Elevenia is the newest e-commerce marketplace popping up in Indonesia. Though the new kid on the block, the team is definitely one to look out for as it is a joint venture between Indonesia’s telco XL Axiata and South Korean online and mobile service firm SK Planet, a subsidiary of SK Telecom.
Elevenia’s business model looks similar to Qoo10 in Indonesia as it doesn’t only offer the usual items from its merchants. It also has daily deals, e-coupons, and other promos like loyalty points. All of the items on Elevenia are 100 percent from merchants; the company itself doesn’t hold inventory.
Madeleine De Guzman, vice president of Elevenia’s marketing division, claims they now already have over 500,000 products from 6,000 sellers within the site. That’s huge considering rivals Bukalapak now has 400,000 live item listings while Tokopedia1 had 770,000 live listings in August.
One key difference between Elevenia and the other marketplace sites is that Elevenia, while free-to-list, takes commission from its merchants from the get-go. Tokopedia, Bukalapak, Rocket Internet’s Lamido, and eBay’s Blanja have yet to charge its merchants.
So how does Elevenia plan to compete with that? De Guzman explains that in exchange for paying a transaction fee, merchants get better services. Elevenia doesn’t only offer merchants an e-commerce platform, it also gives increased visibility to sellers and often subsidizes the product discounts. Elevenia will also have a huge budget for marketing activities like TV ads to make sure there’s a huge customer base for merchants.
The company offers workshops and trainings to its sellers. It has three seller zones (pictured right) in Jakarta, each equipped with photo studios where sellers can just come by and ask the photographers to take professional pictures of their products.
Indonesian sellers would probably sell in more than one marketplace site in Indonesia, so those pictures can be used elsewhere. “It’s their prerogative if [later] they want to upload the pictures on [rival] Bukalapak,” admits De Guzman.
There are also two training rooms – complete with computers – inside the seller zone at Plaza 89 building. Trainers there will teach sellers things like using Photoshop and how to take care of their online store-fronts.
Elevenia already has 100 employees, out of which 80 are recruited from other local e-commerce sites to bring local expertise. 10 came from XL Axiata, and the other 10 from SK Planet. The leader is CEO James Lee, who is the former CEO of SK Planet’s Korean e-commerce marketplace 11st.
The team is very serious about Indonesia. De Guzman explains that there are three ways the team wants to win the market: offer more trust to users through 100 percent verified sellers and escrow payment, offer more and better products, as well as more convenience like with its already-launched Android mobile app. The iOS version will be available in the coming days.
Here are more pictures of the seller zone:
(Editing by Terence Lee)