Spire discussed the best practice strategies to optimize customer experience for E-commerce users in Indonesia.

1. Logistics Experience for E-Commerce
Users in Indonesia
By Jeffrey Bahar, Deputy CEO Spire Research and Consulting
E-Commerce Logistics Summit
Keraton at the Plaza, March 8, 2016

2. Spire Research and Consulting

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We have 100 employees in ten full-service offices.
We serve Global Fortune 1000 firms, governments and other leading
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Spire Research and Consulting
The leading research-based consultancy in emerging markets

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GO-TO-MARKET
PLAYBOOKS

5. Background Information on e-
Commerce in Indonesia

6. Basic Diagram of e-Commerce
Image Source: Flexy (www.flexy.com.br)

7. Comparison of Several E-Commerce
Portals in Indonesia
Marketplace Dedicated Online Store
Lazada MatahariMall Tokopedia Bhinneka Berrybenka Zalora
Delivery Partners
LEX, First Logistics, TIKI,
RPX, JNE, NEX
Logistics, Pandu
Logistics
JNE, aCommerce Cahaya Logistik, First
Logistics, JNE, Pandu
Logistics, PT Pos
Indonesia, RPX, Tiki,
Wahana, SiCepat
Express, Go Kilat
JNE, TIKI JNE, RPX, aCommerce,
First Logistics, Ninja
Van, Berrybenka
Express
First Logistics, JNE,
RPX, Pandu Logistics,
PT Pos Indonesia
Delivery Cost
Free*
(For purchase from
same area & under
7kg)
Free Not Free
Free
(minimum purchase Rp
300,000)
Free*
(minimum purchase Rp
100,000)
Free*
(minimum purchase Rp
300,000)
Payment Options
Bank Transfer, Credit
Card, Internet Banking,
COD, Installment,
helloPay, Virtual
Account
Bank Transfer, Virtual
Account, Credit Card,
Cash on Delivery,
Installment
Credit Card, Mobile
Money, Bank Transfer,
Saldo Tokopedia, COD
Indomaret, Seven
Eleven, Installment
Bank Transfer (Virtual
Account), ATM
Payment, Internet
Banking, Credit Card,
Debit Card, e-Money,
QR Code Scan, FinPay,
COD
Bank Transfer, Internet
Banking, Credit Card,
COD, Indomaret
Bank Transfer, Credit
Card, COD,
Wallet/Store Credit,
Debit Card
O2O Support

8. Card-Based Payment & Smart Phones
Ownership and Payment Methods Used by Indonesia
Internet Users
77,752
105,828 110,891 114,895
15,092 16,043 16,227 16,440
27,433
38,319
52,211
69,451
2013 2014 2015 2016*
Debit and Credit Card Ownership and Active
Smartphone Users in Indonesia
Debit Card Credit Card Smartphone Users
1%
2.30%
2.70%
7%
24%
33%
67.40%
Mobile Money
Rekber
PayPal
Debit Card
Credit Card
Internet…
SMS Banking
Payment Methods Used by Indonesia
Internet User
Source: Bank Indonesia, Asosiasi Penyelenggara Jasa Internet Indonesia

9. E-Commerce User Experience in
Indonesia

10. Indonesia E-Commerce Buyer Demographic
Who is the buyer?
0
8.77
15.79
73.68
1.75
50-59 y.o.
40-49 y.o.
30-39 y.o.
20-29 y.o
> 20 y.o.
E-Commerce Buyer Based on Age (%)
45.61
54.39
Female
Male
E-Commerce Buyer Based on Gender (%)
Source: Spire Research and Consulting

11. Indonesia E-Commerce Buyer Demographic
Where to buy and what are bought?
4
2
2.7
7.6
9.6
15.9
17.2
20
20.7
5
4
4
4
22
12
18
15
20.5
Others
Automotive Accessories
Health Supplement
Sports and Entertainment
Books
Beauty Products
Electronics and Gadgets
Gaming Products and…
Fashion Products
Types of Products Bought via E-Commerce (%)
20
26.6 26.4 27
35
30.1
15.1
19.8
Marketplace Dedicated Online
Store
Social Media Trading Forum
Favorite Place for E-Shopping (%)
Q3 2015
Q1 2016
Source: Spire Research and Consulting

12. Indonesia E-Commerce Buyer Demographic
Purchasing from Abroad
4.8
9.6
13.5
15.4
16.3
18.3
22.1
Not interested with the products
Limited payment options
Worried over safe delivery
Worried over scam possibility
Worried over product quality
Long delivery time
Difficult Payment System
Worries Over Shopping from Abroad (%)
40.35
59.65
Never
Yes
E-Shopping Experience from Other
Countries (%)
Payment-related
Delivery-related
Source: Spire Research and Consulting

13. Indonesia E-Commerce Buyer Demographic
How Buyers Choose their Platform?
1
•Fast and
correct product
delivery
2 •Product
variation
3
•Satisfactory
customer
service
4 •Safe packaging
5 • More comfortable
(than offline
shopping)
6 • A flexible return
policy
7 • Can pay in
installment
8 •Ability to use
COD option
Payment-related
Delivery-related
Source: Spire Research and Consulting

14. Indonesia E-Commerce Buyer Demographic
Factors of importance from e-commerce product delivery
Ease to open
the wrappings
Display on the
Box
Items on the
box
(wrappings,
fillings)
Notification
During
Delivery
Product
Protection
During
Delivery
Right Address
in Delivery
Fast & Correct
Product
Delivery
Source: Spire Research and Consulting

15. Indonesia E-Commerce Buyer Demographic
Which courier service and delivery options are being chosen?
5.27%
1.75%
3.50%
8.77%
8.77%
10.53%
14.04%
45.61%
92.98%
Others
Wahana Express
Go-jek
Fedex
EMS
DHL
PT Pos Indonesia
TIKI
JNE
Courier Service Used for Online Shopping
64.91%
33.33%
1.75%
Chosen Delivery Options
Free or regular delivery Express delivery Others
Source: Spire Research and Consulting

16. Indonesia E-Commerce Buyer Demographic
Ideal time for product delivery based on customers’ opinion (%)
0 1 2 3 4 5 6 7 8 9 10
7
Intra-city delivery
Intra-island delivery
Inter-island delivery
Inter-country delivery
daysSource: Spire Research and Consulting
7
21
88
3.5
42
65
12
36
37
12.3
61.5
14
11.7

17. Indonesia E-Commerce Buyer Demographic
Experience in returning bought product
• 46.15% user have
• 53.85% user have not
Returning bought
product
• 33.08% unmatched /
wrong product
• 66.92% damaged
product
Reasons for returning the
product • 84.62% YES
• 15.38% NO
Will if affect your choice
for future shopping?
Source: Spire Research and Consulting

18. Final Words

19. Customer satisfaction is the key for repeated order from an e-shopping
portal. Fast and correct product delivery plays an important role in
customer satisfaction.

20. Fast delivery is crucial especially in intra-city purchase. The challenge is to
provide a fast delivery service with low delivery cost.

21. Tel: (62) 5794 5800
Fax: (62) 5794 5808
Wisma 46, Kota BNI 25th Floor,
Unit #08-10
Jakarta 10220
indonesia.info@spireresearch.com
www.spireresearch.com