Are you going on a holiday abroad but shocked by the baggage fees? Just start a 'JasTip' business! Many Indonesians who live or are going on vacation overseas open this service to help ease the burden of baggage costs and plane ticket prices. But this business can't be done carelessly. Let's check out the tips below:

What is JasTip?

True to its name, JasTip or Jasa Titipan (a "Hired Errand/Consignment Service") is a business that offers a service for purchasing and holding goods from one region to another. There are various types of JasTip businesses, ranging from consigning specific store products only in Indonesia to consigning items that can only be obtained overseas or on a different island.

For consumers, the existence of this JasTip business allows them to buy goods that are not available in their area without having to leave the house. For the service providers, starting a JasTip business can help reduce the cost burden of travel and baggage, and bring in a decent profit.

For example, imagine you fly from Perth to Bali on an economy flight for $350, including baggage. Let's say for every JasTip item, you set a $5 margin. If you manage to get just 20 consigned items, you could already earn $100 to offset your travel costs.

How the JasTip business works

The operation of a JasTip business varies depending on its objective. Here are some of them:

1. Purchase JasTip

This type of JasTip is the most commonly practiced by Indonesians going on holiday abroad or returning home from overseas. Usually, this type of JasTip is intended for buying items that aren't yet available in Indonesia, goods typical of the country in question, or items that are available in Indonesia but are cheaper abroad.

To run this type of JasTip, the service provider usually specifies what items can be purchased and what profit margin they want. For example, for an item priced over Rp500,000, the applied margin is Rp50,000, excluding shipping costs.

It's not uncommon for these JasTip business owners to also offer a 50% down payment (DP) service first, with the remainder paid when the item arrives. Well, if you're interested in starting a Purchase JasTip service and offering a DP system, you can use your Honest credit card first while buying these consigned items overseas. That's because the card can be used in over 100 countries worldwide, and offers free foreign transaction fees.

The good thing is, if you use the Honest App, you can pay your total credit card bill as soon as the buyer pays off their consigned item. This credit card also offers many cashback programs, so the risk of loss can be minimized.

2. Delivery JasTip

This type of JasTip business is more often carried out by Indonesians living abroad. In this system, consumers have to buy the goods themselves, which are then sent by the person who opened the JasTip business.

Generally, the cost of this type of JasTip depends on the weight of the item being consigned. For example, a minimum 1 kg shipment is priced at Rp150,000, not including the postage fee. Although it seems expensive, this service is a solution for Indonesians abroad who want to send items to family in Indonesia at a more affordable cost compared to cargo.

3. Document delivery JasTip

Besides goods, another thing commonly "consigned" by Indonesians abroad is important documents, such as vehicle registration (STNK), ID cards (KTP), and so on. Unlike goods and purchases, the postage fee for this document delivery service is usually fixed regardless of the type of document.

Tips for starting a JasTip business for beginners

1. Know which items can enter and leave a specific country

The first tip is to know which items are not prohibited in the country you are visiting and in Indonesia. Because if you accept orders for prohibited items, it's possible those items could be confiscated at the airport, and you would have to pay a fine.

Besides prohibited items, some countries also enforce strict rules about the price of electronic goods that can be brought out of the country. For example, if your friend asks you to buy an Apple product in Australia, make sure the price is less than $10,000 AUD so you don't get fined or have to pay tax.

2. Know which items are light in weight but take up a lot of space

If you open a JasTip business with a per-kilogram payment scheme, make sure you know which items are not heavy but are quite large in size. Examples include bags or shoes. Because accommodating items like these will certainly fill up your baggage quickly.

3. Know the type of items that require special packaging

When starting a JasTip business, especially for items from abroad, you must re-wrap the consigned goods. The goal is to ensure no consigned items violate the regulations of the local country or Indonesia.

Well, during this re-packing process, you also need to know which items require special packaging. For instance, make-up and skin care packaged in glass bottles or large electronic devices.

4. Record the consigned items and their prices

If you open a Purchase JasTip, it is mandatory to record the type of items to be purchased, the quantity, and the nominal profit you want to get. This is so you don't forget the Cost of Goods Sold (HPP) and the selling price of the item.

To make it easier and more economical, during the item purchase process, use the Honest credit card. This 100 million limit credit card comes with an app to record all your credit expenditures, which will facilitate your future financial evaluation process. The credit card application process is also easy. Just 5 minutes, and your card will be ready to be delivered to your home.

5. Promote on social media

The fourth tip is to market your service on social media, whether through WA stories, Instagram, or even Facebook. The goal is so your friends, whether colleagues or school friends, know and can order your JasTip service if needed.

The JasTip business is quite easy, but it still has risks. Make sure the items you carry are not damaged and do not violate the immigration rules of the country in question and Indonesia.

Frequently asked questions:

1. How much is the profit for international JasTip?

The total profit for JasTip (consignment service) depends on the item sold. Generally, JasTip providers take a profit of 5-20 percent of the selling price.

2. What are the benefits of doing international JasTip?

Running a JasTip (consignment service) can be an additional income from the price difference or commission while also enjoying a trip abroad.

3. What are the risks of doing international JasTip?

Possible risks include delayed shipping, lost goods, fraud from either the buyer or seller, and issues with customs.