Characteristics and Appeal of Shopee, a Popular E-Commerce Platform in Indonesia
- Publish
- 2022/09/01
- Update
- 2025/08/16
- You can read this article in 6minutes
Although relatively unfamiliar to Japanese people, Shopee is a highly popular e-commerce platform in Indonesia. It is the most visited e-commerce platform in the country, recording 237 million visits in September 2023.
This article provides an overview of the key features of Shopee, as well as the most popular product categories on the platform.
Source: databoks “Pengunjung Shopee Makin Banyak, Bagaimana E-Commerce Lain?”
– from vehicles to drivers, all arranged for you.
● Interpreter arrangement: from USD 170/day
● Proxy obtaining appointment with local subsidiary (per company): USD 200/company
What is Shopee?
Shopee is the largest e-commerce platform in Southeast Asia and Taiwan.
Established in Singapore in 2015, Shopee now operates in countries including Malaysia, Thailand, Taiwan, Indonesia, Vietnam, the Philippines, Brazil, and Mexico. In Indonesia, the company has grown by increasing its visibility through SNS advertisements on platforms like Facebook and Instagram, as well as television commercials, and by holding regular large-scale sales events that attract consumers.
Shopee has also garnered attention by featuring global stars such as footballer Cristiano Ronaldo and international movie star Jackie Chan in its TV commercials.
As a comprehensive e-commerce platform in Indonesia, Shopee is among the most popular alongside Tokopedia. Its live shopping function is also highly favored. Based on recent data such as monthly download counts, Shopee currently shows greater momentum than Tokopedia.
Precautions when conducting an on-site inspection in Indonesia
Some visitors consider, "My primary purpose is to conduct maintenance work at the factory, but the visa application process appears cumbersome. I will simply enter on a Visa on Arrival (VOA) and carry out the work discreetly."
However, there have been numerous cases where entering without the appropriate visa for the intended activities has resulted in significant legal and operational issues. It is therefore strongly advised to obtain the correct visa prior to travel.
Here are the types of visas and their purposes.
Benefits of Using Shopee
Benefits for Sellers
Zero Fixed Costs
Shopee charges no initial fees or monthly usage fees. Since there are no so-called “fixed costs,” sellers can open a store with low financial risk.
Abundant Free Promotions
Shopee offers various free promotional campaigns that do not require advertising costs, including periodic large-scale discount events similar to “Amazon Prime Day.”
Live Commerce is Popular
Shopee provides a live streaming service called Shopee Live, allowing sellers to showcase their products in real-time.
In recent years, live commerce—which enables interaction between viewers and streamers—has gained popularity. Depending on how it is utilized, it holds potential for significantly boosting sales.
Robust Support System
When encountering any issues, sellers can contact Shopee Japan and receive support in Japanese.
In addition, seminars and workshops are frequently held to explain how to manage store accounts, list products, and operate accounts effectively to increase sales. Shopee provides a comprehensive support structure.
Benefits for Customers
User-Friendly and Simple UI/UX
Shopee features an intuitive and easy-to-use interface, allowing users to smoothly search for products and navigate various functions.
Shopee Social Feature: “Shopee Feed”
The Shopee mobile app includes a social media feature called “Shopee Feed,” where users can follow their favorite brands and write reviews of purchased products—making shopping more convenient.
Secure Chat Functionality
Before making a purchase, customers can use the chat function to communicate with sellers. This feature helps clear up any questions in advance, enabling purchases with confidence.
Shopee Games
Shopee’s mobile app also includes online games. Points earned through gameplay can be converted into coins and used toward product purchases. In the first half of 2020 alone, Shopee games were played more than 10 billion times.
Wide Range of Features
In addition to e-commerce, Shopee offers services such as the electronic money system “ShopeePay” and the food delivery service “ShopeeFood.” With the Shopee mobile app, users can access a wide variety of services.
For those seeking information on establishing a corporation
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Drawbacks of Using Shopee
Drawbacks for Sellers
Strict Regulations
Shopee enforces strict rules regarding product listings, especially for food and cosmetics. Sellers must exercise caution, as violations can result in suspension of product listings or even account deactivation.
Requirement to Respond to Chats
Since Shopee features a chat function, sellers must respond to customer inquiries one by one. While this is manageable when customer numbers are low, it becomes necessary to establish a customer service system as the customer base grows.
Furthermore, because the chat function uses the Indonesian language, it may be difficult to manage communication if your team does not include staff proficient in reading and writing in Indonesian.
Drawbacks for Customers
Limited Number of Partner Banks for Payments
Compared to other e-commerce platforms, Shopee has a limited number of partner banks. For instance, Lazada supports payments through all banks, but Shopee currently supports only seven (SeaBank, BCA, Mandiri, BNI, BRI, BSI, and Bank Permata).
Complex Free Shipping Policy
Shopee generally offers free shipping for purchases over IDR 30,000 (approx. USD 1.90*) as a standard. However, there are exceptions that make this system complicated:
- Some stores require a minimum purchase of IDR 50,000 or IDR 120,000 (approx. USD 3.20 or USD 7.70*) for free shipping
- Under certain payment methods, free shipping may not be available during specific periods
Other unclear conditions also exist, and this complexity poses a disadvantage for customers.
*Exchange rate note: Approximate conversions are based on the prevailing market rate of USD 1 ≈ IDR 15,800.
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Domestic corporation
Recruitment Agency
We set up a domestic capital company in Indonesia using the name of a former employee from Japan’s Specified Skilled Worker program. At first, communication was smooth, but once the business became profitable, they claimed ownership, seized bank accounts and contracts, and disrupted client relations. A contract was in place but ineffective, leaving us to regret relying solely on trust.
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Foreign-owned corporation
Machinery Manufacturer
We hired a local consulting firm to set up our foreign-owned company in Indonesia, but responses were slow and explanations kept changing. Repeated requests for extra documents and shifting requirements disrupted our schedule, and the process took nearly a year, delaying our business launch. We learned the importance of clearly defining project management and responsibilities in the contract.
Popular Product Categories on Shopee
Fashion and Beauty Categories Are in High Demand
Next, we introduce the most popular product categories on Shopee.
Image source: Created by our company based on katadata “Daftar Produk Terlaris di Shopee, Tokopedia, Blibli hingga Lazada”
Fashion ranks first, followed by beauty in second place—categories related to personal appearance occupy the top rankings, indicating a strong consumer interest in appearance.
Shopee Is Popular Among Women
In fact, compared to other e-commerce platforms, Shopee is characterized by having greater popularity among women than men. Let’s take a look at the data.
“Which e-commerce platforms are you interested in?”
Source: Populix “5 E-commerce Indonesia Paling Banyak Dikunjungi Menurut Data”
This graph summarizes responses to the question “Which e-commerce platforms are you interested in?” based on gender, from a 2020 survey.
It clearly shows that Shopee attracts far more interest than other platforms. Additionally, Shopee is notably more popular among women than men—this is a unique characteristic that is rarely seen in other e-commerce platforms.
Therefore, when listing products on Shopee, focusing on items targeted at women could be a key strategy for success.
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About the E-Money Service “ShopeePay”
One of Shopee’s major strengths is its proprietary e-money service, ShopeePay. Below, we introduce the penetration rate and key features of ShopeePay.
Popularity of ShopeePay
“Most Frequently Used E-Money Services in Indonesia”
Source: GoodStats “Ini 10 E-Wallet yang Paling Sering Dipakai Masyarakat Indonesia Tahun 2022”
According to a 2022 survey by DailySocial, 76% of Indonesian e-money users reported that they frequently use ShopeePay, ranking it fourth overall.
Considering that ShopeePay launched in 2020—two to four years later than the top three competitors (Gopay, DANA, and OVO)—its fourth-place ranking, closely behind the third, can be seen as a significant achievement.
In addition, according to 2021 data, ShopeePay had reached 10 million monthly active users.
Source: TLD by MW | DO “Who are leading digital wallets in Indonesia?”
Features of ShopeePay
Available at Offline Stores
The name ShopeePay may suggest it is exclusively for Shopee, but it actually functions like a general e-wallet and can be used for dining and shopping at physical stores. Its broad usability both online and offline is one reason for its growing user base.
Abundant Perks
Another key feature of ShopeePay is its wide array of benefits, which exceed those of many other e-wallets. For example, using ShopeePay for payment can earn users free shipping coupons or 50% cashback. Discounts that are typically 30% with other services can reach up to 50% when using ShopeePay.
Supports Money Transfers
With ShopeePay, users can perform the following transactions:
- Transfer funds to other Shopee users
- Transfer funds to bank accounts (available only to users who have registered an official ID)
- Receive refunds from Shopee stores
In these ways, ShopeePay can function as a simplified bank.
We create a WhatsApp group, allowing you to contact us anytime for free if any issues arise during your business trip. Unexpected troubles can occur during on-site visits, but with our team-based support, we can resolve problems quickly and efficiently.
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●Creative agency
I traveled without arranging an interpreter, but when I faced difficulties dealing with the local police, they came to my aid.
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●Recruitment agency
When I suddenly needed a conference room, I truly appreciated that they arranged one on my behalf.
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●Cosmetics manufacturer
After finishing drinks with colleagues late at night and being unable to find a taxi, they arranged a car for us, which was a great help.
Shopee: An Indispensable Part of Daily Life in Indonesia
In this article, we have focused on explaining the advantages, disadvantages, and key features of Shopee, a leading e-commerce platform in Indonesia. Shopee has become an essential service for many Indonesians and still holds significant potential for future growth.
For companies in Japan struggling with stagnant domestic sales and seeking solutions, or those aiming to actively expand overseas, Shopee offers a promising gateway for entering the Indonesian e-commerce market.
We create a WhatsApp group, allowing you to contact us anytime for free if any issues arise during your business trip. Unexpected troubles can occur during on-site visits, but with our team-based support, we can resolve problems quickly and efficiently.
