Getting To Know Vertical Integration System In Logistics Services

Illustration. (Photo: Doc. Antara)

JAKARTA - A vertical integration system that combines online shopping platforms with courier services is commonly used by eCommerce players. According to the Director of Digital Economy Celios, Nailul Huda, this kind of business pattern aims to facilitate the delivery of goods from shopping platforms.

In addition, consumers also benefit. The supply chain for goods delivery is more efficient because it is connected between e-commerce and expedition service providers.

"This practice is actually a practice of vertical integration where one company has a business line or cooperates with other companies in one production or distribution process to support the company's activities," Nailul said, quoted Thursday, June 13.

So Nailul explained, does the vertical integration system violate the rules? In fact, according to Nailul, it is fine if the pla orm eCommerce does this.

According to him, almost all eCommerce players provide an opportunity for sellers to choose the available expedition companies and have officially cooperated. The same thing is also open to buyers or users/buyers who can choose which logistics companies they will use.

This explanation also answers the plan of the Business Competition Supervisory Commission or KPPU, which is investigating the alleged monopoly of Lazada and Shopee.

"The selection of couriers can be agreed with sellers and buyers. So the element of turning off this e-commerce/merchant/other courier business that I think should be proven by the KPPU. I still suspect that I can't prove it because the market is still wide open," said Nailul.

Nailul also argues that the alleged monopoly that has recently become a topic of discussion needs proof. Because, Lazada, Shopee and other pla orm eCommerce such as Tokopedia, Blibli, and Tik Tok Shop, almost use the same strategy, namely a vertical integration system on the platform. The system allows airline airlines to play in the freight forwarding business.

We'll see, Shopee has Shopee Express where goods are sent on the Shopee platform via Shopee Express. Even on the delivery menu, we have no choice to take other courier services. Everything is by the system by Shopee and several other platforms," he said.

Like Shopee, the orange-style eCommerce, displays various options based on price categories, speed and delivery service capacities. However, buyers can still replace available logistics companies based on the categories they selected after checkout, before the seller sends the goods.

Likewise in Tokopedia, Lazada, and Tiktok Shop. The name of the logistics company is not listed in the first choice of delivery services. There are only options for the Instant, Regular, Same Day, Economics/Efforts to Cargo categories along with the delivery rates.