@acommerce.asia Philippines Office aSpace Manila, 3rd flr., 110 Aboitiz bldg, Legaspi Street, Makati, Philippines 1200