Online Marketplace for Indonesian Micro Small and Medium Enterprises based on Social Media

Abstract Indonesian Micro Small and Medium Enterprises (MSMEs) have particular characteristics that distinguish them from general business and thus require treatments that are different from those aimed for general businesses. In general, Indonesian MSMEs consist of various categories: micro enterprise, small enterprise, and medium enterprise. Each has different characteristics. The category that has the highest number of participant is micro enterprise. However, micro enterprises still experience problem in marketing realm. Marketing itself may be supported with the E-Commerce. But most MSMEs have not been able to fully adopt the E-Commerce due to lack of technological preparedness. Technological adjustments in the E-Commerce need to be made. In addition, the development of social media in Indonesia cannot be dismissed. This paper describes the problems encountered in the adoption of E-Commerce in Indonesia, and presents the analysis of Indonesian MSMEs condition and needs for the development of Online Marketplace for MSMEs. This analysis suggest the system design that resolves the issues in technological preparedness and technological adoption of Indonesian MSMEs marketplace or MSMEs in developing countries. The use of social media in the form of Facebook Commerce is provided as the basis of interaction on the Marketplace. This is done in order to improve trust in the interaction and accelerate word of mouth marketing via the internet and social networks.