Tokopedia Sharpens Partner Business Through Digital Products

Tokopedia took steps to adjust its line of business Tokopedia Partners by eliminating wholesale product purchase services in applications and focusing on digital products. The company is said to be working on business sustainability by sharpening its focus on becoming a more specific platform in order to produce a long-term positive impact.

Head of Mitra Tokopedia Carlo Yudhistira Praditya revealed that the percentage of users of digital products such as mobile phone credit, data packages, game vouchers and electricity tokens in the Mitra Tokopedia application is much higher than wholesale products, such as groceries and other physical products.

"Seeing this data, we decided to adjust our business by eliminating the wholesale product purchase feature in the Mitra Tokopedia application, and facilitating individuals and business owners to sell 21 types of digital products at competitive prices, so they can earn more income," explained Carlo.

A total of 21 types of digital products are divided into three categories, including Purchases (covering 5 products, such as credit and game vouchers), Digital Wallet (covers 3 products, such as balance and top up GoPay, and Payments (includes 13 products, such as Tokopedia and PDAM bills).

"This Tokopedia Partner business adjustment is in line with the goal of the GOTO group to build a long-term growing business," he added.

Apart from that, Tokopedia Partners also try to help people who are constrained to access digital products. Communities in more than 700 cities or regencies can now access a variety of digital products through individuals or business owners (including stalls) through the Mitra Tokopedia application.

Based on data from Tokopedia Partners, a number of digital products recorded rapid growth in the first quarter of 2023, such as education costs, internet and cable TV, and e-samsat. The average increase in transactions reached almost 4x compared to the same period in 2022.

"In the future, Tokopedia partners and all strategic partners will continue to focus on helping digitally equalize the economy in Indonesia. We believe that this can only be realized if there is collaboration and innovation."

Shop digitization

Quoting Euromonitor data, there are 3,61 million retail businesses in Indonesia. This figure includes the warung business ecosystem that has existed for a long time and is very close to Indonesians. According to Warung Pintar's internal survey, as many as 9 out of 10 Indonesians meet their daily needs at stalls, ranging from basic needs to ready-to-eat food.

The presence of stalls and grocery stores has had a positive impact on the wheels of the national economy, and at the same time has become a prospective micro-business phenomenon in Indonesia. The value of traditional retail sales is even said to be Rp. 6 trillion every day. One way to stay relevant and maintain the dynamics and sustainability of this industry is through digitization.

In Indonesia itself, the government is also continuing to roll out various efforts and is targeting at least 30 million micro, small and medium enterprises (MSMEs) to be able to go digital at 2024. In addition, Indonesia's national digital transformation program has also created a framework for economic development and the need for digital infrastructure.

Regarding shop digitization, Tokopedia has also collaborated with the Ministry of Cooperatives and SMEs of the Republic of Indonesia to encourage the adoption of digital platforms for business development for stall owners. Apart from Tokopedia Partners, platforms such as Gudang Ada, Smart Shop, Trade, and Ula also offers stall digitization solutions in Indonesia.