More than ten percent of the population of Indonesia which consists of about two seventy million people are believed to online shop and this is promoted with the income rise and the penetration of the Internet which is going to speed up the whole process of online shopping in the country. A report says that by the year 2025, the e-commerce market will be worth about fifty-three billion dollars and another report by the company Mckinsey says that in about another three years, Indonesia will have forty-four million online commerce shoppers which would be worth about fifty-five to sixty-five billion. Also, the recent decision made by the Indonesian government to withdraw the implementation of the regulation that used to tax e-commerce transactions now is paving the way for the country to become one of the fastest-growing e-commerce countries.

So, what are the five reasons that make Indonesia the fastest growing ecommerce country?

  • Indonesia follows the mobile first method.

The e-markets of Indonesia believes in providing mobile-first platforms for the retail of goods. This means that this platform allows users and retailers to use their mobiles to their advantage and also allows flexibility. Rather than focusing on the desktop platform, they focus on the mobile platform, and then the desktop platform. In other countries, it is usually done the other way round. This is done because many of us browse through our smartphones, and with the rise of smartphones and online shopping apps, many people prefer shopping through their mobiles rather than their desktop, and online shopping is usually not done unless we were already browsing something else or working on the desktop. The mobile-first platform also helps in the easier and much-simplified entry of the users in the Indonesian e-commerce markets and helps the start-ups in having the flexibility of what they want to retail and sell, the audience they want as a customer and all this through mobile apps only.

  • Blooming and growing with multiple entrants.

Indonesia’s e-commerce markets consist of independent small business owners who retail consumer packaged goods, which is better known as CPGs, in order to survive. This is because the fragmented trade grows twice as slow as the e-commerce model, and this in turn, forces these small business owners to sell their goods on the e-commerce platform. Also, Indonesia does not rely only on mass retailers to guide them when it comes to their purchases, which again helps these small business owners to maintain their space in the e-commerce market. There are many business firms that own some of the best ecommerce sites in Indonesia. This helps them in creating a market impact and any business owner can do this. But this is fairly uncommon in other countries and is not seen much in various other Asian countries.

  • Online payments and more.

Be it Indonesian customers and consumers, or be it any other country’s consumer, everyone is wary of online payments. So, many of these e-commerce transactions allow either bank transfer of money or cash on delivery which in the long run, to be honesty, limits the e-commerce growth because of all the lost transactions that could have been made. Indonesians spend about ten percent annually and growing, which means that the option of cash on delivery is not going to last long. This also allows retailers who own small or big businesses to grow and allows them to optimize their business efficiently.

  • Allows consumers to access consumer packaged goods to rural areas.

A lot of cities in Indonesia are underdeveloped because of the lack of infrastructure and a strong government. But with the help of the rising e-commerce popularity, this helps the consumers in overcoming this challenge and allows them to purchase the consumer goods that were not available to them previously, and also to where they live. It helps them locate goods that were hard to source or find and can be ordered through their phone. We often mistake that people living in the rural areas do not need a phone or have much use of a phone with internet, but in the country Indonesia, more than one-third of the consumers are from rural areas.

  • Social media conversions.

A lot of popular ecommerce retail stores have social media profiles that are often linked to their website or app. So, usually when a user searched for a particular good, because of the social media algorithm, often similar products or e-commerce stores that retail those goods are often recommended to the user and this promotes and encourages the growth of e-commerce growth.

These five reasons are why Indonesia is the fastest-growing e-commerce country. They have implemented these and are growing bigger and faster in the domain of e-commerce.