Tokopedia PRD Case Study

Problem Statement

The Intracity orders in Surabaya remain low, as only 20% orders in Surabaya are fulfilled locally. For some products like “Susu Segar”, 7 out of the first 12 products shown in the search results are from Surabaya, showing the availability of local product, but yet does not translate to higher intracity order.
The top selling categories from 2022 is Rumah Tangga, Makanan & Minuman, and Kesehatan. Often users want these products to be delivered quickly, and on the same day, so it make sense that these orders come within the city (Intracity).
But the same concept doesn’t hold for another top selling category: Elektronik. These products are not as time-sensitive as other categories but carry a significant cost, which seemingly influence buyer’s decision.
For instance, consider the iPhone 14 Pro Max 256GB Deep Purple (iBox Edition) as an example. Buying it locally in Surabaya would cost around Rp. 23,419,000, with free delivery. But buying from Jabodetabek only costs Rp. 22,650,000 plus Rp. 13,600 for delivery which is still far less expensive. (Prices that are presented is calculated by mean calculation from the first 10 products shown, furthermore on the appendix)
So despite the benefits of faster delivery and supporting such local businesses, buyers in Surabaya are leaning towards a lower price point, even if that means ordering from other city (intercity). Therefore this is one of the key factor to why intracity orders in Surabaya remains low.

To summarize the problem statement:

Who, What, Why, How	Brief description	Description
I am	Surabaya buyer, Loves buying electronic devices	A buyer in Surabaya interested in buying electronic devices.
I am trying to	Support local businesses, Faster delivery	Purchase these devices locally to enjoy the benefits of faster and cheaper delivery than buying from sellers in other cities (intercity).
But	High local prices	I find that buying electronic devices locally in Surabaya is often more expensive than buying from sellers in other cities (intercity).
Because	Uncompetitive pricing	Local sellers in Surabaya are unable to offer competitive pricing to sellers from other cities. The price difference, even after including delivery, and insurance cost, makes purchasing from other cities more effective.
Which makes me feel	Disappointed, Frustrated	Disappointed and frustrated, I want to support local businesses and take the advantage of cheaper & quicker delivery times, but the higher costs of the product makes me choose buying from sellers from other cities to save money.

Objective

To increase chance for sellers to join Power Merchant or Official Store
To increase intracity order

User Persona

Name: Reid Hoffman | Age: 30 | Based in: Surabaya | Job: Product Designer

Behavior: Occasionally buys electronic devices online, prefers buying online due variety of options, and cheaper prices.

Challenge: Struggling to find a balance between cost, convenience, and supporting local businesses

Goal: Make more local purchases without feeling like he’s paying more for the same product.

Proposed Solution

To address the issue of the price gap, our strategy is to encourage Surabaya sellers that have joined Power Merchant / Official Store to provide discounts to their products. In exchange we will provide them with increased product visibility.