1. Entrepreneur

Looking at the Trend of MSMEs Depending on the Marketplace Platform

General Manager of Ginee Southeast Asia Evelyin Wu shared her response to DailySocial.id regarding the trend of using marketplaces among business players

Some time ago, the Indonesian Minister of Cooperatives and Small and Medium Enterprises (Menkop UKM) Teten Masduki revealed that 86% of perpetrators MSMEs currently depends on the continuity of its business on the internet, including on the marketplace platform.

The trend of SMEs towards digitization This is indeed one of the programs supported by the government. Teten said that MSME actors who dominate the structure of the business world in Indonesia have a crucial role in mapping the digital economy.

As of June 2022, there were 19,5 million MSME units in Indonesia entering the digital ecosystem. Where 82% of them use the internet to promote their business and 73% of them sell on marketplace platforms.

Related to this trend, General Manager Ginee Southeast Asia Evelyin Wu shared her response to Dailysocial.id. According to him, the use of a marketplace platform in running a business is a good step for MSMEs.

“In running a business, MSMEs face many challenges. Marketplace platform support can be one of the drivers of the formation of public awareness of a company brand. In addition, transactions online Not only does it make brands 'dependency', it actually helps MSMEs to grow faster,” said Evelyin, last October 14, 2022.

Is Fully Using Marketplace Good for MSMEs?

The use of the marketplace certainly has a good impact on the continuity of the MSME business. Marketplace supports MSMEs to be more go digital so that it can reach a wider market.

According to Evelyin, one of the advantages of the marketplace that it has become a favorite place for business actors to run their business is because the marketplace has a traffic clear.

“Consumer habits in the marketplace have supported MSMEs to develop their business with access to trade online which is easy through the platform,” Evelyin continued.

In addition, several advantages of the marketplace so that it becomes the right choice for business actors to run a business, including the following:

Marketplace advantages

  • Can Start a Business with Minimal Capital

In doing business using a marketplace platform, business actors do not need to rent a place. Although some marketplaces apply certain fees, they are usually not as big as the cost of renting a place such as a shop or field.

  • Wide Market Reach

Marketplace has a variety of users, in this case customers, consisting of various age ranges, backgrounds, education levels, occupations, tastes, and others without being limited by space and time. That way, business actors have the opportunity to have more potential buyers.

  • Easy to Read Market Competition

In the marketplace, business actors can conduct competition analysis by utilizing features such as search. Business actors can see the price range, promotional tricks, and special offers used by other business actors.

However, it is undeniable, the marketplace also has various shortcomings that can be a challenge for the MSME business journey. Some of the disadvantages of using marketplaces for MSMEs are as follows:

Disadvantages of Marketplace

  • Tight Competition among Business Actors

The easy use of the marketplace platform allows many business actors to sell similar products. Business actors need to think of special strategies so that their products have their own characteristics so that they can win the hearts of customers.

  • Rely on Marketplace Manager

The business continuity of business actors is highly dependent on the regulations and reputation of the marketplace manager. If the marketplace used has unclear regulations and lacks promotion, it will adversely affect business development.

  • There are often delays in payments

Some marketplaces usually have regulations where customers are given a certain time to be able to cancel orders that have been made. As a result, business actors will not receive their money immediately after the transaction is entered.

The Role of the Marketplace to Support MSME Business Continuity

Evelyin said that in the midst of several shortcomings that are owned by the marketplace, a platform that accommodates business people online it needs to build trust in its users, be it business actors or customers, so that they can maximize the use of services on their platform.

"The way is with good customer service and response times, relentless platform stability, especially during seasons or peak sales, to direct meetings between the marketplace and business actors," said Evelyin.

According to him, this method is done so that business actors can provide input on various features or support they need. That way, the marketplace can provide the best service to support the business operations of business actors.

“Service for users is very important. Sometimes there are business owners who may not be technology savvy, when faced with peak sales with high volume of demand, this is where they need fast and appropriate support and service,” said Evelyin.

Tips for Successfully Running a Digital Business with and without Marketplace

In addition to marketplace support, Evelyn also advises business actors to maximize support in doing business online with solution omnichannel. Services omnichannel such as Ginee can help businesses manage their online stores in multiple marketplaces at once.

In addition, launching AntaraNews, Head of the Indonesian Chamber of Commerce's (KADIN) People's Economic Empowerment Agency (KADIN) Bambang Brodjonegoro also said that digitizing business actors is not just using the marketplace.

The reason is, not a few business actors are actually less successful when relying on their business continuity only on the marketplace. Some of this is because business actors are not able to maintain maximum product and service consistency.

According to Bambang, digitalization should be carried out end-to-end, namely comprehensively from all aspects of business continuity for business actors. Starting from production activities, management, financial management and so on.

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