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Indonesia's E-Commerce Perspective in 2019

Indonesia's E-Commerce Perspective in 2019

According to Google and Temasek Report, the Indonesia digital economic growth set to reach US$100 billion in the next six years, thanks to penetrations from e-commerce, ride-hailing, online travel, and online media. However, the e-commerce industry has shown its significant growth since 2018, as there are money transactions worth US$27 billion which has been rotated through an online platform. As a result, the promising digital economic appear as a step stone, as e-commerce players in the country see a long-term business here in Indonesia.

There are several aspects that make e-commerce as a promising business, namely:

1. Player Competition
This year several new players will try their luck in the e-commerce industry. According to Dailysocial, there are eight new financing companies aim for local e-commerce. 

So that it is possible global players like Amazon or Walmart will expand to Indonesia throughout the year.

2. Products and E-Commerce Services
At first marketplace websites are contributed by electronics and fashion. But now the industry also presents digital products like internet voucher, online payment for household (electricity, water, social security), as well as bus or airplane ticket. Overall, e-commerce is providing broad product variants to serve their customers.

3. Payment Method
The massive migration to cashless began when transportation service providers introduced card prepaid balances to pay public transportation costs. There are at least three advantages that make many people turn to electronic money, which is easy to use, there are discounts, and no need to worry about the availability of change money.

4. Consumer Behavior
Google and Temasek revealed that as many as 94% of internet users in Indonesia came from smartphone users. And 68% of them are online shopping consumers who rely on smartphones to find information about products to buy. From data collected by Lazada and iPrice during Singles'Day campaign, smartphones and tablets become the best-selling products in Indonesia.

5. Marketing and Promotion
This year personal pattern of marketing (personalized marketing) to consumers will be a mainstay of more e-commerce players to maintain closeness with their consumers. Capitalizing on the analysis of data on user activity data in a range of periods, e-commerce actors present statistical content that is packaged creatively so that it is aligned with the characteristics and interests of users. Whether it's about favorite products, shopping styles, or other behaviors.

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