Observing the Behavior of Indonesian Online Consumers and 2018 Prediction

Looking Back on 2017

Throughout 2017, the technology development, especially in relation to e-commerce, has been growing rapidly. In Indonesia, for example, the interest for online shopping is increasing and the number keeps getting higher.
As a ‘shopping search engine and price comparison platform’ that operates in Indonesia, Priceza.co.id has collected data about the behavior of online shopping of Indonesian consumers that summarized from 1 st of January to 31 st of December 2017, and the findings are quite interesting.

The most popular categories

According to the data from E-commerce IQ, 24.74 million people (19%) of the total population of Indonesia are online shoppers. Meanwhile, according to the data gathered internally by Priceza,
there are more than 4.5 million visits and active users on Priceza.co.id monthly. These data show that the interest of Indonesian people to do online shopping is quite large.
Clothes and fashion accessories are the most popular categories in Indonesia throughout 2017, with a total of 27% of total clicks received. The figure is followed by the category of automotive
(16%) and smartphone (12%). Meanwhile, based on the gender, female users have less portion, which is 35.5% compared to male users with 64.5%.

Analyzing three most popular categories further, there is a shopping pattern that we could know. The Indonesian consumers usually visit Priceza website and application to find a certain product or brand and then they don’t directly go to the online store to purchase, but they compare them with similar products or brands first.
Indonesian consumers spend much time on the behavior of comparing prices and products before deciding to purchase. According to the data from Priceza, the average amount of money
spent by the consumers in one online transaction is IDR 820,000. CEO and Co-Founder of Priceza Group, Thanawat Malabuppha adds that the e-commerce trend in 2018 would be heading to

User Generated Content (UGC), that more and less is related to the Indonesian consumers’ behavior which loves to compare. As an example, reading a review or testimonial from a real user would affect one’s purchase decision. The data from Priceza shows that throughout 2017, there are various product reviews by the users. These reviews were created based on their experience while using the product they bought. At this point, there would be a trust from the potential consumer which will end up into purchasing. According to the A/B test that has been conducted, the products with reviews have a higher number (57%) of click-through rate (CTR) compared to the products without any
review.

Online Shoppers in Indonesia

Seeing this fact, Priceza predicts that the number of online shoppers in Indonesia would not show any decrease in the short time. Instead, the chance to surpass the number in 2017
would be highly probable to happen.

Another concrete proof could be seen through the last event of ‘2017’s National Online Shopping Day’ (in Bahasa Indonesia: “Hari Belanja Online Nasional”, shortened as
“Harbolnas”). According to the CMO of Lazada Indonesia, Achmad Alkatiri, who also acted as the chairman of the committee, the event has exceeded 64% from its target.
Priceza, as a shopping search engine plans to develop Big Data in order to fulfill the needs of its users, as well as to create a satisfying online shopping experience, through easy searching and
comparison of product and price.
Other than that, the development of database is also important to give a report as accurate as possible to the online stores and partners. This would create a fair e-commerce ecosystem,
either for the buyer and the seller.

 

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By | 2018-02-28T11:01:45+00:00 February 26th, 2018|eCommerce Update|