The Development and Some E-Commerce Issues In Indonesia

Yasser Arafat Akhmad, CTO & Co-Founder, MyAcico.co.id & belisada.co.id

Yasser Arafat Akhmad, CTO & Co-Founder, MyAcico.co.id & belisada.co.id

Based on Badan Pusat Statistik – BPS Indonesia (Indonesia Central Bureau of Statistics), in the last 10 years e-commerce industry in Indonesia increased by 17 percent with reaching 26.2 million units of total number of businesses. By 2025, Indonesia has potential to dominate 52 percent of Asia potential market from all Southeast Asia e-commerce value. It is predicted that the value of e-commerce transactions will reach IDR 144 trillion by 2018, it increased from IDR 69.8 trillion in 2016 and IDR 25 trillion in 2014. The data indicates the magnitude of the potential of e-commerce, thus, it will create any opportunity for the new players to enter the e-commerce domain by offering variety products and services.

Along with the increasing number of e-commerce company, the level of competition among them is also increasing, especially for companies with the same type of product. The competition of e-commerce companies in Indonesia is not only between fellow local players but also with foreign companies. The advantages of local company are more familiar with market conditions, culture, and consumer behavior. In fact, this information can be proceed by marketing team to get the market insight and to create customized products and services according to consumers’ needs and desires.

Aside with identifying the culture, trends, behavior, desires, and needs of consumers, the competition between e-commerce companies can be won by providing better service; knowing self-ability and playing in appropriate markets especially for SMEs (small and medium enterprises), and for the new players who are just starting the online market with the goal in entering a larger market in the future; offer unique products and services.

Doing promotion is also one of the key to win the competition

There are several services that can be offered to the consumers, such as personalized product offer system in accordance to consumers’ needs and desires; making an attractive interface; a special program for a particular event or big day with discounts and/or coupons; price comparison; fast transaction processing from ordering to delivery of goods; diversified payment system according to customer's ability and habits; a diverse and rapid delivery system; supply of goods at competitive price; quality and authenticity of products offered; applications or technologies are easy to use wherever and whenever (by utilizing mobile applications beside of personal computer (PC) applications); ease of communication for complaints and/or inquiries from consumers regarding product and services offered; facilities for the return of damaged or non-order goods; guarantee against the offered product. To review the quality of company services and to design service improvements in the future, e-commerce company could initiate service survey to their consumers, meanwhile if the e-commerce company would like to understand the market trends, they can initiate market research conducted by other parties or company itself.

Network connections also need to be considered, thus, the flow of online traffic can run smoothly. Sophisticated technology usage, good networking, and data security is vital without diminishing other divisions. An ecommerce company needs to pay attention to their technology and the type of network they’re selected. In addition, the security of customer data stored and transaction must also get priority from the company, to prevent data hacking. Verification also needs to be applied to anticipate consumer’s fraud.

The human resources requirement is quite high, with diverse work areas, ranging from information technology, marketing, sales, human resources, logistics, etc. The lack of competent employee can be overcome by giving a comprehensive education about e-commerce business process to all e-commerce players, stakeholders, and all employee, both in formal and informal course. This kind of education may involve the government side and other related institutions. Training and welfare for employees need to be concerned. Prospering and fulfilling employees’ rights, and giving the proper training will be able to increase productivity that will give positive effect to the company.

Doing promotion is also one of the key to win the competition. In promotion, it is necessary to show the distinctive features and uniqueness of the company from the competitors and additional value that can be offered. It also can be realized by creating a unique and memorable ads by showing the company's characteristic by utilizing electronic media, print media, social media, billboards, and any suitable media. The promotion can be run by working with other parties in order to promote the website by putting your ads at public transportation, cinema, and other ATL media.