Key dynamics within the Indonesia e-commerce industry

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The trend seems global in terms of drivers which deeply impact the e-commerce industry. Respectively we have: Rise of cheap smartphones and tablets coupled with the presence of innovative payment solutions; different business models; convenience offered by online retail coupled with attractive discounts offered by online retailers; Messenger groups and social media.
The Indonesia e-commerce industry is experiencing these realities including the increasing excitements from women to purchase online. 

According to Research and Markets, the presence of liberal government legislations is supplementing the expansion of e-commerce in the country. 

The Industry is at its nascent stage and more players are entering the market with different business models to tap the major share of customer base. 

The market research report titled “Indonesia E-Commerce Market Outlook to 2019’’ indicates that, B2C retail in Indonesian archipelago has been capital intensive and margins have been achieved majorly through economies of scale.

Online retail is expected to drive consolidation in B2C space in the coming years in the Indonesian e-commerce market due to continuous influx of capital in B2C market by firms such as Lazada, Zalora, Bhinneka, Tokopedia, Blibli and others.

The market is also witnessing a rise in the number of new local wholesalers selling products online. Tokopedia, Rakutan, Blibli and Lazada are the major online retail firms in Indonesia apart from Zalora, E-Bay and Amazon. These firms not only provide better online payment facilities but also easy to use mobile applications.
Main competitors in the online retail market in the Indonesia include Amazon, MotihariMall.com, Blanja and Bhinneka, Zalora and Blibli.