Many Indonesian Businesses Have Yet to Transition to E-commerce: What Are the Reasons?

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Nabilah Muhamad 21/09/2023 11:15 WIB

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A BPS survey shows that many businesses still do not sell on e-commerce platforms. The main reason is that they are more comfortable selling directly, as stated by 78.12% of local businesses.

Reasons Indonesian Businesses Do Not Sell on E-commerce (2022)

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Reasons Indonesian Businesses Do Not Sell on E-commerce (2022)

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The rise of e-commerce has made it easier for businesses to reach a wider range of consumers. However, many local businesses have yet to embrace digital business.

This phenomenon is recorded in the Central Bureau of Statistics (BPS) report titled *eCommerce Statistics 2023*. Several reasons explain why local businesses are not using e-commerce, the most common being the comfort of selling directly.

"It was found that many businesses had not yet adopted e-commerce in 2022. The most frequent reason (78.12%) was a preference for direct (offline) sales," wrote the BPS in its report.

Furthermore, 29.94% of businesses reported a lack of interest in selling online.

This was followed by businesses that did not switch to e-commerce due to a lack of knowledge or skills (27.83%).

Meanwhile, 13.80% of businesses cited other reasons.

The BPS surveyed 31,753 e-commerce business samples across 34 provinces and 302 regencies/cities. The survey sample comprised businesses that used the internet to receive orders or sell goods/services during 2022.

(See also: Food and Beverages Were the Most Common Business Types on Indonesian E-commerce in 2022)

Editor : Padjar Iswara

"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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Many Indonesian Businesses Have Yet to Transition to E-commerce: What Are the Reasons?

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