Indonesia confirms its position as one of the most dynamic e-commerce markets in the world. YouGov's August 2025 research ranked Indonesia second out of 55 global markets in terms of online shopping preferences, only behind China and above India. 

"E-commerce in Indonesia is growing at an extraordinary pace. However, the growth of transactions and users goes hand in hand with changing consumer preferences," said Edward Hutasoit, General Manager of YouGov Indonesia & India, in a statement on Tuesday (16/9/2025).

YouGov is a global research organization with independent consumer panels in over 55 countries and more than 300,000 respondents. Combining daily data collection and cross-generational analysis, YouGov delivers not just numbers, but meaningful insights into the motivations that shape consumer behavior.

Edward explained that consumers are now more discerning and selective, with greater demands for value for money, speed of delivery, and personalization.

The main reasons Indonesian consumers choose online shopping are lower prices (68%), more choices (57%), promos or discounts (48%), ease and convenience (47%), and delivery services (46%). In the last four years, online shopping preferences have also increased in a number of key categories, namely clothes and shoes by 18% and music, videos and books by 15%.

Marketplaces remain the main channel for consumers to search for products. However, channel preferences differ by generation. Gen Z relies more on influencers, Millennials on product reviews, while Gen X on family or friend recommendations.

YouGov's research also shows that value for money is an important factor in online shopping decisions. Consumers consider product price, shipping costs, delivery speed and shopping experience.

Two out of three respondents cited high shipping costs and long delivery times as major concerns, while 79% always look for deals when shopping online.

Free shipping is the most sought-after incentive for consumers, in line with concerns over shipping costs. YouGov's research also found that one in four respondents think product recommendation algorithms are still not up to scratch, although the majority are more responsive to personalized ads.

Deputy Chairperson of the Indonesian E-Commerce Association (idEA), Budi Primawan, believes that YouGov's research results are in line with the reality on the ground. According to him, online shopping has become part of people's daily lives post-pandemic and will not be abandoned even though offline shopping activities have increased again.

" Online shopping will not disappear, because we ourselves have experienced digital transformation," Budi said.

It is undeniable that promos and free shipping are still the main factors that drive transactions. Budi gave an example of the National Online Shopping Day (Harbolnas) event, where free shipping was listed as the main reason for consumers to shop.

In the event, Budi said that platforms still compete through the amount of promos. "Even so, in the future we must slowly start encouraging consumers to buy because of the quality of products and services," he said.

Although promos play a very significant role, various marketplaces have tried various strategies to attract consumers. Among other things, presenting international products exclusively for certain market segments. "But, in the end of the day, at this time, the most important thing is still the promo," he said. 

In addition, Budi believes that platforms are now using all methods to reach as many consumers as possible. Starting from influencers, product reviews, and word of mouth, to utilizing online video content which is becoming more popular. According to him, these factors will continue to be utilized by e-commerce in formulating product marketing strategies.

In line with YouGov's research, online video consumption in Indonesia is quite high, especially for entertainment, comedy and culinary content.

Each generation has different preferences. Gen Z places fashion and beauty second after entertainment, Gen X places health and fitness third, while Millennials place business and finance fourth.

As such, YouGov believes video content can be an effective marketing channel for brands and e-commerce platforms. Culinary content relates to the promotion of groceries and kitchenware, fashion and beauty content to products relevant to Gen Z, while financial content can be associated with lifestyle products and daily necessities.

Still price oriented consumer

Director of Digital Economy at the Center of Economic and Law Studies (Celios), Nailul Huda, believes that Indonesian consumers are still dominated by price-oriented behavior. "And these are rational buyers, where price is the most important factor in purchasing goods, especially in the digital economy," he said.

According to Huda, easy access to price information allows consumers to quickly compare products between stores and platforms.

Due to such consumer characteristics, it is natural that platforms continue to rely on discounts, free shipping, and various forms of promos in expanding market share. Huda added that the practice of burning money was particularly high during the early days of the e-commerce boom in Indonesia, when platforms were trying to form valuations to attract investors. "With that, I am not surprised that our e-commerce consumers are among the largest in the world," he said.

According to Huda, the shift to value for money has not been significant so far. Consumers still place price as the main factor, even when platforms provide original products from official stores.

"Many are competing to offer original products, but, yes, they will eventually lose out to cheaper goods," he said. This shows that price is still the main determinant for consumers to buy goods.

However, Huda predicts that promo strategies will become more selective in the future. Discounts will no longer be given evenly, but rather directed at new customers or loyal customers.

"This trend has begun to show, not all buyers can enjoy free shipping or discount programs anymore. In the future, promos can even be subscription-based, only available to subscribers for a fee," he said.

On the other hand, platforms will also continue to look for new sources of funding to maintain competitiveness. According to Huda, one way to do this is by charging additional fees charged to sellers, consumers, or even both. He expects this scheme to continue to grow as a consequence of the platform's need to maintain flow while supporting promotion.