The Best E-commerce Platforms for Small Businesses in Indonesia

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The Indonesian e-commerce market presents a flourishing landscape of opportunities fuelled by growth and a diverse customer base. With a market value of approximately $40 billion, Indonesia is one of Southeast Asia’s largest e-commerce markets. 

One of the main reasons behind the e-commerce industry’s growth is Indonesia’s increasing internet penetration. As of 2021, the country recorded 196 million internet users, which is 71% of the Indonesian population. Moreover, marketplaces like Shopee, and Lazada have also emerged as central players in the Indonesian e-commerce ecosystem. 

With an exponentially growing market, the country is expected to record a compound annual growth rate of 10.4% by 2027. Online e-commerce platforms in Indonesia may expect an increase in global e-commerce sales over the next years. 

Moreover, a number of local wholesalers dominate Indonesia’s online retailing. Some of the top online e-commerce marketplace platforms in Indonesia are Blibli.com, Tokopedia.com, Lazada.com, and Bukalapak.com. 

Let’s learn more about the Indonesian e-commerce market by referring to the following aspects: 

Online retailers in Indonesia

Due to consumer behavior change during the COVID-19, Indonesia’s total retail e-commerce market experienced an increase of almost 20 billion dollars in 2021 compared to 2020.

60% of sales in Indonesia are done through e-commerce. While offline women retailers generate only 15% of revenue, online women retailers generate 35% of revenue. 

A few contributors to the Indonesian e-commerce landscape play a significant role in sustaining the marketplace. The largest market that accounts for 27.1% of the Indonesian e-commerce revenue is Food & Personal Care, followed by Electronics & Media with 26.2% of the revenue. Toys, Hobby & DIY come next with 20.7%. Fashion accounts for 15.7%, while the remaining 10.3% goes to Furniture & Appliances.

Monthly visits to online retailers in Indonesia

With an increase in the e-commerce market size, monthly visits to Indonesian online retail stores have also significantly surged. 

As per Statista reports, in the second quarter of 2022, there were approximately 19.74 million monthly web visits to Blibli, one of the top e-commerce platforms in Indonesia. At the same time, Orami was counted as one of the most visited B2C e-commerce platforms for fashion, with monthly web visits of approximately 16.18 million. Statista also discovered that the e-commerce platform Shopee witnessed 124.9 million monthly visits in Indonesia in 2023. 

Popularity of mobile devices and digital payments in Indonesia

The usage of mobile phones has risen in the country, and that, in turn, has given the path to an increase in digital payments. In most cases, consumers use their mobile devices as it is more convenient and handy. Indonesia has taken over digital payment via various platforms such as credit cards, debit cards, e-money, e-wallets, net banking, etc. According to Statista, digital payment users in the FinTech market in Indonesia may continue to increase by up to 50.8 million users between 2023 and 2027. 

Foreign companies operating in the Indonesian e-commerce market

Some international merchants, like Alibaba Group Holdings and the Trancent Group, co-exist in the Indonesian e-commerce market along with the local ones. According to International Trade Administration, some of the leading sectors for US exports and investments in Indonesia are IT, Financial Services, Agriculture, Energy, etc. 

The Best E-commerce Platforms for Small Businesses in Indonesia

E-commerce platforms are head-turners for businesses to establish their feet in the marketplace. Here is a curated list of e-commerce platforms in Indonesia that give the best experiences:  

Shopee

Notwithstanding its young age, Shopee is liable to dominate the e-commerce market in Indonesia. 

Shopee is a renowned Indonesian online shopping platform known for its Gratis Ongkir Rp 0, i.e., Free Shipping Rp 0. It allows customers to receive free shipping without the need to make a minimum purchase. This feature fascinated consumers and, in turn, helped the platform gain prominence in the market quickly, as Indonesian logistics are often expensive. 

In addition, Shopee uses ShopeePay and ShopeeFood for online payment and food delivery services. These are substantially adding to the platform’s ecosystem.

Tokopedia

Tokopedia, an Indonesian unicorn founded in 2009, provides a wide range of services. It includes hotel bookings, online retail, digital payments, events ticketing, subscription plans, ticket sales portals for flights and trains, etc.

Alongside this, Tokopedia has service specifications for specific users. For instance, Tokopedia Salam is an extended Tokopedia app product line catering to Muslim users by selling fashion items, praying goods, etc. It also manages zakat payments which are mandatory Muslim donations. 

In 2021, Tokopedia merged with Gojek, Indonesia’s ride-hailing service. They worked together to establish a new holding company, GoTo. GoTo, launched in March 2022, currently occupies a position on Jakarta Stock Exchange. 

Needless to say, Tokopedia and Shopee are currently the top platforms for e-commerce in Indonesia.

Blibli

Blibli was founded in 2011 and backed by the Djarum Group. It is a source of household and lifestyle goods focusing on B2B, B2C, and B2B2C customer segments. The country benefitted from its facilities as it provides a top-notch B2B2C, B2C, and B2B e-commerce platform experience.

Blibli is an omnichannel platform in Indonesia that furnishes consumers with top-notch services. For instance, it has Blibli Click & Collect that allows users to opt for online and offline shopping, BliPay enables digital payment methods, and Blibli Paylater gives expanded access to individual credit facilities.

Lazada

Lazada, founded in 2012, is an international e-commerce company that has established itself in the Southeast Asian region. Alibaba’s technology backs this ecommerce website in Indonesia, catering to consumers in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

Lazada has LazMall, which is a virtual mall connecting shoppers to over 32,000 brands. This initiative breeds standards in online retailing with 100% product authenticity and better customer service.

Bukalapak

Bukalapak is a B2B e-commerce platform in Indonesia that sources physical, virtual, logistic, and financial products. This company helps mom-and-pop small businesses in Indonesia embark on the online marketplace. 

Bukalapak is slightly different from Tokopedia and Shopee, wherein it performs the role of a third-party intermediary to support the transactions between retailers and consumers.

Bhinneka

Found in 1993, it is a veteran in the Indonesian e-commerce platforms list. While competing platforms like Tokopedia, Bukalapak, Lazada, etc., jostled to significantly experience growth, Bhinneka kept focusing on B2B collaborations. 

Initially, the platform started with gadgets and consumer electronics, but with time it expanded its sources into groceries, healthcare products, and industrial equipment. 

Orami

Orami was founded in 2016 after the two women-focused e-commerce platforms Moxy and Bilna merged. The company is the largest all-in-one e-commerce platform that focuses on parent-centric technology. This online shop in Indonesia simplifies parenting by supporting a community, guides, and marketplace to cater to every parent’s needs.

The company launched an app called Orami Parenting for parents or users. The app discusses topics on parenting, online consultation classes, and guides related to parenting. 

Ralali 

Ralali is a B2B e-commerce platform in Indonesia that assists micro to medium enterprises to grow and sustain their services in the business world. In other terms, Ralali offers an on-demand workforce to businesses by virtue of its app. 

It is a parent company of Ralali Logistics and Ralali Financial. Thus, it provides financing and logistics solutions by establishing partnerships with FinTech companies, transport specialists, and banks.

Sociolla

Sociolla is a leading beauty e-commerce platform in the country. It aims to build a beauty ecosystem entirely based on a digital platform. 

Sociolla is mindful of plastic pollution and carries out its services through a zero bubble wrap policy. It rather uses eco-friendly materials for wrapping products. It is taking the initiative to launch the Sukin x Sociolla Recycle Station, a nation-scale recycling program. 

Commencing its services in 2015, Sociolla has currently expanded to 48 stores across Indonesia. Socio Bella, the parent company of Sociolla, now has over 30 million users. 

Zalora

Being one of Asia’s most rapidly growing online fashion retailers, Zalora currently carries over 30,000 products. It brings dimensions in all aspects of fashion to the Indonesian market by collaborating with more than 500 local and international brands.

The factor that makes Zalora stand out among its competitors is its supply chain. Zalora uses a broad network of logistics that enables services in a swift manner, even in remote areas. Their strategic Regional Fulfillment Centres further boost their services by resolving customer care issues. 

Shopify

Shopify is potentially the best SaaS ( Software-as-a-Service ) e-commerce platform for small businesses in Indonesia. Its robust platform implements complementary tools and features to enable multichannel selling. Shopify takes care of your business in all aspects. For instance, Shop Pay looks after payment methods with low transaction fees, Shopify POS operates in-person sales, and Shopify Fulfillment assists in getting hands on the products more conveniently.

Shopify’s mobile app provides a consistent experience managing your online business on your mobile device. It uses various features to fulfill orders by adding products, updating in real-time and inventory sales, etc. 

Best for sales features

Shopify is the best e-commerce website in the indonesian market for sales features. The platform provides a smooth experience that would help to upscale businesses.

Best for SEO and marketing

For SEO and Marketing, Shopee and Tokopedia are the two leading platforms for online shopping in Indonesia. They are the most visited e-commerce and shopping websites in Indonesia.

Best for multichannel selling

If you desire to establish your business through multichannel selling, you should consider Blibli, as it provides a wide range of facilities to consumers while maintaining its quality services. 

Best value for money

Shopee is a good platform that is engaging and provides good services that are worth your money. It has some unique features that make it valuable in the e-commerce marketplace. 

Best for ease of use

If you are looking for an e-commerce platform in Indonesia that is user-friendly, you should opt for Lazada. It enhances its platforms by categorizing the infrastructure to provide a better experience. 

Conclusion 

E-commerce has become an integral part of the Indonesian economy. There are several potential e-commerce platforms in Indonesia that are liable to take the e-commerce market in Indonesia to a notch higher. Hence, choosing the right platform that can give wings to your business is crucial. 

Before venturing into the business world in full swing, you can opt for free trials from the above-mentioned e-commerce platform list. Once you are satisfied with your profits, you can invest in premium membership policies to scale your business up.

FAQs

What is the most used e-commerce platform in Indonesia? 

The most used and visited e-commerce platform in Indonesia is Shopee. 

Which online platform is best for small businesses? 

Small business wonders can opt for Shopify. 

What is the biggest B2B e-commerce in Indonesia? 

Homewerk is the biggest B2B e-commerce in Indonesia. 

What is the demand for e-commerce in Indonesia? 

Indonesian’s e-commerce market witnessed significant growth in 2021 as it occupied the ninth position in the largest e-commerce sectors in the world. 

What are the top 3 social media platforms in Indonesia? 

The top 3 social media platforms in Indonesia are: 

  • Facebook 
  • Instagram 
  • Twitter

Why is e-commerce good for small businesses? 

E-commerce is a prudent choice for small businesses as the profit easily compensates for the cost of designing and building an e-store infrastructure. 

What are the digital platforms in Indonesia? 

There are several digital platforms in Indonesia. They can be categorized as:

  • Media sharing platforms
  • Social media platforms
  • Knowledge-based platforms
  • Service-based platforms

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