A key driver of growth in e-commerce during the COVID-19 pandemic has been the rise of the pay later option, essentially a form of consumer credit. Many Indonesians favour paying for their purchases in instalments, and this is generally either because they prefer to clear their dues at the end of each month or because they are attempting to manage their tight cashflow.
The COVID-19 pandemic also drove an increase in e-commerce sales in 2020 due to the nature of the virus and the fear of contagion associated with crowds and store-based retailing. Many consumers who had never before used e-commerce platforms turned to digital shopping platforms during the COVID-19 pandemic for the first time simply to purchase essential products as they did not want to expose themselves to potential COVID-19 infection in brick and mortar stores.
The strong growth recorded in e-commerce towards the end of the review period was driven primarily by the fact that Indonesia’s population is becoming more connected. The strong increases being seen in access to the internet among the country’s population are the result of infrastructure development and the falling cost of internet connections, including both fixed line and mobile connections.
Many companies have faced considerably challenges in adapting to the sudden demand for e-commerce services during the COVID-19 pandemic. The pandemic hit small and medium enterprises particularly hard as these companies had fewer resources and financial support available to them to facilitate the switch from offline sales to online sales in 2020.
In Indonesia, there are already a number of important players in e-commerce offering a variety of products from a number of industries including transport e-commerce, health and wellbeing e-commerce, retailing e-commerce, and foodservice e-commerce. However, e-commerce players are expected to struggle to build a more mature e-commerce ecosystem over the forecast period.
The popularity of e-money and e-wallets will continue to rise among the population of Indonesia over the forecast period. In turn, the growing number of consumers interested in digital payment apps will spur strong growth in e-commerce.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page