More Indonesians now shop online but are less satisfied

  • Mobile credit is the top online purchase followed by fashion and gadgets
  • eCommerce players must innovate to avoid stagnation and saturation

 

More Indonesians now shop online but are less satisfied

 

CONSUMER reliance on eCommerce to meet their needs has increased, but their level of satisfaction with the quality of services that is not as high as last year, according to the results of survey of online shopping behavior and consumer perceptions of eCommerce by online cashback platform, ShopBack.

The study involved approximately 2,400 respondents of which 51% were male and 49% female. They frequented 160 online merchants on ShopBack’s platform across seven cities in Indonesia.

“Our respondents agree that the world of eCommerce in Indonesia has been growing and has able to change their shopping behaviour. Over ninety-two percent (92.3%) of respondents say their online shopping activities this year has increased compared to last year.

“Eighty-three percent of respondents even claim to have reduced shopping activities in traditional stores. In a month, the average online shopping frequency has jumped up to five times. This is higher than the results of our survey last year that showed the average frequency of spending as being only one to two times a month,” said ShopBack Indonesia country general manager Indra Yonathan (pic) in a statement.

The results also indicated that eCommerce consumers are now no longer just purchasing fashion items and gadgets. They are increasingly relying on eCommerce to meet their key needs and support the productivity needed for their daily lives.

Mobile credit is the most frequently purchased product (58%), out-performing the fashion category (55.8%), and gadgets (49.8%).

“Now, almost every local eCommerce player has mobile credit on their product list. From our point of view, eCommerce will able to reach a wider market across Indonesia by selling mobile credit on their marketplace,” he explains.

Consumers are also using eCommerce for other needs such as electricity bill payments (35.5%) and online transportation services (83%).

The growing preference for online shopping is based on consumer perception that eCommerce is able to offer a more practical and efficient shopping experience.

Some consumers say they will inevitably have to shop online because the required products are only available in online stores.

Strategy for eCommerce

There may be more people shopping online but this rise in numbers is not in step with satisfaction levels.

“Last year, if there was a promotion, it would boost the satisfaction rate to 98%. This year, the satisfaction level is down to 86%,” Indra adds.

This decline in consumer satisfaction is expected to encourage eCommerce players to innovate in order avoid saturation and stagnation.

About 21% of respondents stated that they feel “weary” of the services and promotions offered by eCommerce players.

The study also reveals that consumers are interested in online shopping because of discounts, free postage, higher cash-back with the bonus of getting other products for free, and other promotional programmes such as buy one get one free.

"Cashback programmes are in demand as 91.2% of online shoppers in Indonesia actually are aware that they must save to meet other needs. Seventy-eight percent feel good about cashback which they earned from online shopping as it will increase their savings,” he says.

In terms of services, 43% of respondents said that they had unsatisfying experiences when shopping online. According to them, they received products that were incompatible with the photo posted online (62.9%), the price was raised before being discounted (57.7%), the discount price was not accurate (33.3%), and they received damaged goods (30%).

Indra encourages online sellers to put effort into photo displays and advises buyers to check a store’s review before they purchase an item.

ShopBack has given approximately 40 billion rupiah (US$3 million) in total cashback to consumers since its launch in 2014.

 

Related Stories:

Indonesia is the ‘highest growth’ market for ShopBack

ShopBack claims healthy growth, but wants to step up

ShopBack stays ahead of the game with ‘giant partners’

Cashback startup Getex unfazed by competition

 

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