Revolutionizing Indonesian SMEs: A Comprehensive Analysis of

Shopee Online Marketplace's Promotional Strategies in

Driving Sales Growth

Indra Firdiyansyah

, Riki

and Rina

Faculty of Economics and Business Maritime, Raja Ali Haji Maritime University, Tanjungpinang, Indonesia

Dian Nuswantoro University, Semarang, Indonesia

Management Study Program, Galileo College of Economics Batam, Indonesia

Keywords: Strategy, Promotion, e-Commerce Trends.

Abstract: With the rapid advances in technology such as the internet, it has become increasingly sophisticated and the

growing ease of access has increasingly attracted the public's attention. This research aims to produce a

systematic, factorial, and accurate analysis of the characteristics, facts, and relationships between the

phenomena studied. The method used is a qualitative method. The research results illustrate that the internet

is able to encourage increased sales of MSMEs today. With easy internet access and implemented promotional

strategies, MSMEs have a strategy for utilizing marketplaces and social media to increase sales. Shopee is a

forum that operates in the online market sector. The online market (Shopee) provides convenience and

comfort for sellers and buyers. The strategy of utilizing the Shopee marketplace is currently able to increase

sales for MSMEs in Indonesia. One example is the WomenWear store.

1 INTRODUCTION

The development of the times is increasing over time.

The availability of technological advancements can

make Shopee, one of the online marketplaces, the

market leader in providing access and convenience

features that can be used to promote sales strategies.

Technology is increasingly advanced, making it

easier for people to find their needs very quickly and

precisely does not take a lot of time and can be done

anytime and anywhere. With the internet and a

container in the form of the Shopee online

marketplace, it currently plays an important role in

the tools needed to support the interests and needs of

today's society. MSMEs conduct an analysis first in

order to create a good promotional strategy for their

respective stores.

Indonesia is a country where the majority of

people use the internet to search for online markets,

which is necessary for business purchases and sales

transactions. The internet is utilized not only for

communication purposes but also for transactions,

which are commonly carried out through e-

https://orcid.org/0000-0002-4246-7907

commerce. E-commerce is a product of an

information technology system that was developed to

meet needs and create competitiveness, especially in

terms of promoting and selling various types of

products/services across regions or even across

countries (Rerung, 2018).

Shopee is a platform for online shopping or e-

commerce that was initially launched in Singapore.

However, it is quite popular among Indonesian

people. Especially for people who like online

shopping at low prices. Shopee is also famous for its

many interesting promotions often issued starting

from the Shopee 12.12 flash sale to free shipping

available under certain conditions. Shopee is one of

the most popular online marketplaces among people.

For both teenagers and adults, this application is an

application for online mobile buying and selling

developed in Indonesia (Andisya et al., 2019). This

matter This is shown by the relatively large level of

downloading of the Shopee application reached 50

million downloads, while in Indonesia Shopee has

been downloaded 18 million times by active users of

Firdiyansyah, I., Riki, . and Rina, .

Revolutionizing Indonesian SMES: A Comprehensive Analysis of Shopee Online Marketplace’s Promotional Strategies in Driving Sales Growth.

DOI: 10.5220/0012606800003798

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd Maritime, Economics and Business International Conference (MEBIC 2023) - Sustainable Recovery: Green Economy Based Action, pages 49-52

ISBN: 978-989-758-704-7

more than 60 million people, and there are still

750,000 active sellers (Zahrah et al., 2022).

The quality of service offered by Shopee

application users has a significant influence on

consumer behavior. Shopee e-commerce always tries

to maximize good service for sellers and buyers.

Offers facilities such as efficiency, fullfillment,

reliability, privacy, responsiveness, compensation,

and contact (Widyanita, 2018).

In Indonesia, the Shopee online marketplace

officially entered on December 1, 2015 and began to

move actively to progress until now. Even though it

is still new, Shopee's development is very far rapid,

this is evidenced by the amount of Shopee

transactions in the third quarter of 2018 written at US

$ 2.7 billion or Rp 39.4 trillion. This budget increased

152.7% from the same era in 2017 around US $ 1.1

billion (Setyowati, 2018). In the second quarter of

2022, Shopee had an average of 131.3 million website

visitors per month. In August 2022 Shopee's official

website received 190.7 million visits from

Indonesians. This figure continues to increase

compared to the previous month, (according to

Similarweb data). Shopee services saw a 150%

increase in the number of users compared to the third

quarter of 2017. In Indonesia, the Shopee app has

been installed 74 million times through Google

Playstore or Appstore. This states that the system

used by Shopee is very good, Shopee also continues

to make breakthroughs and new features in terms of

the development of its application.

Table 1: Visit Calculation.

Marketplac

Situs Web

(Juta Visitor

per Bulan di

Indonesia

)

Aplikasi (Juta

Visitor per

Bulan di

Indonesia

)

Total (Juta

Visitor per

Bulan di

Indonesia

)

Shopee 126,99 834,52 961,51

Sources: iPrice, SimilarWeb

One of the things that attracts the Shopee online

marketplace is the number of massive promos held

such as, Free shipping of Rp.0 every once a month at

the beginning of the month on 01-01-2023, the next

month on 02-02-2023, and so on. All stores hold

Flash Sales of thousands of products, hold prices per

product at Rp.1 only, and there are Shopee Live

discount parties etc. The existence of these big

promos has increased the enthusiasm of the

community in shopping for all the needs they need

and want. Shopping at the Shopee online marketplace

offers all the necessities that are sought after, and is

affordable, competing with other MSMEs to attract

more buyers. Therefore Shopee is the right media

partner for sellers to promote their products. Shopee

provides attractive features and is easy to promote all

products, so many MSME partners are moving to start

offering their products through this Shopee online

marketplace.

2 LITERATURE REVIEW

2.1 Definition of Strategy

A marketing strategy is a plan that outlines a

company's expectations of the impact of various

marketing activities or programs on demand for its

product or product line in a particular target market

(Tjiptono, 2017).

The development of strategic management has led

to the definition of strategy as more than just a way to

achieve a goal. Because the concept of strategic

management also includes setting various goals,

which are expected to ensure the maintenance of the

company's competitive advantage. According to

(Marrus in Umar), strategy is defined as a process of

determining the plans of top leaders who focus on the

long-term goals of the organization, accompanied by

the preparation of a way or effort how these goals can

be achieved. Strategy is defined specifically as an

action that is incremental (always increasing) and

continuous and is carried out by seeing strategy only

as one part of the plan, it turns out that it cannot

provide a satisfactory explanation of various strategic

phenomena in the business world. Therefore,

Mintzberg expanded the concept of strategy and

defined it by paying attention to various dimensions

and concepts of strategy. Mintzberg named it the "5P

Strategy", namely: a. Strategy as a plan (Plan). In this

strategy, there are two very important characteristics

of the strategy, namely the first, the strategy is

planned in advance consciously and deliberately

ahead of the various actions that will be taken based

on the strategy made.

The success of the strategy is determined by a

thorough understanding of the concept of strategy and

other related concepts. The concept of strategy

according to Chandler quoted by Sedarmayanti is as

follows. a. The company takes steps to outperform its

competitors by maintaining labor expertise and

resource capabilities. b. Competitive advantage is due

to the strategic choices made by the company to seize

market opportunities.

MEBIC 2023 - MARITIME, ECONOMICS AND BUSINESSINTERNATIONAL CONFERENCE

2.2 Definition of Promotion

Promotion according to Pandji Anoraga is an

expression in a broad sense about activities actively

carried out by companies (sellers) to encourage

consumers to buy the products offered. According to

Kotler and Armstrong, promotion is an element used

to inform and persuade the market about new

products or services in the company, right by

advertising, personal selling, sales promotion, and

publicity. Based on the above understanding,

promotion is the active action of a company in

introducing products to consumers so that consumers

are interested in buying their products.

2.3 Definition of Marketplace

Marketplace, according to Opiida (2014), is an

internet-based online media where business activities

and transactions between buyers and sellers are

carried out. Buyers can find as many suppliers as

possible with the desired criteria, so as to get

according to market prices. Meanwhile,

suppliers/sellers can find out companies that need

their products/services.

According to Anonymous, Marketplace is an E-

Business model that deals with sellers and buyers.

Marketplace in Indonesia is one of the media driving

the national economy to face the era of globalization.

For this reason, it is necessary to develop a

Marketplace that is organized, reasonable and

efficient.

2.4 Definition of Sales

The definition of sales, according to Arman Hakim

Nasution, is an activity related to the company and

consumers to achieve the ultimate goal of marketing.

Sales can be said to be the spearhead of the company

to win. According to Swastha and Irawan, sales

involves the science and art of persuading people to

buy the goods or services offered. Based on the above

definitions of sales, it can be concluded that

companies carry out sales activities for the purpose of

making profit.

3 RESEARCH METHODOLOGY

The use of a qualitative approach method in this

research has important implications. First, this

approach allows researchers to describe data in a

structured and original way. Through in-depth data

collection techniques, this research can obtain a deep

understanding of the nature and relationships between

the data studied. Second, through qualitative data

analysis, this research can provide a concrete and in-

depth explanation of actual social conditions. By

compiling words based on direct information from

MSME sellers on Shopee, namely the WomenWear

Store, this research can present an accurate picture of

the strategy for using the Shopee online market to

increase sales in Indonesia. The social and economic

context that influences the decisions and actions of

MSME sellers can be understood by researchers using

this approach. Additionally, a qualitative approach

allows researchers to capture the nuances and

complexities in interactions between sellers and

consumers on the Shopee platform. The identification

of factors that influence the success of online sales

strategies, such as consumer preferences, challenges

faced by sellers, and effective marketing tactics, can

be achieved by obtaining direct insight from sellers.

Thus, the results of this research not only

contribute to academic understanding of online sales

strategies but also have high practical relevance.

Information obtained through a qualitative approach

can be used as a basis for developing better policies

and business strategies, not only for WomenWear

Stores but also for other MSMEs in Indonesia who

want to increase their sales through online platforms

such as Shopee..

4 COPYRIGHT FORM

Solemnly declare that the manuscript submitted

above is authentic, self-made, not adapted or

translated from other works, and has not been

published and/or being processed in any form of

media. I am willing to take full responsibility if there

are certain parties who feel aggrieved or demand a

lawsuit in the future by the demand a lawsuit in the

future by the publication of this manuscript.

5 CONCLUSIONS

In this research, researchers conducted a

comprehensive analysis of promotional strategies in

the Shopee online market with a focus on their

influence on the sales growth of MSMEs in

Indonesia. Through careful analysis of promotional

strategies on the Shopee Online Marketplace, this

research not only provides a comprehensive picture

of how using this platform can change the sales map

for MSMEs in Indonesia but also highlights the

Revolutionizing Indonesian SMES: A Comprehensive Analysis of Shopee Online Marketplace’s Promotional Strategies in Driving Sales

Growth

importance of developing promotional strategies that

are relevant and responsive to the market. The

importance of understanding consumer preferences

and behavior in responding to promotional strategies

at Shopee is highlighted in this research. MSME

sellers who can properly understand consumers'

wants and needs can develop more effective and

attractive promotions, thereby increasing the

attractiveness of their products in the online market.

Our findings provide valuable insights for MSME

sellers and other stakeholders, opening up

opportunities to increase their business growth

potential in this digital era..

REFERENCES

Andisya, D. N., Mayasari, & Yanti, T. (2019). Semiotic

Analysis of the Meaning of Sexy in Advertising Shopee

Blackpink Version Dara Novita Andisya Tanjung

(Unsika Communication Science Student). JPR

Medcom: Journalism, Public Relations, Media and

Communications Studies Journal, 1(1), 66–71

Hamdani, Agus Umar and Mubarak, Rakha Luri, "E-

Commerce Model with Web Engineering Method to

Support Product Marketing at XYZ Pet Shop",

Proceedings of the 2019 Unisbank Multi Disciplinary

Science National Seminar.

Handayani, "Design of E-Commerce Based Sales

Information System Case Study of Toko Kun Jakarta,"

ILKOM Scientific Journal, vol. 10, pp. 182-189, Aug.

2017.

Lenggang Kurnia, I. D.2019.The Effect of Product Quality,

Price and Promotion on the Shopee Marketplace.

Thesis majoring in Economics, Faculty of Economics

and Islamic Business, Uin Sunan Ampel.

Marsha Karina. 2019. The Effect of E-servicescape Online

Marketplace Shopee on Perceived Value and Customer

Satisfaction, and its impact on customer loyalty.

Maksipneur Journal

N. A. Yati, E. Fernando, and A. Rahim, "Designing E-

Commerce Applications at the I'M Collection WTC

Jambi Store," Proccesor Journal, vol. 12, pp. 1021-

1035, Oct. 2017

Rerung, R. R. (2018). E-Commerce Creates

Competitiveness through Technology Information.

Budi Utama.

Sudaryono, S., Rahwanto, E., & Komala, R. (2020). E-

Commerce Drives the Indonesian Economy, During the

Covid 19 Pandemic as a Modern Entrepreneur and its

Effect on Offline Business. Journal of Management and

Business, 2(02), 110-124.

Septianus Angga Wicaksono. 2018. Analysis of Revenue

Factors that affect MSME Revenue in the marketplace.

Thesis, Jurudsn Economics and Business, Faculty of

Economics, Diponegoro University.

Tayibnapis, A. Z. (2021). The rise of MSMEs in Indonesia.

Jakad Media Publishing.

Vanni, K. M. (2022). Sharia Marketing Strategy "Burn

Money" at E-Commerce Company Shopee. Journal of

Economics and Business, 23(1), 16-27

Widyanita, F. A. (2018). Analysis of the Influence of

Shopee E-commerce Service Quality on Shopee

Indonesia Consumer Satisfaction for Fe Uii Students

Using Shopee. In Thesis

Zahrah, A., Mayasari, & Tayo, Y. (2022). The Effect of

Using Online

Shopping Applications on

Consumptive behaviour. 6(2), 3637–3643

MEBIC 2023 - MARITIME, ECONOMICS AND BUSINESSINTERNATIONAL CONFERENCE