How to start selling online in Indonesia


October 16, 2020
7 MIN READ
Vinculum
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Today online business is so prevalent and happens to be the most convenient method for buying and selling goods. As is in other parts of the world, Online sales volume increased in Indonesia as well. The online business has mushroomed in every corner of the world based on the demand for various products increased exponentially over the years.

The sellers and manufacturers are capitalizing on the burgeoning demand for the various categories of individuals. The Indonesian economy is promoting people to open up avenues for customers by expanding the online selling option.

There has been a remarkable increase in online shoppers in 2020, from 1.32bn in 2014 to 2.05bn in 2020. The figures above clearly state the craze and the opportunities we all are bestowed. Nearly 18% of people who are between 25-54 are the ones to buy items online anywhere between 6-10 times in 3 months & another 18-20% of people who buy more often.

Before venturing into any new business, a proper study of the market and devising a strategy is indispensable. Here are few steps which you may look at before selling online in Indonesia.

Analyse the market

To improve your online existence you must have clarity before venturing into it.

  • To launch a service or a business, an analysis of the market is essential. Understand the reach of your business, to start selling.
  • Foremost is to make a thorough study and learn what your competitors are offering, what is their reach, and other strategies.
  • Analyze your market, preferences of your target customers, how better you can approach them online.
  • You must learn the strategies to please your customers and how well to retain them.
  • The analysis of the market will make you understand the potential buyers, their needs, their problems, and their preferences.

What products do you want to sell?

Based on the analysis and study of the market, you would have understood which product or services have great demand. With the availability of resources, facilities, ensure the products reach the end-users. The connection you create with the clients will enable us to understand the requirements of them.

One must also see through that there is a proper warehouse facility until the goods sold, what kind of inventory method to opt, and other shipping services.

How to sell your products?

After studying the market, learned the expectations of the target customers, now where would an individual or an organization want to sell the goods?

If you are already selling products to end-users, think of new ways like:

Move the physical store to an online store

It is a safe idea to move the physical store to an online store where the sales will be happening from both the stores. Customers from the physical store can also buy from an online store without having to visit the store.

If you are a new seller, pick from the market analysis those products need to be sold and attract your customers by trying to give out some benefits.

Empathize your target audience

Whatever is the business, always ensure you are reading the minds of your target users, means you have cracked it right. If the business owners empathize and give products expected of the clients, there you have touched your clients. You may announce some discounts online for loyal customers, or you may provide offers to customers.

The market analysis will take care of the problem the customers are facing, try to improvise the supply, or start afresh with an innovative approach.

If the business has convinced the customer, now the next step is to retain the customer. One must make sure the products chosen should not face any hindrance while shipping. The procurement of goods or the business is also resorting to manufacturing the goods is a concern.

Buy or manufacture?

Well, you have learned the market, decided about what to offer your customers, you have decided where to reach out to your target audience. If you plan to buy the commodities from other suppliers and sell them on your online store, a supplier is essential is crucial.

You may have to look into shipping while opting for a supplier. The purchased goods have to be shipped and reach your destination.

If you opt for manufacturing the products and take them to the customers, then manufacturing costs, profit margin, and operations costs have to be taken care of. These products also have to be stored hence, the warehouse is indispensable.

In any case, there are benefits and detriments to being handled:

Dropshipping

The goods are bought from a supplier and sold online.

Benefits:

  • No loss incurred in terms of manufacturing the products
  • No warehouse hiccups
  • Overhead costs are minimal
  • Suppliers will take care of shipping and returns of the products

Detriments:

  • The profit margin is less
  • The quality of the products you sell through the online store is not in your control

Manufacture

When you manufacture the products and put up for sale on your marketplace.

Benefits:

  • Operation costs are minimal
  • Assurance for the quality

Detriments:

  • Production units costs have to be borne, which are huge
  • Products research, planning, designing for manufacturing a product

Where to sell your products?

There are two ways to market your products

eCommerce site

eCommerce websites are the easiest choice to start selling your products if you are relatively new to the market. By entering a few details and setting up of your seller account is all set to go. The digital explosion and the growing population in Indonesia have led to many eCommerce websites.

The top 5 eCommerce websites are Tokopedia; Shoppee Indonesia; Bukalapak, Lazada Indonesia; Blibli.

Set up a Web store

There are many platforms available to set up a Web store through which you can reach your customers. These platforms help the Web store owners to set it up and also host in their server. The hiccup of technical glitches is to be best avoided through this platform developers. You may have to provide some details, and the product ranges available with you, then you can launch it.

Sell on both the channel

It is wise to opt for multiple channels to set up a business, and the income earned through various channels. The business is more likely to generate high revenue when you sell products through an eCommerce site and Web store.

Legal terms and conditions of online business

Ensure you have adhered to the legal formalities and all the documents to be submitted:

License to conduct business online

It is mandatory to procure a license to conduct business online. Legal authorization of your business is imperative to sell your products digitally.

Copyrights, Trademarks

The property rights have to be dealt with diligently to avoid legal issues arising in the future. Give credit to those matters about others and at the same time do let anyone take away your efforts.

The end users are spread across the globe when your products are available online. So, your products and the brand have to be promoted. The web stores and eCommerce web sites are the best possible way to reach out to the world.

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