Is local e-commerce in Indonesia still viable? How to layout overseas warehouse?
In recent years, as domestic e-commerce competition has become increasingly fierce, more and more sellers have set their sights on overseas markets, especially in Southeast Asia. Among them, Indonesia, as one of the largest e-commerce markets in Southeast Asia, with a population of more than 276 million, Internet penetration continues to grow, with huge potential for e-commerce. But many sellers still have questions: Is it too late to enter Indonesias local e-commerce? How to find a reliable overseas warehouse? Can Southeast Asian e-commerce make money in the end? Today, we will discuss these issues in depth to help you seize the new opportunities of Southeast Asian e-commerce! First, the status of the Southeast Asian e-commerce market: is it too late to enter? Can tell you very clearly: not at all late! Policy support: China encourages enterprises to go out, especially the promotion of the Belt and Road policy in Southeast Asia, to provide convenient conditions for cross-border trade. Demographic dividend: Indonesia (276 million), the Philippines (110 million), Vietnam (nearly 100 million) and other countries with rapid growth of Internet users, e-commerce penetration rate still has huge room for improvement. Consumption upgrade: with the rise of middle class in Southeast Asia, the demand for online shopping has surged, especially the rapid growth of electronic products, household goods, fashion apparel, beauty care and other categories. Conclusion: Southeast Asian e-commerce is still in a period of rapid growth, and there is still a huge opportunity to enter now! Second, can Indonesias local e-commerce be done? Key Challenges and Opportunities ✅ Opportunities: Large market, less competition: compared to the domestic e-commerce involution, Indonesias local e-commerce competition is relatively mild, there is still a blue ocean market. Social media e-commerce explosion: social e-commerce such as TikTok Shop and Instagram Shopping are growing rapidly in Indonesia, suitable for content marketing. Government support for e-commerce development: the Indonesian government is actively promoting the digital economy, and logistics, payment and other infrastructure continues to improve. ❌ Challenges: High logistics cost: Indonesia is a country of thousands of islands, logistics and distribution efficiency is low, choosing the right overseas warehouse is crucial. High localization operation requirements: need to understand the local culture, payment habits (e.g. COD cash on delivery accounts for a high percentage), holiday promotional nodes, etc. Policy compliance: Indonesia has certain restrictions on imported goods and needs to pay attention to tax and customs clearance policies. Suggestion: Prioritize light and small items and high profit products to reduce logistics costs. Cooperate with local overseas warehouses to improve logistics efficiency. Do a good job of localized operations, such as optimizing the Indonesian language details page, provide local customer service support. Third, how to find a reliable Indonesian overseas warehouse? Overseas warehouses are a key part of cross-border e-commerce, which can significantly improve logistics efficiency and reduce the cost of returns and exchanges. Here are a few ways to find an overseas warehouse in Indonesia: 1. Cooperation through cross-border logistics service providers JT (JT): has a well-established warehousing and distribution network in Indonesia. LWE (Logistic Worldwide Express): focusing on the Southeast Asian market, providing integrated warehousing + distribution services. Ninja Van: covering many cities in Indonesia, suitable for small and medium-sized sellers. 2. Through the official cooperative warehouse of the e-commerce platform Shopee Indonesia Overseas Warehouse: sellers stationed in Shopee can apply for the official warehouse and enjoy the platform traffic support. Lazada Indonesia Warehouse: Lazada provides FBL (Fulfilled by Lazada) service to help sellers fulfill their contracts quickly. 3. Local third-party overseas warehouse Waresix: Indonesias local logistics company, providing warehousing + distribution services. SiCepat: a well-known logistics brand in Indonesia, with warehousing covering major cities. Considerations for choosing an overseas warehouse: ✔ Warehousing costs (billed by volume/weight) ✔ Distribution range (whether it covers the target market) ✔ System docking (whether it can be seamlessly docked with platforms such as Shopee, TikTok, etc.) ✔ Returns handling capability (to reduce after-sales costs) Fourth, why do some sellers fail to do Southeast Asian e-commerce? According to industry experience, failed sellers usually have the following problems: 1. lack of determination, fear Many novice sellers do not dare to invest, the water test mentality is serious, resulting in operation, product selection, promotion are not in place. 2. no price advantage, follow the trend of product selection blindly follow the sale of popular products, but the supply chain has no advantage, and ultimately fell into a price war. 3. Insufficient operation experience Not familiar with platform rules, advertising techniques, localized marketing strategy, resulting in low conversion rate. 4. no core products, rely on followers No differentiated products, easy to be imitated or surpassed by competitors. Key to success: Choose the right market segments (e.g. Muslim clothing, household small appliances, etc.). Translated with DeepL.com (free version)
Jul 08, 2025, 11:38:50 AM