Virtual Product Marketplace Itemku Reveals Business Growth During Pandemic

In addition to the e-commerce services that experienced business growth during the Covid-19 pandemic, the gaming industry also experienced a significant increase. In mid-March 2020 the largest digital game market platform in the world, Steam, reported the largest user growth increase in history. They claim to raise more than 20 million active users on Steam within 24 hours, both for playing games or practically online.

As a marketplace platform that serves digital product sales, especially game demand such as goods, accounts and vouchers; The company claims to have experienced rapid growth. Recorded since March 2020, their monthly active users increased by 78%, with the number of new registrations experiencing a sharp increase of up to 97%. In addition, the ratio of users who visit Itemku for the first time has also increased, from 70% to 76%.

Founded in 2015, Itemku run by Five Jack has helped gamers sell and buy virtual products in their favorite games.

Itemku's Chief Product Officer, Virdienash Haqmal told DailySocial, during 2020, the company's GMV per month has increased to 15-20%, as well as revenue. Customer growth also increased by 60% from January to June 2020. While for marketing activities, the company reduced its budget by 80%.

"The company currently focuses on affiliate marketing (Itemku Creators Guild) which has a low cost-high impact and has a snowball effect on the number of registrants and new buyers."

Similar products can also be purchased at several other popular marketplaces. For example through Tokopedia, the platform allows players to buy virtual assets using credit. Another convenience is also presented by the GoPay platform, which has been connected with payment services on Google Play.

Fundraising plan

Previously, the company has launched an application available on the Play Store. The use of applications has also increased during the pandemic. The company noted the number of downloads increased from an average of 2800 to 5100 per week or about 77%.

In terms of users, both buyers and sellers are mostly fond of the simple features fast delivery process. In Itemku, there is an "Instant Delivery" feature that allows the system to send the seller's product automatically after it is paid for. This feature is only available for voucher products. For top-up products and other virtual items, a 10 Minute Delivery Guarantee is available which is only available for sellers with good sales records.

"In terms of business, the company is conducting research to reach the physical product market in order to become a hobby marketplace. As for the target that is still to be achieved this year, Itemku wants to improve services for sellers and become a marketplace for hobbies. Currently, the company is in the process of fundraising," Virdienash said.

In 2017, Itemku has secured fresh funding worth of $1.2 million (around 16 billion Rupiah) from 500 Startups and several unnamed South Korean venture capitals. Funding is channeled to dominate the Indonesian virtual item market while expanding into the Southeast Asian market.

– Original article is in Indonesian, translated by Kristin Siagian