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Indonesia ecommerce growth opportunity: Reseller market – McKinsey

Indonesia ecommerce growth opportunity: Reseller market – McKinsey

Indonesia’s e-commerce market is booming. In 2021, it became the ninth-largest e-commerce sector in the world, valued at $43 billion1“Indonesia e-commerce sectors,” International Trade Administration, September 6, 2022.—nearly six times its value in 2018 ($8 billion), when McKinsey published its in-depth report on Indonesian e-commerce and its impact on the national economy.2“The digital archipelago: How online commerce is driving Indonesia’s economic development,” McKinsey, August 28, 2018.According to that report, the vast majority—an estimated 85 percent—of merchants in Indonesia’s flourishing digital economy are resellers or distributors; only 15 percent of merchants sell their own products.3As of 2018. These micro, small, and medium-size enterprises (MSMEs) occupy a large share of Indonesia’s e-commerce marketplace, representing an estimated 4.5 million active online sellers at the end of 20174“The digital archipelago: How online commerce is driving Indonesia’s economic development,” McKinsey, August 28, 2018.. The country’s overall e-commerce adoption spiked during the COVID-19 pandemic and is expected to continue its rapid expansion, with 60 to 90 percent of consumers intending to continue shopping online.5“Survey: Indonesian consumer sentiment during the coronavirus crisis,” McKinsey, October 17, 2022.But perhaps the pandemic’s most enduring outcome will prove to be the upsurge in one class of consumers: resellers, commonly overlooked by consumer… 

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