Peer Review : THE PRODUCTIVITY OF INDONESIAN E-COMMERCE: EVIDENCE FROM A DIGITAL MERCHANT SURVEY

The Indonesian government is aware of the enormous potential of e-commerce and
provides various measures to support local products. However, many imported products
are still present in Indonesian e-commerce. Through this study, we want to provide an
analysis of the productivity of domestic products compared to imported products in
shopee.com. Besides, this study also seeks to identify factors that affect sales. We find that
the productivity of imported products is higher than domestic products. In order to increase
the productivity of domestic products, the Government of Indonesia should continue to
improve the logistics sector in order to lower transaction costs for domestic products and
also provide support for small- and medium-sized enterprises (SMEs). We also
found factors that affect average sales per month are price, seller's type and the length of
time the seller joins shopee.com. Therefore, sellers in shopee.com should consider those
factors to increase their sales.