| Study Period | 2019 - 2032 |
| 2024 Market Size | USD 75.1 billion |
| 2025 Market Size | USD 85.8 billion |
| 2032 Forecast | USD 230.5 billion |
| Growth Rate (CAGR) | 15.2% |
| Largest Payment Method | Digital Wallets |
| Fastest Growing Business Model | Hybrid |
| Nature of the Market | Fragmented |
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The Indonesian e-commerce market size was USD 75.1 billion in 2024, and it will grow by 15.2% during 2025-2032, to reach USD 230.5 billion by 2032.
The market is driven by the enhancing internet connectivity, escalating number of tech-savvy consumers, and rising smartphone users. Changes in consumers’ lifestyles stimulate the shift toward online shopping and digital payments. Large e-commerce platforms, such as Shopee and Tokopedia, offer a wide variety of products and services to daily users for a better experience.
The increase in the rate of urbanization and improvement in income also drive people toward online shopping, owing to its higher convenience. As per reports, over 70% of the transactions for online shopping occur via smartphones. Digital payment gateways, such as GoPay, DANA, and OVO, support e-commerce by providing safe, quick, and easy-to-use options.
The national government has introduced the Quick Response Code Indonesia Standard to improve internet access and make transactions between different payment methods seamless.
The electronics category held the largest market share, of 35%, in 2024 due to the rising demand for laptops, smartphones, and accessories. As per reports, around 31% of the consumers shop for electronics via online retail platforms due to their convenience and affordability.
The apparel & footwear category will have the highest CAGR due to the rising awareness of the latest fashion trends, ease of shopping, and the effect of social media networks. Online retail channels offer a wide range of goods that satisfy the customer preferences across age groups and areas, including accessories, clothes, and shoes. Moreover, the acceptance of social commerce and mobile commerce has accelerated the expansion of this sector as consumers are opting to buy through channels and apps that provide convenience.
The products analyzed in this report are:
The business-to-consumer category held the largest market share, of 75% in 2024, due to the rise in internet access, smartphone usage, and everyday needs of young consumers. Advanced logistics, payment methods, and promotional activities, such as flash sales, cashback incentives, and free shipping vouchers, drive order volumes on platforms such as Shopee, Tokopedia, and Lazada. This is because they make online buying accessible and more convenient.
The business-to-business category will have the highest CAGR, of 15.9%, due to the rapid digital shift of businesses in Indonesia. SMEs are turning into online platforms, such as Ralali, to enable high-volume purchases and efficient business transactions for stock control, supply chain strengthening, and procurement enhancement. Various e-commerce platforms and government initiatives, such as 100 Smart Cities, drive the shift toward digital innovation and strengthen businesses.
The platforms analyzed in this report are:
The digital wallets category held the largest market share, of 45%, in 2024, because of their user-friendliness, wide acceptability across several media, and QR code-based digital payment system. According to reports, 40% of the consumers shop from online platforms using digital wallets.
The BNPL category will have the highest CAGR due to the growing demand for flexible payment alternatives and expansion in digital financial solutions. Additionally, cooperation between e-commerce platforms and fintech companies allows consumers to make use of installment payment options. As per reports, around 68% of the consumers use the BNPL payment option.
The payment methods analyzed in this report are:
The marketplace category held the largest market share, of 70% in 2024. This is due to the rapid expansion of platforms that provide a wide range of products from multiple sellers and secure payment options for an improved customer experience. As per reports, around 47% of the consumers shop through marketplaces.
The hybrid category will have the highest CAGR, 16.1%, because it provides customers with an enhanced experience from good product quality and a wide range of products. Websites such as Bukalapak and Shopee cater to wide-ranging customers’ needs.
The business models analyzed in this report are:
The standard category held the largest market share, of 60% in 2024, due to its affordability and stability across many platforms. As per reports, around 55% of the companies use standard delivery methods.
The same-day/next-day category will have the highest CAGR due to the high consumer demand for rapid delivery and improvements in distribution networks. The category is also propelled by the expansion of platforms providing fast shipping solutions, which increases loyalty and enhances customer experience. As per reports, around 80% of the consumers avoid using platforms that do not offer fast delivery options.
The delivery times analyzed in this report are:
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The market is fragmented due to the extensive landmass and varied cultural variety, which result in distinct consumer preferences in different regions. Smaller and regional players lead the market by providing services and products that align with specific cultural details. This market includes local and international businesses, such as Bukalapak, Shopee, Blibli, and Lazada, which enhance competition and further diversify this sector. Consequently, no single corporation controls the market, as regional players excel in providing personalized products depending on preferences.
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