THE INTERNATIONAL JOURNAL OF BUSINESS REVIEW (THE JOBS REVIEW), 4 (2), 2021, 191-202

Analysis of Indonesian Consumer Online Shopping Behavior

During the Covid-19 Pandemic: A Shopee Case Study

Wahyu Firmandani1, Anisa Fitri Sya’bania2, Fadlil Abdani3, Eltin Madani4

Vocational Faculty, Airlangga University, Surabaya, Indonesia1,2
Economic Faculty, Maulana Malik Ibrahim Islamic University, Malang, Indonesia3
Vocational Faculty, Airlangga University, Surabaya, Indonesia4

Abstract. Covid-19 affects and changes almost all aspects of life. Change is not only for awareness
to have a healthy lifestyle but also people's preferences in doing online shopping. Many indicators
influence changes in society in making decisions, especially in making online purchases. Because of
this, in this research the needs of people with changing preferences after Covid-19, Shopee as one of
the giant e-commerce in Indonesia must also adapt to existing conditions. This research was
conducted using a descriptive method based on the results of a questionnaire to several samples witk
purposive sampling of Indonesian society in metropolitan cities to obtain the findings and expected
results of this study. Apart from using primary data, this research is also supported by reliable
secondary data. The results of this study are to determine changes in people's preferences for online
shopping after the Covid-19 pandemic. The research is limited to a sample of Indonesian people and
Shopee as e-commerce platform. This research is expected to help Shopee, other e-commerce and
other online seller to understand changes in customer demand and perception during Covid-19 to
increase their sales and lead to customer satisfaction.

Keyword: covid19; perception; online shopping.

Article History. Received July, 2021. Revised October, 2021. Accepted December, 2021
Corresponding Author. [email protected]

INTRODUCTION

Covid-19 caused panic throughout the world, not only in terms of health but also spreading
to economic problems. The many uncertainties in the future have prompted most parties to
refrain from taking risky actions, both from the investment and consumption side, which
have a significant impact on their business and their survival. The death rate is also
increasing from day to day, even now several countries have experienced the second wave
of Covid-19. In Indonesia, the number of new cases and the number of victims who died is
still experiencing an increasing trend as shown in graph 1 and graph 2.

Graph 1. Covid-19 Infected Cases in Indonesia Graph 2. Covid-19 Death Cases in Indonesia
Source:https://worldometers.com, 2020.

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 WAHYU FIRMANDANI1, ANISA FITRI SYA’BANIA2, FADLIL ABDANI3, ELTIN MADANI4/Analysis of
Indonesian Consumer Online Shopping BehaviorDuring the Covid-19 Pandemic: A Shopee Case Study

Various countries in the world are experiencing economic pressures, even though there are
large balances in the Americas and Europe. Businesses from various business sectors are
also experiencing difficult times, the low level of consumer demand has made their position
more difficult. On the other hand, since this pandemic, people are increasingly paying
attention to health, hygiene and safety in their daily activities, including when making
shopping decisions or consuming certain products. This pandemic has brought people's
behavior patterns to the adaptation of new habits (New Normal). To minimize the possibility
of contracting this virus, people have begun to change their shopping patterns through online
shopping, as well as shifting shopping preferences. From previous research, It is known that
the e-commerce business is one of the beneficiaries due to shifting consumer preferences
during the pandemic, so that they make purchases through Shopee or other e-commerce.
Based on databox research, e-commerce users are projected to experience an increasing trend
with 212.2 million users in 2023, where the penetration rate is 75.3% of the total population
of the selected market.

Users and E-Commerce Penetration Rate in

Indonesia
80 250.000.000
60 200.000.000
150.000.000
40
100.000.000
20 50.000.000
- -
2017 2018 2019 2020 2021 2022 2023

Penetration Rate (%) Users (People)

Graph 3 Users and E-Commerce Penetration Rate in Indonesia

Source:https://databoks.katadata.co.id/, 2020.

Covid-19 is not certain when it will end. This pandemic is changing the mindset and habits
of consumers into a new habit known as the "New Normal". All elements of the economy
must be able to take advantage of the existing conditions not only to survive but to grow and
develop. Based on research by Anam Bhatti et al (2020), overall e-commerce sales have
increased due to covid-19, consumers avoid leaving the house, maintaining social distancing,
shopping from home and working from home.

E-Commerce and Covid-19

The spread of covid-19 limits the behavior of consumers who previously were able to make
physical contact through free direct (physical) trading, now leading to a situation that
encourages consumers to minimize physical contact and be more vigilant in direct
interactions. Based on Sirclo's research, 2020 there were 12 million new e-commerce users
during the pandemic in Indonesia. Pandemic has a significant impact on some products, but
not so significant impact on other products (Andrienko, 2020). The increasing use of e-
commerce in Indonesia is an opportunity for entrepreneurs, especially e-commerce, which
is the main game for online shoppers. Based on the data in the following chart,

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 THE INTERNATIONAL JOURNAL OF BUSINESS REVIEW (THE JOBS REVIEW), 4 (2), 2021, 191-202

VISITORS (MILLION)
95,5
100 85
80
60 31,4 22,7
40 18,7
20 4,8 3,1 2,8 2 1,8
0

Graph 4.Monthly Visitors to E-Commerce Sites (Quarter III 2020)

Source: https://databoks.katadata.co.id/, 2020.

There is an opportunity for a significant increase in market share in Indonesia, of course

global and Indonesian e-commerce entrepreneurs are competing to attract the attention of
potential shoppers, including Shopee, so that currently it is able to become the top e-
commerce with the highest visitors.

Marketing Mix
The concept of the marketing mix was introduced by Kotler and Keller (2012: 25) which
includes the 4Ps, namely product, price, place and promotion. These four formulas can be
combined by entrepreneurs / business people to attract consumer interest in order to solve
consumer desire problems which consist of 4C, namely customer solution, customer cost,
convenience and communication. Customer Solution reflects the market demand that is
expected to be fulfilled. Customer Cost is the rate charged to obtain a product or service. In
setting this rate, the company must consider the overall marketing strategy to be carried out.
This convenience includes convenience and comfort. In an era of technological advancement
like now, the ease and convenience in distributing the products or services offered is
becoming increasingly unlimited. This communication serves to give a meaningful
impression to potential consumers aimed at driving sales.

Consumer Behavior
Pandemics change the way consumers behave, 95% of GenZ and millennials have concerns
and cautions regarding this condition (Rachita Ota et al, 2020). This condition encourages
consumers to use the internet and make it a habit in their daily activities (Abiad, Arao, &
Dagli in Anam Bhatti et al, 2020). Even though this pandemic has had a negative impact on
the world economy, on the other hand, the e-commerce business has experienced a
significant increase. Based on research by Rudi Yanto et al (2020), Covid-19 accelerates
consumer habits towards digital trade which results in an increase in the cumulation of
consumers who shop online. Therefore, e-commerce companies must be able to take
advantage of existing opportunities to be able to compete in these conditions.

METHOD
This study intends to understand the mindset of Indonesian consumers towards online
shopping during the new habit adaptation period (New Normal) of the Covid-19 pandemic.
The research was conducted on Shopee as e-commerce with the largest users in Indonesia.
The data used in this study include primary data and secondary data. This study uses a
descriptive method on the results of the questionnaire and collected secondary data.

193 | The International Journal of Business Review (The Jobs Review) Vol.4 | No.2 | 2021
 WAHYU FIRMANDANI1, ANISA FITRI SYA’BANIA2, FADLIL ABDANI3, ELTIN MADANI4/Analysis of
Indonesian Consumer Online Shopping BehaviorDuring the Covid-19 Pandemic: A Shopee Case Study

The objectives of this study are to (1) Study the mindset of Indonesian consumers towards
online purchases from Shopee during the COVID-19 pandemic period; (2) Analyze what
main product ranges consumers buy from Shopee and which products are not in great
demand during this emergency period; (3) Study the marketing strategies being practiced by
Shopee to retain and assist customers during this pandemic.

Primary sources were obtained using questionnaires, while secondary data were collected
through online journals, articles and news. Research used purposive sampling that is limited
to Indonesian Consumers in the metropolitan cities include Jakarta, Surabaya and Makassar
which is presented sophisticated societies. The number of research samples was determined
as many as 74 people. Data collection was carried out with the help of Google Forms and
was carried out in January 2021.

In interpreting the secondary and primary data sources on the questionnaire results,
descriptive statistical methods are used to interpret all the questions on the questionnaire.
This method will separate a percentage based on the answers they convey on the
questionnaire. The respondents in this study amounted to 74 people with the demographics
of the respondent profiles shown as follows:4

Table 1. Demographics of Respondents Sample

Gender amount Percentage (%)
Man 28 38%
Women 46 62%
Age Group amount Percentage (%)
Below 20 11 15%
20-30 46 62%
31-40 15 20%
41-60 2 3%

RESULT AND DISCUSSION

GENDER AGE
Man Woman Below 20 20-30 31-40 41-60

3%15%
20%
38%
62%
62%

Diagram 1. Percentage of Respondents by Gender Diagram 2. Percentage of Respondents by Age

It is clearly reflected in table 1 and diagrams 1 and 2 that 62% of respondents are female and
the remaining 38% are male with the following age groups: 15% are under 20 years old,
62% are 20-30 years old, 20% 31-40 years old and the remaining 3% are 41-60 years old.

The mindset of Indonesian consumers towards online purchases from Shopee during
the COVID-19 pandemic period
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 THE INTERNATIONAL JOURNAL OF BUSINESS REVIEW (THE JOBS REVIEW), 4 (2), 2021, 191-202

From the sample of respondents, it is realized that the use of Shopee in Indonesia is already
very popular, so the questionnaire results show that before the pandemic 97% of respondents
had used online shopping through Shopee and the rest only 3% of respondents who had not.
Meanwhile, during the pandemic, the use of online shopping increased but was not
significant, around 99% of the total respondents, and the remaining 1% had not used Shopee
at the time of the pandemic. The condition after the pandemic, online shopping through
Shopee is projected to be the same as during the pandemic because based on the survey
results there is still 1 person who will not switch to trying to shop online through Shopee
during the pandemic or post-pandemic.

Table 2. Shopee consumers' mindset towards online shopping

before, during, and after the pandemic
Utilization Yes No
Before Pandemic 97% 3%
During Pandemic 99% 1%
After Pandemic 99% 1%
Source: primary data

Convenience of Using Shopee

60%

40%
57%
43%
20%
0%
0%
Yes Sometimes No

Diagram 3. Perception of comfort

Source: Primary Data

Consumers' perceptions of the convenience of using online shopping through Shopee can be
illustrated through diagram 3, which illustrates that 43% feel comfortable using Shopee
compared to shopping offline (shops / markets) and there are no respondents who are
uncomfortable with Shopee's online shopping services, even though the rest 57% of
respondents still feel that shopping online is sometimes more comfortable, but this does not
stop people's preferences for shopping offline (not frequent buyers).

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 WAHYU FIRMANDANI1, ANISA FITRI SYA’BANIA2, FADLIL ABDANI3, ELTIN MADANI4/Analysis of
Indonesian Consumer Online Shopping BehaviorDuring the Covid-19 Pandemic: A Shopee Case Study

PAYMENT METHOD
COD Digital Payment

4%

96%

Diagram 4. Payment Method Preferences

Source: Primary Data

Diagram 4 shows that the majority of respondents choose to use digital payments which
include: Bank transfer, Shopeepay, Debit / Credit Card, Indo / Alfamart and so on.
Meanwhile, the rest still prefer to pay in cash (Cash On Delivery / COD), which is 4% of
respondents.

Reason for Shopping in Shopee

50%
40%
46%
30%
36%
20%
10% 18%

0%
Information on prices and Minimal physical contact Easy and effortless
variety of products

Diagram 5. The Reason for Shopping Online

Source: Primary Data

Based on diagram 5, the majority of Shopee consumers (46%) shop online because they
think price information and product choices are more diverse, while 36% choose to shop
online because of easy access and do not require excessive effort, the remaining 18% prefer
to avoid contact during this pandemic, so they tend to shop online through Shopee.
Shipping Product Preferences
70%
60%
50%
40%
58%
30%
20% 36%
10%
0% 5…
minimum contact well sanitized proper packaging
Diagram 6. Shipping Products Preferences
Source: Primary Data

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Based on diagram 6, it is known that 58% of consumers focus on good product packaging at
the time of delivery, the remaining 36% of respondents focus on sterilizing packages that are
sent, and the remaining 5% hope that by shopping online during a pandemic, the packages
are few in the hands of people or minimum contact , so as to minimize the spread of covid-
19.

Consumer Purchase Preferences During Covid-19

During a pandemic, the preferences for products purchased by consumers are not necessarily
related to health or food needs. For Shopee consumers in Indonesia, diagram 7 shows that
online shopping preferences are most often made for fashion products. As many as 38% of
respondents admitted that fashion products were the items most often purchased online
through Shopee during the pandemic, while 20% and 15% of respondents admitted that
during the Covid-19 pandemic, they more often bought Health products and food
ingredients, while the remaining 8% and 4 % admitted that they often provide beauty and
electronic products.

Frequently Purchased Products

40%
30%
20%
38%
10% 15%
0% 4%
8% 15% 20%

Diagram 7. Products Purchased During Covid-19

Source: Primary Data

Marketing Strategy From Shopee To Attract Consumers

During the Covid-19 pandemic, Shopee implemented a marketing strategy to increase
customer engagement with the Shopee brand and to attract potential customers. Shopee has
a Shopee live feature that helps consumers determine which products to buy. In addition,
during this pandemic, Shopee also provides entertainment services as part of getting
opportunities for new consumers to do more activities at home during the pandemic with
several game features such as Shopee games and Shopee Liga. In fact, the marketing strategy
through Shopee Live is not well known by the public. Based on the survey results, it is known
that only 14% have ever used this feature as shown in diagram 8.

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 WAHYU FIRMANDANI1, ANISA FITRI SYA’BANIA2, FADLIL ABDANI3, ELTIN MADANI4/Analysis of
Indonesian Consumer Online Shopping BehaviorDuring the Covid-19 Pandemic: A Shopee Case Study

SHOPEE LIVE Does Shopee Live

Information Help?
Has Ever Has Never
No Yes

14%
20%

86% 80%

Diagram 8. The Use of Shopee Live Features Diagram 9. The Use of Shopee Live Features
Source: Primary Data

From the 14% of respondents who claimed to have used the Shopee live feature, the majority
of 80% admitted that the information obtained through Shopee Live really helped consumers
in determining which products to buy, while the remaining 20% felt the information did not
help in making product purchase decisions.

On the other hand, apart from being a shopping platform, during the pandemic, Shopee also
offered entertainment media services such as Shopee Games and Shopee Liga, although the
service was not optimal yet, Shopee entertainment media users were quite good compared
to the Shopee Live feature, namely 34% of respondents claimed to have used it. where 80%
used the entertainment media Shopee Games, 4% only used Shopee Liga, while 16% claimed
to have used both media as shown in diagram 11.

Entertainment Media Entertainment Media Used

Has Ever Has Never No Answer 80%

60%

40% 80%
34% 34%
20%

0% 4% 16%
Shopee
32% Shopee liga
games Both
1

Diagram 10. The Use of Entertainment Media Diagram 11. Entertainment Media Used
Source: Primary Data

From the findings above, there is some evidence to strengthen previous research that there
is an increase in the use of online shopping during the Covid-19 pandemic. However, this
increase is slightly different for Indonesian respondents, the majority before the pandemic
they were accustomed to using online shopping through Shopee, so that the increase in online
use before and after and after Covid-19 was not significantly affected. The productive age
group in Indonesia are very familiar with online shopping through e-commerce, Shopee is
one of the most visited e-commerce platforms. This can also be seen from the findings that
the majority of Indonesians feel more comfortable shopping through online (Shopee) rather
than coming or shopping at the offline market. although this does not result in them moving
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100% shopping online, because in some cases they still come to buy offline to shops and
markets. Technological improvements and also the conditions of the Covid-19 pandemic
also encourage an increase in digital transactions, the majority of Indonesians use digital
payments when shopping through Shopee, very few respondents use cash payments upon
product arrival (Cash On Delivery). This shows that the Indonesian people are very familiar
with digital payments, especially during the Covid-19 pandemic to minimize contact and
maintain distance. Although in general, the people in their current condition after 11 months
through the pandemic still make the main reason for online shopping to be chosen because
it provides more information about prices and product choices rather than concerns about
minimizing physical contact. Likewise for product delivery (packages), the majority of
respondents still prioritize good packaging compared to concerns about the sterility of the
packages sent.

The most popular product during the pandemic is still very mainstream, namely fashion.
There are no significant changes leading to health products or foodstuffs, in contrast to
previous research conducted at the time of the lockdown at the start of the pandemic in India,
where health and food products were targeted when shopping online, while fashion products
experienced a decline in preferences. This difference occurs due to the difference in time
when this study was conducted. The questionnaire responses were received in January after
the pandemic period in Indonesia had lasted for about 11 months, so that people began to
get used to the adaptation of new habits.
In an effort to improve its performance, Shopee provides services outside of buying and
selling to increase consumer engagement with the brand. This is shown by creating the
Shopee Live feature which indirectly provides an understanding of various products, as well
as the shopee games and shopee league features as a form of entertainment media that
consumers can use to optimize their time during their many activities at home or activities
during the adaptation period of new habits. Shopee's efforts are good enough, because some
respondents are familiar with these features.
CONCLUSIONS
Based on the research results, it can be concluded that the thinking patterns and preferences
of online shopping during the Covid-19 pandemic have increased compared to before the
pandemic. The Indonesian people feel more comfortable shopping online through Shopee
compared to coming directly to offline stores because of the availability of information about
prices and various products, the mindset related to the delivery of products expected during
the Covid-19 pandemic is good delivery, and some respondents expect delivery done by first
sterilization and a little contact. For product preferences during the Covid-19 pandemic, the
main products that are most in demand are still fashion products, although in other respects
the preference for health and food products was also chosen by some respondents.

From Shopee's marketing strategy through the Shopee live feature and entertainment media
such as Shopee Liga and Shopee Games, has been recognized by some consumers, but it is
still not optimal for increasing consumer loyalty considering that there are still many
consumers who have not tried this feature both to support their shopping needs as well as as
a the main entertainment media. Therefore, the results of this study are expected to be used
as input for management to optimize the use of features that are formed, so as to provide
added value for the company. but it is still not optimal to increase consumer loyalty
considering that there are still many consumers who have not tried this feature both to
support shopping needs as well as as the main entertainment media. Therefore, the results of
this study are expected to be used as input for management to optimize the use of features
199 | The International Journal of Business Review (The Jobs Review) Vol.4 | No.2 | 2021
 WAHYU FIRMANDANI1, ANISA FITRI SYA’BANIA2, FADLIL ABDANI3, ELTIN MADANI4/Analysis of
Indonesian Consumer Online Shopping BehaviorDuring the Covid-19 Pandemic: A Shopee Case Study

that are formed, so as to provide added value for the company. but it is still not optimal to
increase consumer loyalty considering that there are still many consumers who have not tried
this feature both to support shopping needs as well as as the main entertainment media.
Therefore, the results of this study are expected to be used as input for management to
optimize the use of features that are formed, so as to provide added value for the company.

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