Beyond online shopping festivals - ensuring outside-Java customers’ loyalty
Undoubtedly, online shopping festivals have been able to acquire vast amounts of GMV and customers. However, with the absence of sufficient infrastructure, certain Indonesian regions will be inaccessible, goods delivery will take long hours and will ultimately lead to a higher cost of logistics services. In 2019, outside-Java customers spend 20% to 50% of their total basket size on shipping. Poor logistics infrastructure deemed as a significant hindrance of logistics service improvement.6 7
As an effort to growth hack the e-commerce expansion outside Java, e-commerce industry players have offered solutions to overcome logistics issues and reaching more outside-Java customers. One solution offered by Tokopedia is through establishing an intermediary along the e-commerce supply chain. The middlemen are dispersed throughout the country to reach a broader population, especially those who reside in outside-Java areas.