Business Review and Case Studies
Vol. 5 No. 2 (2024): BRCS, Vol 5 No 2, August 2024

Diverse E-Commerce Business Models In Indonesia: A Cluster Analysis From The National E-Commerce Survey

Zenal Asikin (School of Business, IPB University)



Article Info

Publish Date
12 Aug 2024

Abstract

Background: The extent of digital transformation among Indonesian businesses is varied, highlighting the need for an in-depth examination of the characteristics of e-commerce. Purpose: The purpose of this study is to examine the diversity of Indonesian e-commerce business models.Design/methodology/approach: The microdata set from the 2023 e-commerce survey was officially obtained from BPS-Statistics Indonesia. This study focuses on wholesale and retail trade and motor vehicle repair (Category G). After data cleaning, our analysis included 11,345 businesses. Cluster analysis categorized e-commerce into distinct business models based on business profiles, innovative activities, and performance. Additionally, one-way ANOVA was employed to reveal significant diversity among these Indonesian e-commerce models.Findings/results: Five distinct business models were identified, each characterized by unique features. Business Model 1 includes business to customer (B2C) sellers with substantial offline revenue. Business Model 2 encompasses small-scale B2C sellers who focus on direct sales and also achieve significant offline revenue. Business Model 3 involves micro e-commerce sellers engaged in both B2C and business to business (B2B) transactions using traditional payment methods. Business model 4 consists of small B2B and B2C sellers with limited digital integration. Business Model 5 features marketplace-driven micro e-commerce sellers employing a hybrid approach.Conclusion: Our examination of Indonesian e-commerce business models revealed distinct clusters, each with varying roles, customer types, payment methods, internet usage, and revenue sources, highlighting significant variability in e-commerce strategies.Originality/value (State of the art): The originality of this study lies in its analysis of diverse Indonesian e-commerce business models to identify distinct types based on key characteristics. Keywords: business models, B2B seller, B2C seller, cluster analysis, e-commerce

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Journal Info

Abbrev

brcs

Publisher

Subject

Agriculture, Biological Sciences & Forestry Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

Business Review and Case Studies (BRCS) receive a variety of Business case studies and Business ideas generated from research that can be used for the education of professionals in the Business field. BRCS publishes papers that contribute to understanding the world of Business and its Developments. ...