Online Seller Archetypes I — The Hidden Entrepreneurs

Online retailers have quickly become a cornerstone of modern commerce. Our lives have become increasingly digital, a trend that has only accelerated during the pandemic. Given social distancing measures, we now rely on online technology more than ever to work, communicate and consume.

As restrictions to mobility continue, offline retailers are seeing a greater push to go online both out of necessity and from the newfound demand of online purchasing. Many governments are looking for ways to support these MSMEs and help them maximise their gains from digitalisation. However, while it’s tempting to treat these sellers as a homogenous group and prescribe a one-size-fits-all policy measure, our research suggests otherwise.

We find that there is significant diversity in these online retailers, their backgrounds, their motivations and the role of e-commerce in their lives. These differences reflect the need for more targetted policies to help support these sellers who have become pivotal during life in the new normal.

In 2019 we surveyed a total of 42,000 sellers on Shopee, our pan-regional e-commerce platform, to get an in-depth look at how e-commerce has impacted the entrepreneurs of the region. We asked online sellers from Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam, across all levels of maturity and digitalisation about how e-commerce has impacted them. We also asked them general questions on their demographics and qualitative questions on the motivations and reason for selling online. Through the survey, while not completely exhaustive, we identified 5 unique “seller archetypes” which reflect the true heterogeneity of online sellers in the region.

In this article, the first of two, we look at a unique group of entrepreneurs we’ve dubbed as “hidden entrepreneurs”. Hidden entrepreneurs don’t resemble the conventional stereotype of an entrepreneur. They are those that might have otherwise never ventured into entrepreneurship, if not for the significantly lowered barriers to entry afforded by e-commerce. They include homemakers and students, whereby their online shops may not be their primary priority, but nonetheless provides valuable alternative incomes to support their livelihoods.

The Homemaker

Online sellers who are homemakers make up a significant share of our seller, with Indonesia having the highest share. They are typically in their early 30s, are almost entirely female and on average take care of households with 4 people. As custodians of the household, the main priority of homemakers is naturally their homes. In fact, the majority of homemakers report primarily using the earnings from their online businesses to support their families.

They also often have to balance household responsibilities and caring for their children with their entrepreneurial ambitions. as such, time management is crucial for the homemaker and is their number one motivation for adopting e-commerce. The flexibility of working hours that e-commerce affords allow homemakers to pursue both without sacrificing either. This is especially pertinent given how social distancing are forcing parents and children to work and study from home. Many parents, particularly mothers, are often forced to manage their jobs, household and child’s learning simultaneously. E-commerce may be one avenue to help relieve these time pressures.

The Student

Student entrepreneurs have the daunting task of managing an online operation while also pursuing full-time studies. E-commerce has the potential to deliver meaningful social impact to these young, typically female, entrepreneurs who tend to rely on online selling as their primary source of income, and are the most likely among all the archetypes to use their earnings to pay for their education.

Compared to their older counterparts, students tend to have less personal savings. Coupled with the demands of full-time studying they exhibit greater sensitivity to costs of both time and money. Therefore, these entrepreneurs benefit especially from the convenience of e-commerce to test out their ideas in a low-cost and low-risk environment, which lowers their barriers to entry.

A New Generation of Entrepreneurs

E-commerce helps to uncover and empower these hidden entrepreneurs, who now depend on it as a valuable source of alternative income to support themselves and their families. This diversification of income streams is even more critical during the pandemic, where social distancing measure has severely effected the jobs and livelihoods of millions in the region. E-commerce has helped these sellers take the first step on their entrepreneurial journey and even has the potential to see them grow to become fully realised digital entrepreneurs.