SALES CONVERSION RATE IN E-COMMERCE SHOPEE: CASE FROM BDG PROJECT STORE
5. DISCUSSION
5.1 BUSINESS SOLUTION ALTERNATIVE RESUME
The following is a summary of business solutions that can be used as an option for FBP to use in resolving its business issues.
5.1.1 IMPROVED SHOPEE PRODUCT PAGE VIEWS
Based on the analysis of the respondent’s answers, the following Table 1 is a business solution that can be applied by FBP by improving the information seen by Shopee user-product visitors on the product page.
Table 1 Improved Shopee Product Page Views Info in Product
Page Current Condition New Solution
Product Photo
Photo professional from supplier with white background
Use real picture that show product clearly with natural background as main photo product
Another photos product
only use real picture Another photos product use professional photo and real picture from customer review
Product Title Full length title 100
character Short, simple, and to the point title with SEO Shopee
Product Price
Product pricing:
competitive price with added value but not the cheapest
Cheapest product price
Not the cheapest, but still affordable and around average market price
Price range: IDR 2,500 – 24,900
Selling new products with a price range of IDR 50,000 - 250,000 according to the data on the average price of one product purchased online at Shopee so that the shipping cost is not higher than the price of the item
Selling new products with prices above IDR 22,000 to exceed the national average shipping cost because many consumers do not want to buy products that are cheaper than the shipping cost
Selling new products at a price above the minimum shopping requirements for free shipping because many consumers don’t want to buy a product if they can’t use a free shipping cost voucher
Product Rating Different depending on the product, range rating 4.7 - 5.0
Maintain a minimum rating of 4.5 and increased the product ratings from 4.7-4.8 become 5.0 by improving service and ensuring good product quality
Product Sold Different depending on the product, range 71pcs – 14,300pcs sold
Increased the number of product sold that below 999pcs become more than 1,000pcs sold
Shipping Cost Join Gratis Ongkir XTRA
program Continue to join XTRA Free Shipping program to meet consumer desires
E x p e d i t i o n
Option Only J&T Express expeditions available
Open Gojek & Grab instant courier options so that delivery will arrive on the same day
Opening a cargo type expedition such as JNE Trucking (JTR) so that the shipping costs for wholesale purchases are cheap Opened expeditions at low prices and participated in free shipping cost programs, namely SiCepat Halu and Ninja Express
Open all expedition options so that consumers can choose an expedition that is trusted and available in their city COD Payment
Method COD payment method
options are available Continue the availability of the COD payment method to meet consumer desires
Store Rating 4.84 / 5.00 Maintain a minimum rating of 4.5 and Increased the store ratings from 4.84 become 5.0 by evaluating the rating of each product
Percentage of
chats replied 97% Keeping the percentage of chats replied at least 95% and increased become 100% with shifting admin 24 hours
Seller Location Only in one city, Bandung
Adding warehouse branches to Jakarta to expand the market to the JABODETABEK area
Added a warehouse branch to Surabaya to be closer to buyers in Eastern Indonesia
Adding warehouse branches on every island so that the shipping costs are cheap and get to consumers quickly Adding warehouse branches in every major city in Indonesia so that the shipping costs are cheap and reach consumers quickly
P r o d u c t
Description There are still limited results from other sellers
Ensure that there are at least three pieces of information, namely product specifications, explanation of product specifications and information about the availability of product stock
Written Review Not asking consumers to review
Provide discount vouchers to consumers who provide positive reviews
Give a giveaway in the form of a raffle prize to buyers who provide positive reviews
Photo Product Review
Not reply to all negative reviews
Reply to negative reviews with a confirmation statement and contact the buyer to resolve the problem and ask for a change to a positive review
Not asking consumers to upload product photos in reviews
Ask consumers to provide reviews using product photos from consumers
Send real pictures of products that will be sent to consumers so that the photos can be used by consumers to write reviews
Star Seller Badge Have a Star Seller badge Maintain the Star Seller title Cashback XTRA
Badge
There is no Cashback XTRA badge because not joining the program
Join the Cashback XTRA program by paying an additional 2%
admin fee
Do not join the Cashback XTRA program and do not need to pay admin fees
5.1.2 FOLLOW UP POTENTIAL BUYER
Based on the respondent answer about reasons for not making a purchase, FBP can follow up potential buyers to purchase by understanding the type of potential buyer and how to treat them. The following Table 2 is a strategy that can be applied by FBP to increase the sales conversion rate by maximizing potential buyers.
Table 2 Follow Up Potential Buyer
Type Potential Buyer Data Findings Business Solution Added product to cart, but
have’nt checkout
Customer list in broadcast chat payment reminder at Shopee sell- er center sub-buyer management
Broadcast chat special free shipping cost or discount voucher
Checked out product but
have’nt made a payment Shopee seller center in the order section -> my order -> unpaid
Personal chat to reminders payment.
First chat at first hour order created to confirm order receipt and second chat at last 3 hours payment to offering special additional gift.
Checked out product but did’nt make payment until deadline
Shopee seller center in the order section -> my order -> cancellation (canceled automatically by the system)
Personal chat to ask about reason can- celed order and offering special addition- al gift to create new order
For visitors who have added FBP products to their cart and have not checked out, FBP can use the buyer management feature in the seller centre to broadcast chat to consumers who have FBP products in their basket.
FBP can provide exclusive vouchers in the form of a discount or free shipping in its broadcast chat to increase checkout desires. For potential buyers in the way of visitors who have checked out the product and have not made a payment or have not made a payment until the 1x24 hour deadline, FBP can remind the payment via chat to the user. How to see a list of users can open a seller centre in the order section -> my order -> unpaid and cancellation (cancelled automatically by the system). Chat reminders can add additional gift offers if you make a payment on the same day or confirm that the goods will be shipped immediately if you make a payment before cut off packing.
5.2 CONCLUSSION
After distributing questionnaires and analyzing answers from the respondent, the low of FBP sales conversion rate is concluded from two leading causes, first is the habit of Shopee users who open products without buying intent or delaying the purchase and second is information on FBP product pages that is not convincing so that visitors do not buy products at FBP.
FBP Visitor who did not want to buy the product, its potential could not be maximized so that the sales conversion rate would not be able to reach 100%. The habit of Indonesian consumers who often walk to the mall without shopping turns out to be in online media, which is only looking at products at Shopee for fun. For FBP visitors who postpone product purchases and have put the product in the shopping basket, this can be maximized through consumer follow-up, which is included in potential buyer data.
To maximize FBP visitors who intend to buy a product, but do not shop because the information on the FBP product page is inconclusive, new strategies will be implemented to improve it. As a solution to increasing the sales conversion rate, two business solutions will be carried out, improving the appearance of the FBP product page on Shopee and following up potential buyers through the features available on Shopee.
5.3 LIMITATION
Based on the explanation above, this research focuses on strategies to solve FBP problems about the low of sales conversion rate. On the other hand, human resources, finance, operations aspects are not included in aspects that will be focused more deeply. This research will be for July 2020 based on data from January 2019 to June 2020.
REFERENCES
Arikunto, S. (2002). Metodologi Penelitian Suatu Pendekatan Proposal. Jakarta: PT. Rineka Cipta.
Baum, David. (1999). Business Links. Oracle Magazine Vol. XIII.
Dixon, J., Gulliver, A., Gibbon, D., & Hall, M. (2001). Farming Systems and Poverty: Improving Farmers’
Livelihoods in a Changing World. Washington DC: World Bank.
Engel, F. James, Blackwell D. Roger, dan Miniard W. Paul. (2010). Perilaku Konsumen. Jakarta: Binarupa Aksara.
Hasan, M. Iqbal. (2002). Pokok-pokok Materi Meto dologi Penelitian dan Aplikasinya, Bogor: Ghalia Indonesia.
Katadata.co.id (2019, October 3). Indonesia Kontributor Terbesar Ekonomi Digital di Asia Tenggara. Retrieved from https://databoks.katadata.co.id/datapublish/2019/10/03/ indonesia-kontributor-terbesar-ekonomi- digital-di-asean#
Katadata.co.id (2019, October 3). Riset Google: Nilai Ekonomi Digital Indonesia Saat Ini Rp 568 Triliun. Retrieved from https://katadata.co.id/desysetyowati/digital/5e9a4e616 f15b/riset-google-nilai-ekonomi-digital- indonesia-saat-ini-rp-568-triliun.
Katadata.co.id (2018, September 18). Ekonomi Digital Diprediksi Sumbang 9,5% PDB pada 2025. Retrieved from https://katadata.co.id/pingitaria/digital/5e9a55d4b8514/ ekonomi-digital-diprediksi-sumbang-95-pdb- pada-2025.
Katadata.co.id (2018, February 20). Berapa Jumlah Pengguna Internet di Indonesia?. Retrieved from https://
databoks.katadata.co.id/datapublish/2018/02/20/berapa-jumlahpengguna internet-di-indonesia Laudon, Kenneth C. & Laudon, Jane P. (1998). Management Information Systems - New Approaches to
Organization & Technology. New Jersey: Prentice Hall.
Liehr, P., & Smith, M. (1999). Middle Range Theory: Spinning Research a nd Practice to Create Knowledge for the New Millennium. Advances in Nursing Science.
Mangkunegara, Prabu Anwar. (2002). Perilaku Konsumen. Bandung: PT. Refika Aditama.
MBA Skool. (2011). Consumer Analysis. Retrieved from https://www.mbaskool.com/ business-concepts/
marketing-and-strategy-terms/11977-consumer-analysis.html
Subagyo, P. (2006). Metode Penelitian Dalam Teori dan Praktek. Jakarta: PT. Rineka Cipta.