On Indonesia’s independence day on August 17th, marketplace site Tokopedia 1 celebrated its fifth anniversary. Since its inception, the startup has grown significantly and now claims to be the biggest online store in Indonesia.
Tokopedia now has tens of thousands of merchants. Every month, the site records over 10 million visitors and eshoppers buying two million products. According to our calculation, about 24 million items were sold on the marketplace last year.
For a sense of scale, Indonesia’s fledgling ecommerce market is worth about US$2.6 billion in sales this year – and that’ll grow to nearly US$5 billion by 2016.
Tokopedia CEO William Tanuwijaya says his company grew more than 200 percent every year. Tokopedia also received new investment every year, and is currently seeking a new round. Internally, the company now employs about 100 employees.
Covering the whole archipelago
Tokopedia says that most of its buyers come from outside of the capital, Jakarta. 50 percent of buyers come from Java Island (not counting Jakarta), 37 percent from outside Java Island, and 20 percent from Jakarta. When it comes to sellers, 36 percent come from Jakarta, 55 percent from Java Island (not counting Jakarta), and 9 percent from outside Java Island. In terms of gender, 61 percent of transactions on Tokopedia come from women shoppers.
Mobile users are important for Tokopedia as 55 percent of its traffic comes from mobile devices. About a month ago the marketplace launched its Android mobile app, and updated the mobile site for both smartphone and feature phone users. The mobile app has already been downloaded 100,000 times.
Tokopedia’s Android app is free on Google Play. The team is developing the iOS version now.
Struggling to make money from premium features
Although most of Tokopedia’s services for sellers are free, the team has introduced a premium scheme called Gold Merchant. By paying a monthly fee of IDR 100,000 (US$8.50), Gold Merchants can give their employees authority to manage its store on Tokopedia. Automatic currency conversion is also provided to subscribers.
Tanuwijaya says that the premium program has received a good reception from sellers. However, fewer than 10 percent of merchants have opted to pay for the service so far. That’s part of why Tokopedia has yet to record a positive cashflow. He says they will launch another premium feature on Tokopedia soon.
You can see Tokopedia’s new milestone video below (in Indonesian):
This article is also available in the Indonesian language.