The e-commerce company JD.ID will shut down at the end of the first quarter of this year.
"With a heavy heart, we inform you that JD.ID will stop accepting your orders starting February 15, 2023, and all services will be terminated on March 31, 2023," said JD.ID management on its official website, quoted on Tuesday (31/1/2023).
JD.ID is a subsidiary of JD.com, an e-commerce giant based in China. After closing its services in Indonesia, JD.com plans to focus its business on the international market.
"This (the closure of JD.ID) is a strategic decision by JD.com to focus on the development of its cross-border supply chain network, core logistics and warehousing," said Setya Yudha Indraswara, Head of Corporate Communications & Public Affairs JD.ID, as reported by Katadata.co.id, Monday (30/1/2023).
Previously, JD.ID had conducted layoffs of approximately 200 employees in mid-December 2022.
"The company needs to take adaptive measures to meet the challenges of rapidly changing business conditions. Especially since the e-commerce business has mushroomed, making business competition and product campaigns unavoidable," said Setya in his press release last month (13/12/2022).
Based on SimilarWeb data, the trend of visits to JD.ID's online shopping site has indeed decreased throughout the last quarter of last year, from 2.3 million visits in October 2022 to 1.6 million visits in December 2022.
If traced further, the decline has been occurring for the past two years. In Q2 2020, JD.ID was still able to achieve an average of 9.3 million website visits per month. However, in Q3 2020, this number decreased drastically to an average of 4.8 million visits per month.
Since then, website visitors have continued to decline, to only an average of 1.9 million website visits per month in Q4 2022.
JD.ID's website visitors also lag far behind its competitors. According to SimilarWeb data, throughout Q4 2022, Shopee's online shopping website was able to garner between 170 million and 190 million visits per month, the highest in Indonesia.
Then below Shopee are Tokopedia, Lazada, and BliBli, which were able to achieve hundreds or tens of millions of website visits per month. This illustrates how fierce the competition is in gaining market share of online shopping website visitors in Indonesia.