Indonesia offers a huge e-commerce market to tap into, but once you have set up your online shop locally why not think regionally? The ASEAN is made up of 630 million potential customers and the e-commerce market is expected to reach $200 billion USD in value by 2025. Internet penetration is on the rise throughout the region as the middle class continued to expand and the ASEAN is undergoing an e-commerce ‘goldrush’ era of development. ASEAN consumers in markets such as Singapore are already well accustomed to purchasing items from abroad with two out of three people doing it once a year; Thais and Malaysians follow this with nearly every second person doing so (Google and Temasek Report). Competition in the ASEAN’s ecommerce sector is tight so read our top tips for getting ahead and establishing your online shop beyond Indonesia.
Starting an online shop in Indonesia is a great way to begin earning some extra income or indeed as a full-time job. It is easy to get started; you can begin selling your products through Facebook, Instagram, Whatsapp and other social media platforms as well as using e-commerce marketplaces and your own website. However, as Indonesia’s e-commerce sector becomes more competitive, your online shop needs to be able to stand out against competition from other online stores as well as the growing strength of Indonesia’s biggest e-commerce players. So how do you compete? Well the short answer is that rather than trying to go head to head, you need to find a way to co-exist with Indonesia’s e-commerce behemoths and identify your niche through offering a personalized service that your customers will not find elsewhere.
Earlier this year, the Indonesian Ministry of Finance announced that it was cancelling its plans to go ahead with levying new tax regulations on companies involved in Indonesia’s e-commerce sector. The regulation that was due to come into effect on 1st April 2019 was regarded as potentially stifling Indonesia’s burgeoning e-commerce industry, specifically for MSMEs, and thus its revoking has been widely welcomed. However, the Jokowi government is keen to increase tax revenues in the country and e-commerce will continue to be on the radar as the sector grows and becomes more robust. The Ministry of Finance also announced that more preparation was needed before the regulations are implemented, so online shop owners need to be prepared for the futures should this regulation come into effect.
Selling your products through an online marketplace in Indonesia is one of the best ways to reach millions of online customers. Indonesia now has numerous e-commerce marketplaces available such as Lazada, Tokopedia, Bukalapak, Blibli, Elevenia and Bhinneka. Online marketplaces have become the most popular way for Indonesian consumers to buy online with the top 6 websites receiving 10 million visitors per month. That is good news for online store owners looking to reach new customers without having to invest heavily in their own website and marketing, but it also brings you head to head with your competition. That means that to succeed as an online store and sell through an e-commerce marketplace in Indonesia, you need to make sure that you stand out from the crowd.
Right now is a better time than ever to have an online e-commerce business in Indonesia. The volume of e-commerce sales in the country is outstripping that of neighbouring countries with Indonesia’s e-commerce Gross Merchandise Value reaching $12.2 billion USD in 2018 compared with $3 billion in Thailand and $2 billion in Malaysia (Temasek 2018 e-Conomy SEA report).
The Indonesian ecommerce market was valued at $8 billion USD in 2017 is estimated to be worth $55-65 billion USD in 2022. Today the country has around 30 million online shoppers which is only 15% of the total potential as well as 5% of total national retail sales which means that shopping online is big business. Indonesia’s young and tech savvy population are shopping online for everything from clothes to traditional snacks as more and more industries offer an online sales channel and seek to offer that feeling of instant sales gratification through fast delivery.
Reaching the point of financial security is a complex process that takes time, effort, and sacrifices. Building a second income or multiple streams of income can be the major catalyst for you to achieve your financial goals whether for retirement or education or even for long-term financial security.
Many local and international e-commerce marketplace companies have opened up shop in Indonesia; providing platforms with which local online shop owners can expand their businesses. However, with all this choice, which ones should you be using to maximise your online sales and profits? Continue reading for our e-commerce marketplace comparison and our recommendations for selecting the best options for you and your store.
Boosting traffic and getting the right visitors is key in expanding your online shop’s customer base. Many of you will think that lot of investment is required to drive traffic to your online shop, but there is plenty you can do without spending any money. Read on to find out our top ten free tips and tricks to raise incoming traffic to your online business.
Indonesia’s National Online Shopping Day, or Hari Belanja Online Nasional (Harbolnas), is the country’s biggest online shopping extravaganza; celebrated annually on the 12th December. While the event has been more commonly associated with Indonesia’s largest e-commerce players, now is the time for independent online shops to get in on the action and offer sweet deals to their customers. Harbolnas is big business for online shops, but what are the best ways to attract customers and make sure that you offer the best deals without harming your bottom line? Read on for the top tips for a successful Harbolnas for your online shop.