UX Benchmark: E-Commerce Shopping Behavior — Shopee VS JD.ID
This Research is one of my task during my Internship as a UI / UX Designer at PT. Nectico Nusantara Teknologi at Bandung.
“My experience at PT. Nectico — as a company that has cooperative application services for digital ecosystems has taught me several long lessons Especially having the responsibility of having eCommerce feature services with the aim of making it easier for cooperative users to develop business units with online stores. Nothing is easy or simple and almost everything comes with hard work.”
Any business is tough at the best of times. Really, it is. That’s not a cliche I use lightly. I hate cliches but this one is spot on. At the best times in your business you’ll still be fighting for your position, fighting to grow and fighting to stay alive.
Then eCommerce arrived and with it, many myths. Myths so vast and so widely and blindly believed that they haven’t gone away.
How to Become a Great Product?
I have never been more active in my entire life. Since I started learning How to Become a Great Product, I have worked more, thought longer, built aggressively, and hustled harder than I have on anything else.
E-Commerce is not for the lazy. Retail is not for weak.
There is nothing passive about the income we generate at PT. Nectico. It’s all very active. I’d liked to dispel some of the myths around eCommerce and this article will try to do just that.
Background
In the era of free trade like today, organizations are required not only to compete locally in the national, but also internationally. In order to prepare for the globalization era, every organization must have a competitive advantage that can be used as a weapon to sustain the existence and advantages of the organization compared to other types of organizations.
The use of the Internet and the high ownership of smartphone devices among the public do not necessarily make online shopping a Prima Donna idea that can be realized instantly. The facts are the small number of transactions, payment methods that have not been maximized, and geographical factors that make the role of logistics difficult. However, there is a greater and more noble spirit to continue to work hard for a more ideal ecosystem. Namely the market potential for all parties involved to overcome various challenges together. In a global scope, the ideal eCommerce industry continues to be pursued. Meanwhile in Indonesia, the characteristics of the market and its geographical conditions present complex challenges in the logistics vertical.
Fundamental factors must be perfected to support consumer confidence in changing offline shopping habits to online.
There are two things that to be able to face real challenges:
- Acceleration of technology adoption by logistics service providers in order to provide more transparent data presentation and increase the productivity of the logistics chain.
- Standardize data transfers between logistics service providers and payment service providers, in addition to security reasons regarding transaction transparency, this also realizes closer and real-time inter-bank transfers.
The eCommerce industry in Indonesia is dynamic with many players from within and outside the country. The ecosystem in this industry has also been increasingly formed so that it can predict the potential magnitude of the digital economy in the eCommerce sector. The eCommerce map of Indonesia ranks the big eCommerce players based on the average website / apps visitors in each app ranking, social media followers, number of employees, etc.
Just imagine, if you want to shop for music CD’s, the option is to buy them at the nearest CD shop or shop online.
What do you think will be your consideration?
- Availability of goods. This will be the first thing to check.
- Price will be the second thing to consider. In this phase, buyers will compare prices, this is like a game that talks psychologically, the amount of satisfaction obtained is doubled if the buyer can get goods at a lower price.
- How to get goods using a payment mechanism with an easier process.
- Time to get it.
The four points above will usually be points of consideration for prospective buyers in deciding to buy an item, then these points will become the basis for the buyer’s trust in a store.
“Trust is the main foundation in the success of a store in building a reputation.”
According to research data, since 2011 there has been a flood of online companies that focus on eCommerce. The Marketeers magazine happens to be releasing a new term for online store provider site shopping, as a nickname for shop customers who use increasing social media platforms such as Facebook, Instagram, etc. Even the multiply which was once known as the Blogging platform has turned to an online store provider by combining the internal network function among users with an online shop facility called Social Commerce. Source : @Medium — by Edwin SA
Has a E-Commerce Company Gained Popularity?
To be honest, I’m not really sure. Why is that? Because in my observation, many eCommerce companies are still having problems building trust for their services to the public. Some eCommerce services have strong financial reserves and are busy promoting, but the foundation that must be built is public trust. Too much exposure without a solid foundation will accelerate the backlash against their brand services.
Benchmark
This time we will discuss in more detail about the eCommerce competition in Indonesia, namely between Shopee VS JD.ID
— Shopee
Shopee is a new eCommerce company in Indonesia. Although Shopee has only been developing in Indonesia for almost five years, Shopee claims to have more than 50 million active listings. Apart from that, Shopee was also ranked “Top 1 Shopping App” on the Play Store and App Store over the past few months.
Shopee strategy in the eCommerce business deserves thumbs up. The reason is, from the results of my research on eCcommerce in Indonesia, it is revealed that Shopee is the most popular eCommerce and the most frequently used by users this year.
What are the strategies? Let’s look at the following description:
— Trending Marketing Techniques —
Shopee uses things that are viral or trending to become marketing content materials. For example, with the *babyshark soundtrack… * That way, it becomes easier for the public to remember the brand. (Undeniably, most of the people reading the above words will read it in a Baby Shark tone. Shopee uses things that are currently viral or trending to become its marketing content material. This makes it easier for people to remember the brand. Evidently, this ad won the Most Memorable category at the 2017 Bright Awards Indonesia.
According to Shopee, the key is that advertisements must contain well-known, relatable, and well-targeted content without making people think.
— Using The Right Media —
Since its inception, Shopee has focused its business on mobile applications. This brand has become known as the pioneer of mobile shopping activities. This strategy is implemented based on research from e-Marketers which states that mobile phone users in Indonesia are growing rapidly compared to other countries in Southeast Asia. As estimated, of the 200 thousand orders per day, 90% of them come from mobile applications.
— Economical Promo Results —
Here comes the Shopee weapon that many consumers love. Until now, Shopee still provides promos in the form of free shipping for its users. Postal fee is given with a certain purchase limit. Even though the nominal doesn’t look big, for potential consumers, free shipping can be an attractive attraction.
— Lowest Price Guarantee —
Price is the main factor that consumers consider before buying something. This is what Shopee takes advantage of. To be able to compete with other marketplaces, Shopee uses campaigns.
“Cheapest Price Guarantee, Double Money Back.”
This guarantee is what makes Shopee users not think for a long time to make transactions there. To imitate a similar strategy, users can do a lot of research to get the cheapest supplier, so they can provide the lowest price too. That way, users can compete with businesses in similar fields.
— Have a Clear Target Market —
Shopee next strategy is to have a clear target market. Shopee market priority is women. This is because eCommerce users in Indonesia are dominated by women, especially young women. Therefore, Shopee focuses on women’s needs, such as women’s beauty products and fashion. Then develop by completing their products with the various needs of all family members in society.
***
“So, I created a business process from the Shopee market. I used the Business Model Canvas (BMC) technique for my mindset in designing the results of business process research in eCommerce, then I was able to determine important points in the business such as; resources, activities, the relationship to be established with related parties, income, and expenses that must be spent.”
— JD.ID
JD.ID is an eCommerce that works on the Indonesian market. JD.ID itself focuses on maintaining the authenticity of the products on their platform. JD.ID has a slight difference compared to other eCommerce establishments in Indonesia such as Shopee, Lazada, Tokopedia, etc.
JD.ID also operates two different business models. Most of the products they sell, about 90% are products that they own Business to Constumer (B2C). The rest are products owned by merchants who work with them Marketplace — Customer to Customer (C2C).
When viewed in terms of business opportunities, this physical store will offer a different way of shopping. In recent years, there have been many changes and innovations in online stores, while offline retail stores have not changed. With the presence of the JD.id physical store, it is hoped that a change will occur. At this physical store, payments are made by using the JD.id application.
In terms of marketing, goods are also much more profitable because sellers do not need to pay high costs for promotions. However, there is also another analysis that proves that the construction of a physical shop from JD.ID makes customers more confident and courageous to buy a product. This doesn’t mean that with online stores in Indonesia, physical stores in Indonesia have decreased.
When viewed from the target market in big cities, namely plazas and malls. The mall still provides physical stores inside the mall. With this opportunity, this makes JD.ID able to increase the source of income even more. Customers are also more comfortable shopping by being able to see products directly. The payment method is also made easier and is different from other physical stores. Payment method without cashier. And access using faces or using Artificial Intelligent (AI). This is a plus that can be followed by other platforms.
So, I created a business process from the JD.ID market. I used the Business Model Canvas (BMC). Let’s analyze together.
Analysis of Benchmark for Behavior in Shopee & JD.ID Mobile Apps
The difference between when purchasing an item. When the user JD.ID wants to buy an item, the process is almost the same as Shopee, it’s just that I take a little difference from the two. Namely, when the buyer has just pressed the button Buy and the Shopee application will switch to the cart page, while the JD.ID application does not need to display the cart anymore, because the application focuses on that one item that was purchased by the user. The second difference is on fourth point on the analysis behavior and design pages.
And then finally, Thank you for the reading, guys! I hope you enjoy for this! If you feel this helps, please give me a round of claps and thoughts or your feedback in the comments below, I’d love to hear from you.
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