Types of Business Models for E-Commerce in Indonesia – If you have plans to start an e-commerce business, now is the right time to start it. Why? Because the growth of technology and changes in consumer behavior driven by the previous pandemic have created great opportunities for online businesses or businesses. In addition, the capital needed is also relatively small, and the market reach is wider.

You may need help or have questions about the business, how should I start the e-commerce business? What type of e-commerce business model can be chosen for my business? etc.

In this article, we will discuss the various types of e-commerce models that exist in Indonesia.

Understanding E-Commerce Business

e-commerce or electronic commerce is any form of buying and selling transactions of goods or services conducted through electronic media, especially the internet.

Types of Business Models E-Commerce

1. Business-to-Business (B2B)

Business-to-Business (B2B) refers to transactions for buying and selling products or services between companies, not between companies and individual consumers (B2C). B2B covers various aspects, from transactions for buying and selling raw materials, equipment, to professional services needed by other companies to run their operations.

B2B e-commerce in Indonesia is growing, especially with the need for companies for efficiency and automation of the procurement process.

2. Business-to-Consumer (B2C)

Business-to-Consumer (B2C) refers to a business model in which a company sells products or services directly to individual consumers for personal use. This is a common retail model, both online and offline, and involves direct transactions between businesses and end consumers

This model is the most common and easily found in Indonesia, with various large e-commerce platforms such as Tokopedia, Shopee, Lazada, and others.

B2C covers a wide range of product categories, from clothing, electronics, food, to services.

3. Consumer-to-Consumer (C2C)

Consumer-to-Consumer (C2C) refers to a transaction model where consumers sell products or services directly to other consumers. This model is usually facilitated by a third-party platform such as an online marketplace.

Example: Selling used goods or household products through platforms such as Tokopedia, Bukalapak, or OLX.

4. Consumer-to-Business (C2B)

Consumer-to-Business (C2B) refers to a business model where consumers or individuals provide products or services to companies or organizations. This is the opposite of the traditional B2C (Business-to-Consumer) business model where companies sell products or services to consumers

Example: A graphic designer offers logo design services to companies.

5. Other models

> B2A (Business-to-Administration)

B2A, ​​or Business-to-Administration, refers to electronic transactions between businesses and government agencies or public administration. This is a subset of e-commerce that involves business relationships with government agencies, particularly in the context of procurement of goods and services, and compliance with administrative and regulatory requirements.

> G2C (Government-to-Consumer)

G2C (Government-to-Consumer) refers to an interaction model in which the government provides services, information, or transactions electronically to citizens or consumers. This model utilizes information and communication technology to facilitate public access to various public services and government information

Transactions between the government and citizens, for example online public services such as tax payments or permits.

> O2O (Online-to-Offline)

A model that combines online transactions with offline activities, such as consumers ordering food online and picking it up at a restaurant.

Types of Fulfillment Methods Used by E-Commerce Businesses

1. In-House Fulfillment
2. Dropshipping
3. Third Party Logistics (3PL)
4. Wholesale
5. Whitelabel
6. Subscription-based
7. Advertising
8. Subscription
9. Transaction Fee
10. Affiliate

Benefits of E-commerce

For Businesses

1. Wider Market Reach
2. Lower Operational Costs
3. Increased Efficiency
4. Customer Data Analysis
5. Flexibility and Innovation

For Consumers

1. Ease of Shopping
2. Wider Product Choices
3. More Detailed Product Information
4. Safe and Easy Transactions
5. Time and Cost Savings

Licensing for E-Commerce Businesses in Indonesia

In addition to the PT establishment documents, e-commerce businesses in Indonesia also require:

1. Electronic System Organizer Registration Certificate (TDPSE)
2. Electronic System Trading Business License (SIUPMSE)
3. Additional Licenses (if needed):

• BPOM: If you sell food, beverage, or cosmetic products, you need a license from the Food and Drug Supervisory Agency (BPOM).
• Halal Certification: If your product has halal elements, you should immediately take care of halal certification to increase consumer confidence.
• Industrial Business License (SIUI): If you produce your own goods.

Conclusion

E-commerce in Indonesia has several main business models, each of which has different characteristics. By knowing the Types of E-Commerce Business Models in Indonesia, we can choose which one suits our needs.

Need PT establishment services and licensing for E-Commerce businesses?

Let’s contact Indoservice.

Indoservice, a secretarial and licensing services consulting company firm that can assist you in establishing a company in Indonesia and business-related licensing. Trusted and experienced in Indonesia, committed to providing the best and fast service to meet your needs.

Our consultants will assist you in the process of establishing a company and obtaining permits related to your company’s business in Indonesia. Contact us now for special offers at +62877-1449-8500 or admin@indoservice.co.id