Survey: Majority of Indonesian E-commerce Businesses Use Cash on Delivery (COD) Payments

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Cindy Mutia Annur 19/12/2022 15:40 WIB

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A BPS survey shows that the majority of Indonesian e-commerce businesses still used cash on delivery (COD) payments in 2021. The percentage reached 83.11%.

Percentage of E-commerce Businesses by Frequently Used Payment Method (2021)

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Percentage of E-commerce Businesses by Frequently Used Payment Method (2021)

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A survey by Indonesia's Central Bureau of Statistics (BPS) shows that the majority (83.11%) of Indonesian e-commerce businesses across almost all sectors still used cash or Cash on Delivery (COD) payment methods in 2021.

COD involves paying cash at the point of purchase or upon delivery.

The next most frequently used payment method was bank transfer, via ATM (Automated Teller Machine), internet banking, or mobile banking, accounting for 12.57%.

E-wallet payments were used by 2.24% of e-commerce businesses, while credit cards were used by only 2.08%.

The high usage of cash/COD among Indonesian e-commerce businesses indicates a low level of financial literacy among the population. Non-cash payment methods offer greater convenience for both buyers and sellers in online transactions.

The BPS survey also found that over half (58.79%) of Indonesian e-commerce businesses delivered products directly to buyers. 31.12% allowed buyers to pick up orders from the store or a designated pick-up point.

Meanwhile, 9.30% used shipping services, and only 0.79% provided a download link for products from a website, application, software, or other platform.

The BPS survey covered 15,677 e-commerce businesses across 34 provinces and 159 regencies/cities. The sample included businesses that used the internet to receive orders or sell goods/services in 2021.

Editor : Annissa Mutia

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Survey: Majority of Indonesian E-commerce Businesses Use Cash on Delivery (COD) Payments

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