LetMeStore: Malaysian E-Commerce Fulfilment Startup
Not all companies have been spared the impact of the pandemic, but some have certainly fared better and have even been positively affected.
Thanks to the e-commerce boom in Q2-4 of 2020, e-commerce processing service providers have been some of the industry players that have performed well, it has been learned.
Fadhli, Founder and CEO of LetMeStore told Vulcan Post: “We have seen almost 20-30% growth in MOM in terms of the number of packages. Since March 2020, almost every month, we have broken our record in terms of the number of parcels per month. “
But even before the pandemic, the 4-year-old company had stable business growth. Compared to 2019, their number of onboard merchants has increased by almost 100%, and their year-over-year growth for the number of packages they process per month is almost 300%.
They serve 2 merchant segments:
- Corporate customers, which are mostly established brands that sell as official stores in major markets like Lazmall and Shopee Mall,
- Online sellers in the social commerce scene, who are typically active on Facebook, Instagram, and other social media platforms.
The latter is more of their primary segment, and LetMeStore benefits them by doing all of their fulfillment tasks, leaving salespeople to focus on sales and marketing.
Not enough e-commerce players yet
Since they have positioned the company strongly in the social commerce segment, they mainly work with traders who adopt the stockist-agent system. Therefore, they need to take a different approach than Lazada / Shopee sellers.
“One of the biggest challenges is that traders in this category usually don’t have an adequate system to manage their orders and fulfillment. The communication points are simply WhatsApp and Facebook, ”said Fadhli.
Needing to adopt completely different methods and tools to serve them, LetMeStore designed an electronic processing system to meet their specific needs.
Many other e-commerce fulfillment service providers have also created their own management systems for merchants, which seems to be quite common practice.
To someone who is not involved in the industry, it seems that while we have a saturation of e-commerce players in Malaysia, the end-to-end e-commerce execution industry is saturated as well.
But Fadhli does not agree. He said the e-commerce market in Malaysia was growing by more than 20% year-on-year and that globally research has shown the same, where they found that the pandemic has accelerated the passage of experiences. from physical retail to e-commerce for 5 years.
“In fact, my opinion on this is that the current market players are still not enough to cope with the growth,” Fadhli said.
“At this point, I think the cake is big enough for everyone. However, in this short period, we must quickly strengthen our competitive advantage, as the market will end up saturated in the near future. “
Partnerships are an integral part of growth
MaGIC, which guided LetMeStore in June 2016, has been an integral part of their growth. “We almost closed the company, if it wasn’t for having been selected to join MaGIC’s GAP cohort 3,” Fadhli recalls.
The resident mentor helped them refine their ideas, test them, and eventually pivot the business back to its current model.
From the MaGIC events, LetMeStore has been able to secure a few partnerships with other startups also directly involved in e-commerce.
They even met their first investor, Ganesh Kumar Bangah, founder of MOL Global and Commerce.Asia, at one of these events. He has been their mentor and strategic partner ever since.
Working through partnerships with companies that offer e-commerce management services such as Commerce.Asia and Bizapp mentioned above has also been effective for the growth of LetMeStore.
As they share a similar customer base, this has helped lower their marketing costs as the approach is more focused and already supported by existing data.
Then they look to expand their services outside of the Klang Valley through partnerships with warehouses that are currently underutilized.
Fadhli said, “We could easily convert them to e-commerce processing warehouses with our technical know-how and cloud-based technology.”
“It could help us grow our business at minimum cost by helping other warehouses stay relevant. At the same time, it will benefit our customers who can store their products in multiple locations for a shorter logistical time. “
To achieve this however, they must first ensure that their system is robust enough to accommodate the expansion, and they are currently developing the plug-in.
- You can read more about LetMeStore here.
- You can read more articles on e-commerce here.
Featured Image Credit: Fadhli Tahar, CEO and Founder of LetMeStore
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