Increasing sales through added channels
Convenience through cash on delivery
To help to improve merchants’ sales, aCommerce aims to remove the barriers for merchants to enter the ecommerce space. One of the most crucial barriers in the Philippines, along with other emerging Asian markets, is access to payment. Low credit card penetration is still an issue in the region.
For aCommerce, cash on delivery (COD) fills this gap. Alimurung explains further:
COD payment may sound like a crude developing market solution, but it’s more elegant than over-the-counter payment. With over-the-counter payment, you’re asking the customer to buy the merchandise twice. You make a purchase decision and finally add it to the cart, then after you check out you’ll realize you haven’t bought it yet. You still have to go out and pay. That is very inconvenient. With COD, the next thing that happens is the guy is at your door with your item.
In Thailand, Indonesia, and Singapore, aCommerce has built its own delivery fleet that brings orders and collects payment from the customer.
In the Philippines, the company will begin by outsourcing delivery services until its customer base is large enough to justify building its own fleet. Alimurung underscores that ecommerce is still in its nascent stage, only comprising around one to two percent of the Philippines’ entire retail industry. However, by helping brands and retailers bring their products online, he believes this will improve product selection for the customers.
Currently, aCommerce’s Philippines warehouse is open and ready for business. Its plan this year is to begin bringing merchants on board and grow its team within the country.