Articles

Legal Protection for Both Parties in the Execution of E-Commerce Based Buying and Selling Agreements Grounded in Justice

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The internet media used for trading is known as electronic commerce (e-commerce), a business process that provides facilities between buyers and sellers or companies, consumers, and specific communities in electronic transactions related to goods, services, and information. In order for the parties involved in the transaction to feel more comfortable and secure, electronic transactions have been regulated in the ITE Law. The research method used in this study is normative or doctrinal. The nature of this legal research is prescriptive. The technique of collecting legal materials in this research is through document study or literature review. The results of the study indicate that the process of implementing buying and selling transactions through e-commerce is carried out in several stages, namely Offer, Acceptance, Payment, and Delivery. The buying and selling agreement through e-commerce is included in electronic contracts. Based on Article 1 number 17 of Law Number 11 of 2008 concerning Electronic Information and Transactions. Article 1320 of the Civil Code which is then reaffirmed in Article 47 paragraph (2) of Government Regulation Number 88 of 2012 concerning the Implementation of Electronic Systems and Transactions. Legal protection for Shopee consumers is based on the Consumer Protection Law Number 8 of 1999 and the Electronic Information and Transactions Law No. 11 of 2008 can be seen in regulations regarding consumer rights protection and compensation.

Analytical Hierarchy Process (AHP) Method for Marketing Agency Selection at PT Kirana Mitraabadi

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E-Commerce growth in Indonesia sets the stage for PT Kirana Mitraabadi, underlined by statistics indicating a substantial increase in e-commerce users. PT Kirana has identified the need to embrace and make a shift from a B2B-focused business model to the dynamic B2C market. The company aims to leverage this momentum, recognizing the potential to broaden its customer base and drive sales through the introduction of a new product line derived from its core offering of paraffin wax. However, the complexities of this shift reveal a major challenge in PT Kirana’s marketing division, which specializes only in B2B strategies. The key responsibility is developing B2C marketing strategies, required to be employed with a competent marketing agency. The assessment is conducted using 5 Whys technique and a fishbone diagram, examining the current factors and challenges that PT Kirana faces. Then, the process of choosing the agency involves a thorough decision making approach that takes into account both qualitative and quantitative factors. The Analytic Hierarchy Process (AHP) is the preferred method for assessing and choosing the best marketing agency to partner with. The findings of the AHP analysis offer actionable insights, facilitating a seamless transition for PT Kirana Mitraabadi’s as it ventures into the B2C market, supported by the strategic expertise of the chosen marketing agency. This will help the company to capitalize on the e-commerce market in Indonesia, expand its customer base and successfully introduce their new product line also increasing their sales through the B2C market strategies.

Warehouse Location Optimization with Clustering Analysis to Minimize Shipping Costs in Indonesia’s E-Commerce Case

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Due to the growth of the Internet economy, the popularity of online shopping has escalated in recent years. One of the largest e-commerce enterprises in Indonesia, PT. S, is the subject of the research in this article. Instead of typical e-commerce, where anybody may start a store, PT. S is concentrating on social commerce, which makes use of several resellers to offer hand-picked SME brand partners. PT. S must expand the market for inter-island or non-java-to-non-java transactions to fulfill its vision. However, PT. S will have logistical difficulty completing this job. The business used performance indicators to keep track of the logistics process’ vision and mission. Gross merchandise value, pickup time service level, and shipping time service level are a few of the performance indicators that pertain to logistics. The process of managing the supply chain will become more complex as a result of the opening of the new warehouse, and the business will need to maximize its use of various selling channels, logistical services, and supply chain management. With the aid of clustering analysis, which assesses demand similarity and proximity, the enterprise can locate a new warehouse. Durairaj and Kasinathan developed the framework template for this study in 2015. Based on the case study, literature review, and clustering method framework, the framework will be modified in several ways, particularly clustering analysis. The alteration concerns framework-integrated theories as an input and as a data source. According to the simulation’s findings, shipping costs per kilogram decreased by about 35% for five clusters. But if the corporation does not have a problem with the number of warehouses, according to the simulation’s findings, because the cost of transportation will go down as the number of clusters increases, the number of warehouses can be expanded to more than five.

E-Commerce Product Demand Modelling Using Machine Learning Algorithm Case Study of Rice Trading Products in PT XYZ

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E-commerce XYZ is an Indonesian commerce company that have 3 types of products in its B2C business line: trading, consignment, and marketplace. From January 2021 until October 2022, the company’s trading rice category product sales generated a negative profit. Even though for the last several years e-commerce has been focused on growth instead of profitability, the current economic environment is forcing e-commerce companies to focus on profitability as well. For trading products, maximum profit can be achieved in two ways: selling products with a very high margin but with less quantities or selling in large quantities but with a sub-optimal margin. Hence, the company needs to find a demand function model that can be used to generate maximum profit. To find the best model, the researcher first created a baseline model by using median for every product group which is already grouped based on their Unit of Measurement. Next, to find the best model, the researcher will create a demand function using 4 other models. It is found that Gradient Boosted is the best algorithm to model the demand function. Although this model successfully models a demand function for a product category in e-commerce, business context still needs to be added before this model can be implemented in real life as well as finding other features that might affect the demand function.

Determining Marketing Mix of CV Nutri Pro by Using Big Data Analytics

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Technological growth supports the acceleration of the health industry. Technology provides an opportunity for business actors to convey product advantages to be disseminated widely through digital media. Apart from providing benefits in the easy dissemination of information, digital media can be a sales media for the health industry. Based on data from Tokopedia (e-commerce with the most users in Indonesia), the biggest sales are dominated by health products. Large amounts of data (big data) available in e-commerce can be extracted using the Web Scraping method. Big data can be processed to gain certain insights in achieving competitive advantage. CV Nutri Pro as a medium-sized business has limited data which causes the marketing mix that has been prepared beforehand to be incomplete. This condition causes out of sync, where there are demands that cannot be fulfilled. Based on the opportunity to utilize big data, CV Nutri Pro can determine a comprehensive renewable marketing mix. Each aspect of the marketing mix (4Ps) will be processed using big data analytics. The methods used include Pivot Data, K-Means, and Multidimensional Scaling (MDS). This research provides new insights for the company to renew marketing mix.

Proposed Design of Performance Management Framework for 3PL (Third-Party Logistics) Aggregator

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This white paper proposes a performance management framework for third-party logistics aggregators (3PLs) that connect e-commerce companies and logistics providers. The logistics industry has grown rapidly in recent years, and with the emergence of aggregators, performance records must be updated. Using a case study of an Indonesian startup PT P, we create a framework using qualitative and quantitative interviews with the company’s C-levels. The framework is based on KPBMS, a simple and knowledge-based performance management system available in Indonesia. Traditional financial-based performance management systems have proven limited in their ability to adapt to modern organizational operating systems. A new-generation performance management system is based on the company’s strategy and values, is customer-centric, long-term, and emphasizes continuous improvement. The proposed framework includes strategic objectives, key performance indicators (KPIs), objectives, initiatives and reviews. KPIs are categorized into financial, customer, internal process, and learning and growth perspectives. Goal setting is based on broader goals, and initiatives are defined on the basis of rapid outcomes and long-term projects. The review process includes monthly, quarterly, and annual reviews focused on identifying areas for improvement. The proposed framework will help 3PL aggregators like PT P to set up a performance management system to monitor the performance of logistics providers and provide recommendations to e-commerce companies.

Proposed Marketing Strategy to Increase Purchase Intention on Tokopedia Package Subscription

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Tokopedia is offering merchants a new feature called packaged subscriptions. However, there is evidence of low sales for these paid features. This study creates a marketing proposition to solve this problem with low-purchase packages. The purpose of this study is to identify the top reasons for unwillingness to pay, identify the key factors that motivate sellers to purchase, and identify appropriate strategies to motivate sellers to pay for packaged subscriptions. This research utilizes Triangulation method consisting of internal, external and qualitative analysis to determine that the main drivers of sellers’ purchase intention were price and information quality factors. The study uses the company’s industry environment, competitors, company capabilities, and the user’s analysis to generate recommendations using the QSPM matrix. The most pertinent recommendation is to offer a free trial program and scheduled in-app notifications to boost the seller’s intent to purchase the subscription package.

E-Commerce and Environmental Uncertainty Adoption in Strengthening Financial Literature on the Performance of MSMEs in the Culinary Sector in Solo

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This study has purpose (1) to analyse the effect of financial literacy on the performance of MSMEs. (2) to analyse the effect of financial literacy on the performance of MSMEs moderated by e-commerce adoption. (3) to analyse the effect of financial literacy on the performance of MSMEs moderated by environmental uncertainty. The quantitative descriptive approach was used in this study, which included 175 SMEs in the culinary sector in Solo. Data sources were acquired from primary sources utilizing a closed questionnaire technique, and the measurement scale was a 5-point Likert scale. The Pearson Correlation and Cronbach Alpha tests are used to assess the data’s quality. The data analysis technique used regression analysis with the Absolute Difference test approach, after first performing the traditional assumption test. The results of the study show (1) Financial literacy has a significant effect on the performance of MSMEs in the culinary sector in Solo City. (2) E-commerce can moderate the influence of financial literacy on the performance of MSMEs in the culinary sector in Solo City. (3) Environmental uncertainty cannot moderate the influence of financial literacy on the performance of MSMEs in the culinary sector in Solo City.

Proposed Service and Marketing Communication Initiatives to Strengthen Blibli Positioning in E-Commerce Industry

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Since the beginning of the pandemic, the trend of online shopping in Indonesia has been increasing as people are reluctant to shop outside their homes. This triggered the growth of the e-commerce industry, which then resulted in high competition in the industry. Each company provides a wide selection of products and competitive prices to increase sales. Blibli, as one of the leading e-commerce companies in Indonesia under Djarum Group, believes that there needs to be other initiatives beyond price and product variety to strengthen the company’s position. Blibli is committed to providing convenience and security in shopping by providing maximum service. By using primary and secondary data, the author analyses conditions of competitors, customer segmentation that prioritizes services, and how to effectively communicate the services that Blibli has. Primary data is obtained through questionnaires distributed to active users of e-commerce. Through the research conducted, it can be concluded that Blibli’s main competitors (Tokopedia and Shopee) currently do not use services as a differentiator. The author also proposes customer segmentation, namely the millennial generation, who are aware of the importance of service in online shopping. Blibli’s “positioning” proposed in this research is basically in accordance with Blibli’s current “positioning,” but Blibli needs to update its marketing communication strategy so that customers understand Blibli’s advantages. The proposal submitted by the author is expected to help Blibli strengthen its position in the industry as a company that always prioritizes customer satisfaction through excellent services.

Proposing a Research Model on Factors Affecting Customers’ Trust in E-Commerce Transactions in Binh Dinh

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Although online shopping is convenient, has many advantages, and is the trend of the times, consumers still have not put their whole trust in these goods and service providers. It is essential to study the factors affecting customer trust in e-commerce transactions. To have the basis to carry out this study, the authors have analyzed relevant research at home and abroad. On that basis, propose a model to study the factors affecting the trust of customers in e-commerce transactions in Binh Dinh province, which are: website reputation, website design, information quality, transaction safety, and social impact.