Every day, millions of transactions happen on Tokopedia, Shopee, Lazada, and other marketplaces in Indonesia. These are powerful, easy-to-use platforms. But more and more business owners are starting to ask: is this the best long-term choice?
This article isn't about telling you to stop selling on marketplaces. Both have a role to play in a healthy e-commerce strategy. But you need to clearly understand the trade-offs before deciding where to allocate your resources.
The Marketplace Cost Reality Most Sellers Don't Realize
Many marketplace sellers feel their costs are low — "opening a store is free, after all." But let's do the math more carefully:
Direct Commission Costs
Every platform takes a percentage of each transaction:
- Tokopedia: 1-5% depending on category and tier
- Shopee: 1-4% plus administrative fees
- Lazada: 2-8% depending on category
- TikTok Shop: 1-5%
On Rp 100M in monthly revenue, platform commissions alone can reach Rp 2-5M per month — or Rp 24-60M per year.
In-Platform Advertising Costs
Organic reach on marketplaces keeps declining. To appear in front of buyers, you need to advertise:
- Sponsored/paid products: Cost per click can be quite significant for competitive categories
- Flash sales and platform promos: You're asked to participate with additional discounts
- Loyalty programs: Contributions to the platform's cashback program
Many serious marketplace sellers allocate 10-20% of their revenue to in-platform advertising.
Other Hidden Costs
- Premium packaging: Intense competition forces investment in better packaging
- Return costs: Buyer-friendly return policies often work against the seller
- Operational time: Live streaming, flash sales, product updates — all require extra time
What You Hand Over to the Marketplace
Beyond just money, selling on a marketplace means giving up several important things:
Customer Data
On a marketplace, customer data belongs to the platform. You know someone bought your product, but you don't know who they are, their email, their purchase history, or their preferences.
Without customer data, you can't:
- Send marketing emails or promo notifications
- Retarget past buyers with new products
- Build an effective loyalty program
- Understand your customers' lifetime value
An Ever-Changing Algorithm
Your product's visibility is determined by the marketplace's algorithm, which can change at any time. Many sellers have experienced sudden, drastic sales drops due to unannounced algorithm changes.
Brand Identity
On a marketplace, every store looks the same. The shopping experience is the Tokopedia or Shopee experience — not your brand's experience. It's hard to build a strong brand identity when the customer experience is controlled by another platform.
Pricing Position
Marketplaces drive price competition. Buyers can instantly compare your price with competitors on the same page. Great for buyers, but it creates a race to the bottom for sellers.
The Advantages of Your Own Online Store Website
Full Control Over Customer Data
With your own website, every customer who signs up or makes a purchase gives their data to you, not to another platform. You can:
- Email marketing: Promote new products, flash sales, educational content — straight to the inbox of customers who've already bought from you
- Remarketing: Ads targeted at website visitors who haven't purchased yet (retargeting)
- Loyalty program: Points, membership tiers, and rewards that bring customers back
- Personalization: Product recommendations based on purchase history
A returning customer costs, on average, 5-7x less than acquiring a new one. Customer data is a long-term asset that keeps growing in value.
A Branded Customer Experience
On your own website, every touchpoint represents your brand:
- Design consistent with your visual identity
- How you welcome new visitors
- A smooth checkout process
- Packaging and unboxing experience you fully control
- Personal after-sale communication
A consistent brand experience builds trust and loyalty that a marketplace simply can't deliver.
Healthier Margins
Without platform commissions (1-8%) and without pressure to advertise within the platform, per-transaction margins on your own website can be higher — even after factoring in website operational costs.
Independence from the Algorithm
Visibility on your own website doesn't depend on a platform algorithm that can change at any time. Investing in SEO delivers free, sustainable organic traffic in the long run.
Challenges of Your Own Website You Need to Prepare For
Building Traffic from Scratch
On a marketplace, there's built-in traffic from millions of existing buyers. On your own website, you have to build traffic yourself through:
- SEO: Optimizing for Google — takes 3-6 months to start paying off
- Social media: Content that drives traffic to your website
- Paid ads (Google Ads, Meta Ads): Instant traffic, but at a cost
- Email marketing: If you already have a customer database
Higher Upfront Costs
Building a good online store website requires upfront investment:
- Website development: Rp 3-15M depending on complexity
- Hosting and domain: Rp 500K - 2M per year
- Payment gateway: Per-transaction or setup fees
But this is an investment with long-term ROI — unlike marketplace commissions that recur with every single transaction.
Technical Management
A website requires maintenance — security updates, backups, monitoring. This can be handled with a maintenance service or by choosing a platform that manages it automatically.
Hybrid Strategy: Marketplace + Your Own Website
For most businesses in Indonesia, the best strategy is a combination of both:
Phase 1 (0-1 year): Focus on the marketplace to validate the product and build initial revenue. Use this revenue to invest in a website.
Phase 2 (1-2 years): Launch your own website. Use the marketplace for new customer acquisition, and the website for retention. Direct repeat buyers to the website with an exclusive loyalty program.
Phase 3 (2+ years): The website becomes your primary channel. The marketplace remains for acquisition, but profitability comes from the website and loyal customers.
How to Migrate Customers from Marketplace to Website
You can't contact marketplace customers directly — but there are indirect ways:
- Include a card in your packaging with an exclusive website offer (voucher, free shipping)
- Create an exclusive loyalty program on your website that doesn't exist on the marketplace
- Consistent social media content that directs people to your website
When Does Focusing on Your Own Website Make Sense?
Several indicators that it's time to seriously invest in a website:
- Your marketplace revenue is consistently above Rp 10-20M per month
- You already have a product with proven demand
- Marketplace advertising costs keep rising
- You want to build a stronger brand that doesn't depend on a single platform
- You want customer data for more effective marketing
Conclusion: Own Your Own House
Selling on a marketplace is like selling in someone else's shopping mall. Busy, easy — but you have no control over the rules, can't introduce yourself to buyers, and have to pay rent that keeps rising.
Your own website is your business's digital home — a place where you have full control, can build relationships with customers, and every investment builds an asset that you own.
AFSS helps Indonesian businesses build online stores that aren't just beautiful, but also perform — with the right SEO, user experience, and system integration. Get a free consultation about your online store.
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