3 Challenges Facing Indonesian E-Commerce Startups
Indonesian e-commerce startups face three big challenges: crowded markets, community building and online shopping interaction. Here is how to prepare.
Many Indonesian startups arrive with enthusiastic ideas and want to climb to the top fast. E-commerce offers promising potential, and with 132.7 million of Indonesia's 265.4 million people being active internet users, it is no secret that the country has been seen as a hot market for years. Yet despite Indonesia's digital growth boom, making a profit by starting an e-commerce business is not easy. Many challenges await new Indonesian startups. If you own an online small or medium-sized business, careful preparation is a must.
Niching the market
You not only have to understand the competition, you also have to improve on what they do. The great ideas you have may already have been developed by those who came before you. To carve out a niche, you need to break your idea down into something with a narrower focus. That way, you cut the number of competitors down to a handful of companies that have more in common with you, which makes analyzing the market much easier.
Building a community
Fashion changes fast. Trends are unpredictable and even harder to value. That is why you should not spend a lot of time chasing new trends and should focus on productivity instead. Rather than getting caught up in the latest trend, it is far more valuable to grow a sense of togetherness. Like a neighborhood shop, an e-commerce business has to interact with customers, which lets them connect with your store online.
As the owner of an Indonesian e-commerce startup, you need to realize that most of the country's people actively use various social media. People like to share their experiences with others. That kind of interaction leads to referrals, and these ultimately translate into promotion. All of this can help you build identity and credibility.
Shopping interaction
Experiencing a service or product in person can make or break a sale, and that experience is lost on customers when your store is online. The biggest feature of online shopping can also turn into its most crippling challenge. So make sure your website shows as many images and as much descriptive information as possible to make the shopping experience more immersive.
You need to pay special attention to size charts, product reviews, and even SKUs. Note that after-sales customer support must be very strong and well organized. Things like these do a lot to build customer confidence in their decision to buy your product.
Last but not least, hiring the right people is a key factor in running a startup-based e-commerce business in Indonesia, especially if you work within tight budget guidelines.
