UNAIR NEWS Recently, ane-commerceplatform from China announced its permanent closure as of March 31, 2023. Thise-commerceclosure added to the list of similar businesses that have decided to close their business services in Indonesia.
Lecturer in Strategic Management at , Mochammad Thanthowy Syamsuddin SE MAB, believes that the closure of thee-commercebusiness is closely related to the consolidation phase the company is currently experiencing.
淚 see the phenomenon of thee-commercebusiness platform is currently in a consolidation phase to create profits for investors.In short, thee-commerce platformsare heading towards the profitability phase, he said in an interview Tuesday, February 7, 2023.
In this consolidation phase, he continued,e-commercecompanies respond to many external aspects, including the effect of reduced purchasing power due to the Covid-19 pandemic and other macroeconomic aspects, two things: cost-cuttingand potentialrevenue streamoptimization.
淚t explains why thereis a significantlayoff in some businesse-commerce platforms, 媼he said.
On the other hand,e-commercecompanies also increase admin costs, commission fees and even require internal logistics services without athird party.This condition brings several consequences where companies that fail to form a road map to profitability and run out of capital must goout of business.
Emergence of new competitors
Thee-commercebusiness is getting new competitors from social media platforms such asTikTokandInstagram.These two platforms are very close to the life of the millennial generation and gen Z.
淭here is a potential that buying and selling transactions or purchasing decisions for these two generations in the future will be dominated by these two platforms, said the lecturer in the Management Department of the Faculty of Economics and Business (FEB) UNAIR.
Therefore,e-commercebusiness people must be able to optimize this phenomenon and continue to integrate their shop or outlet ecosystem.Moreover, Indonesiane-commerceconsumers are highly affected by sales and discounts.
淭here is free shipping for moving, there is a certain loyalty bonus for moving.We will rarely encounter offers like this frome-commerce platforms because of the phase above (the consolidation phase, ed), said Thanthowy.
Online platform optimization
Given this phenomenon, Thanthowy recommends thatsellerswho have outlets ine-commerce build good credibility on theplatformand social media to anticipatee-commerceplatform policies that remove the flexibility of logistics selection and increase admin costs.In addition, to reach more potential buyers and customers.
In the medium and long term, he also recommends thatsellers听辞苍听e-commerceplatforms have their own booth by building a website that contains all product offerings, including payment facilities.
淭his must be done by business people and MSMEs, especially for those who have their own products, not justtrading, so that all marketing channel activities bothonlineandofflineare directed to their own website, he explained.(*)
Author: Agnes Ikandani
Editor: Binti Q. Masruroh
