Jakarta, Indonesia Sentinel — E-commerce platform Bukalapak has officially announced the discontinuation of its physical goods marketplace. The company announced its pivots toward new business strategies that focus on virtual products and other ventures such as gaming and retail.
In an official statement, Bukalapak’s Head of Media & Communications, Dimas Bayu, revealed that the company aims to sharpen its focus on digital services that have been developed over the past few years.
“We believe that by concentrating on virtual product services, Bukalapak can strengthen its position in the digital ecosystem and provide the best possible service to users,” Dimas stated on Thursday, January 9, as reported by CNN Indonesia.
The company emphasized that ceasing the sale of physical products will not have a material impact on its revenue. “Physical goods sales on the Bukalapak platform contribute less than 3% to the company’s total revenue. On the contrary, this move supports our efforts to achieve positive EBITDA and ensure sustainable, profitable business growth,” the management noted in its statement.
As the company cease its physical goods marketplace, Bukalapak will be focusing on its virtual product services as a long-term strategy to remain relevant and competitive in the industry.
New Business Strategies
Beyond virtual products, Bukalapak has been expanding its portfolio to include new business lines such as Mitra Bukalapak, gaming, investment, and retail. Over the past few years, these ventures have shown promising potential, according to the company.
“We see positive prospects in these segments, which are also integral to the company’s growth strategy,” Dimas added.
The company expressed confidence that the decision will drive stronger growth and position Bukalapak for a sustainable future in the evolving digital economy.
Transitions Period
According to Antara, Bukalapak will gradually phase out its physical goods marketplace starting in February 2025 as part of the transition. Bukalapak will cease sales of various product categories, including home accessories, electronics, e-vouchers, fashion, food, gaming items, mobile phones, beauty and personal care products, as well as baby and household supplies. Customers will be able to place orders for these items until February 9, 2025, Jakarta time.
During this transition, Bukalapak has pledged its support to merchants by providing guidance and resources to ensure the process is carried out smoothly and securely. “We deeply value the trust our customers have placed in us over the years and will ensure that their rights are upheld throughout the transition period,” the company stated.
The management emphasized that the Bukalapak app, website, and Mitra Bukalapak services will continue to operate and remain accessible to users and customers for existing services.
Financial Conditions
Amid its plans to shift business direction, the company assured stakeholders of its robust financial position. As of the third quarter of 2024, Bukalapak reported cash, cash equivalents, and liquid investments totaling Rp19 trillion (approximately $1.25 billion).
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The management stated that these funds would be allocated to support the growth of the company and its subsidiaries, ensuring maximum benefits for stakeholders, particularly shareholders.
“This capital will be used to drive the company’s growth and that of its subsidiaries, delivering optimal value to our stakeholders, especially our shareholders,” Dimas states.
The strategic pivot underscores Bukalapak’s commitment to adapting to the rapidly evolving digital landscape, positioning itself for sustainable growth while continuing to deliver value to its users, partners, and stakeholders in the years to come.
(Raidi/Agung)
