Although the Indonesian e-commerce market is very attractive, there are several challenges that every seller needs to pay attention to.
1. Chaotic logistics
Indonesia is an archipelago country with a land area of 1.9 million square kilometers consisting of thousands of islands. Undoubtedly, such geographical features have brought great challenges to the logistics field. At least the delivery of goods from western to eastern Indonesia is extremely difficult. Sellers who import goods from overseas have also experienced the chaos of logistics. The problems often encountered in logistics are: narrow distribution chains, long stays of goods at ports, and complicated customs procedures. Postage is one of the important factors that determine consumer purchases. Sellers, mainly small and medium-sized enterprises, mainly use the strategy of free shipping promotion to deal with the postage problem. The cost of postage is added to the price of the product. Consumers often think that “free shipping” exceeds their expectations. So this is a method worth learning from.
2. Imperfect payment system
Compared with other Southeast Asian countries, Indonesian consumers have relatively low financial literacy and low credit card usage. Only 36% of people have bank accounts. Under such circumstances, cash on delivery has undoubtedly become the most popular payment method.