Indonesia’s E-commerce Growth
According to GlobalWebIndex, Indonesia has the highest rate of e-commerce use than any other country in the world and because of this, many entrepreneurs find that Indonesia has a good and promising success due to its market consumers. They start building their own start-up companies and many of them are an e-commerce based start-up. According to the Ministry of Communication and Information of Indonesia, e-commerce in Indonesia has grown up to 78 percent in 2019, the highest growth rate in the world.
What is E-commerce?
What exactly is e-commerce? Ecommerce is short for electronic commerce or internet commerce. The buying and selling of goods or services using the internet, the money transaction is mostly done virtually as well (e-money or transfer). The growth of e-commerce itself is not only with local startup companies but also foreign e-commerce startup companies trying to compete to be the best leading and most used e-commerce in Indonesia. So, here is some more information regarding Indonesia’s e-commerce growth until 2020.
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The E-commerce Types in Indonesia
There are four main types of e-commerce models that are known all around the world. These types of e-commerce are transactions that are known to be done by two stakeholders, consumers, and businesses. Ecommerce also have different forms of e-commerce, whether its a form of product or services.
The first type is Business to Consumer (B2C), which is like an online shopping mall where a business sells stuff or services to an individual consumer. Second, Business to business (B2B), is where a business sells stuff or services for the success of other businesses, for example, a financial company sells their software product that manages invoices to other companies. Third, consumer to consumer (C2C) is when a consumer sells stuff or services to their consumer, for example, a startup platform that allows people to sell their stuff. Last, consumer to business (C2B), when a consumer sells their products or services to a business, for example, a freelancer in a company.
In Indonesia, the most used type of e-commerce is business to consumer (B2C), that being said, companies like Traveloka, Lazada, and Shopee has been connecting businesses to consumers, making things a lot easier. It is the most used type because both sides have great advantages due to the large prospect sales or the broader market. The system and transaction of B2C are also much easier and takes less time, all it takes is a click on the screen. Next in line is Customer to Customer (C2C), platforms like Bukalapak, Tokopedia, and Kaskus allow anyone that has or doesn’t have a business to sell their goods to other people. Coming on the third place is Business to Business (B2B) and lastly Consumer to Business (C2B)
E-commerce Applications in Indonesia
1. Magento | Indonesia e-commerce
The first e-commerce on our list is an open-source type of e-commerce built in PHP. Magento makes up 30% of the total market. In 2019, Magento was officially purchased by Adobe.
2. Prestashop | Indonesia e-commerce
The second e-commerce on our list is open-source freemium. Written in PHP but also supports MySQL. This e-commerce was formed in 2007 in France.
3. Woocommerce: Indonesia e-commerce
The third Ecommerce in Indonesia on our list is an open-source plugin for WordPress. First launched in 2011, Woocommerce has quickly become popular due to its free and extensive customization. Now e-commerce is being used for businesses whether big or small.
This one uses a retail-point-of-sale system as their main e-commerce base. Shopify is headquartered in Ontario, Canada. Advertising, shipping and payment can be done through their feature.
This one is an online store management system. Opencart was first released to the public in 2010. Until May 2016, there were more than 300 thousand sites using its features. Opencart is written in PHP with a MySQL database and HTML components.
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This Ecommerce in Indonesia is again not only open-source but also a community-based project. Created in 2010 and released to the public in 2011. Written using PHP and also using the MySQL database.
This seventh option is a Ecommerce in Indonesia which can be used on any server that already has PHP and MySQL. From the name, it is clear that this e-commerce is open-source. The latest release is version 22.214.171.124. in 2017.
The final pick on our list is a multi-service e-commerce enabler in Indonesia. Sirclo can make almost any effort to achieve the professional standards it requires. They also provide consulting services for e-commerce strategies.
So, there you have a picture of the ecommerce growth in Indonesia. With this being said, many work opportunities are opened but many of the other occupations are not needed anymore too because they are being replaced by machines. People are slightly beginning to understand that they need extra skills to have prosperous work in the e-commerce industry. In years to come, Indonesia would be one of the leading countries in economic growth because of this.