Indonesia’s e-commerce market offers huge potential with some 31.65 million e-commerce users to date and an additional 22.24 million users expected to be shopping online by 2022. However, that does not mean that you should limit your online shop and e-commerce business to Indonesia alone; there is a big wide world out there full of customers waiting for your products.
Cross border e-commerce is on the rise and in November 2018, Economic ministers from the ASEAN came together to sign the ‘ASEAN Agreement on E-commerce’ to facilitate regional e-commerce transactions. E-commerce in ASEAN is expected to grow at a 14% compound annual growth rate over the next five years, a rate of growth equalled only by India. In contrast, China, the world’s largest e-commerce market, is predicted to grow at only 4%.
So how do you take advantage of this growth and get international customers for your online shop in Indonesia?
1. Do your Research
First off, you need to do some research on your target markets and establish where your products can be competitive in terms of demand but be sure to factor in shipping delivery costs from Indonesia. Research which markets are the biggest purchasers of your product category and keep in mind that smaller countries are much more likely to order a product from abroad. Look at what are the best-selling products in your product category for your target market and see where you can establish a niche while also identifying potential barriers to entry such as customs regulations, national standard requirements etc.
2. Set Up International Delivery Options
An important part of getting international customers for your online store is to offer international delivery options that are reliable and cost competitive. Before selling to international customers, speak to your courier delivery provider and understand their international delivery policies and pricing from Indonesia. Calculate the pricing for delivering your product to your various target markets to factor this into your pricing and display this clearly to your potential international customers. Some markets may prove more cost effective than others so be sure to include this into your market research.
JET express offers a variety of international delivery options to its customers to support you in growing your online shop or e-commerce business through cost effective package delivery rates.
3. Offer Different Payment Gateways
Thinking about how your new international customers are going to pay for their purchases and international deliveries from your online store is important as without having the correct payment methods available, new customers can abandon their orders as they may not feel the payment method is secure. Be sure to research what are the preferred payment methods in your selected target markets be it Paypal, Google Pay, Direct Debit, bank transfer or online transfer. Whichever payment method you choose, ensure that it offers buyer protection and stringent online security measures. In this regard, Paypal offers you the widest possible reach without having to set up multiple merchant accounts as you can accept payment in over 200 countries and in 25 different currencies.
4. Ride the Wave
Indonesia is becoming more widely known in the global market for product categories ranging from rattan furniture and handicrafts to electronics, halal cosmetics, food items and fashion. Ride this wave of interest with your product offering to get international customers for your online store. Look at Indonesian fashion designers such as Peggy Hartanto that have started to become big names abroad or Sariwangi for soft drinks, Pepsodent or Pond’s for personal care and Bimoli for dairy products. Appreciation for Indonesian brands and Indonesian made products is on the rise globally so make sure that you are part of it.
If the ASEAN is your main target market for international customers for your online shop in Indonesia, then stay tuned as talks are underway to create a regionally connected real time payment gateway for online transactions involving the main players such as Singapore’s PayNow and Thailand’s PromptPay.
5. Optimise your Online Store’s Website
Website optimization and localisation are vitally important for entering new international markets for your online shop or e-commerce business. Keep in mind the local language of your target market and set up automatic browser language detection on your website to make available a locally translated version of specific landing pages and product descriptions. Remember; take the time to professionally translate your content and do not rely on programs such as Google translate as this could end up harming your image in front of potential international customers.
Other ways to build your online store’s credentials for international customers are including information about your capacity to fulfil international delivery orders, include a currency conversion tool for your prices, to translate any how-to videos or product tutorials, include an FAQ section specifically related to international orders and to feature testimonials from satisfied customers.
6. Join an Existing E-commerce Platform
As part of your market research into your target markets for international customers for your online store in Indonesia, be sure to look into existing online market places for your products in your target markets. Just like e-commerce platforms in Indonesia such as Lazada, Bukalapak and Tokopedia, you need to get familiar with the buying habits of e-commerce consumers internationally and see how your products can be sold effectively in these market places, what their policies are and of course when are the key times during the year for promotions and discounts such as national holidays.
Successfully selling your products in international markets starts with good research to make sure that your online shop and products can compete effectively. Once you have established your market entry strategy, be sure to use a reliable international courier partner who has experience in dealing with international package deliveries and offers online tracking and cost competitive rates. JET Express has extensive experience in international package delivery and is ready to serve you and be part of your online store’s international growth strategy.