The advancement of technology has also led to the evolution of marketing systems. Nowadays, buying and selling is not just done directly but also through the power of the internet, with business owners competing to open their businesses online, commonly known as e-commerce.

Platforms like Lazada, TokoPedia, BukaLapak, and others are examples of marketing through the use of the internet. Each of these e-commerce companies has its own unique business system. In Indonesia, e-commerce businesses are generally divided into five types. Here are the 5 e-commerce business systems in Indonesia:

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1. Classified/Listing Ads

This e-commerce business model is one of the simplest forms. The service provider of a classified e-commerce platform does not directly involve itself in the buying and selling process. The provider only acts as an intermediary between sellers and buyers in a particular space.

Characteristics of the classified system include that the e-commerce website does not directly facilitate online transactions. The second characteristic is that anyone who wants to sell an item is free to do so, and the e-commerce platform earns revenue from each premium ad posted on its site.

One example of an e-commerce provider that uses the classified system is OLX. This type of site is suitable for those looking to occasionally sell items, such as second-hand goods or surplus stock.

2. C2C Marketplace (Customer to Customer)

The business model of this type of e-commerce service involves providing payment and transaction methods for the ongoing purchases. Typically, the e-commerce platform offers an escrow service or a third-party account.

The function of escrow is to act as an intermediary between the seller, buyer, and the e-commerce platform. Once a purchase agreement is made, the buyer must transfer the funds to the escrow service. Once the funds are confirmed, the seller can send the product to the buyer, and after the buyer confirms receipt, the escrow service will release the payment to the seller.

Using escrow ensures greater safety, and if there’s an issue with the item, the money can be refunded to the buyer. This model is more suitable for sellers who are serious about online sales, often dealing with large quantities of stock and possibly owning a physical store.

3. Shopping Mall

The e-commerce shopping mall business system is similar to the marketplace model, but with a key difference in the type of sellers allowed on the platform. Sellers on this platform are typically big brands with a recognized reputation in both local and international markets. To be listed on such sites, sellers must first undergo a verification process.

From a revenue perspective, the e-commerce platform can earn commissions from large brand sellers, which can generate a higher income. Currently, the e-commerce platform implementing the shopping mall business system is BliBli.

4. B2C Online Store (Business to Customer)

This business system focuses on selling goods or products owned by the e-commerce company itself. The profits from these sales go directly to the e-commerce company and are not shared with other parties.

This type of business is one of the most developed in Indonesia, but its development is not easy. In addition to requiring significant capital to handle stock, the e-commerce platform also needs to manage its inventory independently. Lazada is one of the companies in Indonesia that operates under this business model.

5. Social Media Shop

This business model emerged with the rise of social media. E-commerce companies use the potential of social media to expand their business. Facebook still dominates as the main platform for business growth, but recent shifts in social media trends have introduced new competitors like Instagram and Twitter.

The advantage of this e-commerce model lies in the vast consumer base on social media and the ease of setting up such shops. One e-commerce company that implements this model is Onigi.

Payment Systems for E-commerce

In addition to business systems, the payment systems for e-commerce have also become a popular topic. Currently, there are many types of payment systems available for various e-commerce platforms.

1. Bank Transfer
   Among the many payment options, bank transfers remain the most widely used. It’s proven to be accessible to many people across different demographic groups.
2. e-Wallet
   In recent years, e-Wallets have gained popularity due to their speed, practicality, and the convenience of being accessible on mobile devices. Some e-commerce platforms have even developed their own e-Wallets, like ShopeePay from Shopee. There are also universal e-Wallets, like LinkAja from BUMN, which can be used for payments across thousands of e-commerce platforms.
3. Credit
   Credit payments have become more flexible compared to a few years ago. Payments no longer require a credit card, as third-party lending services and installment options are now available.
4. COD (Cash on Delivery)
   This e-commerce payment method is ideal for individuals without bank accounts or those who cannot easily access banking services. COD involves paying in cash at the time of delivery directly to the seller.

Each e-commerce business model has its own advantages and disadvantages. So, which e-commerce business system suits your online business?

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