By SACHIN V. GOPALAN

There is a number that quietly shapes the reality of millions of businesses in the digital economy.

Most consumers never see it. Most headlines rarely mention it. Yet for countless small businesses,
it can determine whether growth remains possible or whether survival becomes the primary
objective.

That number is 30 percent.

Across many digital marketplaces, sellers often surrender a significant share of every transaction
through commissions, promotional spending, advertising fees, payment processing charges, and
other platform-related costs. Individually, these expenses may appear manageable. Collectively,
however, they can substantially reduce the value that businesses retain from the products and
services they create.

The issue is not that platforms charge fees. Digital marketplaces provide tremendous value. They
connect buyers and sellers, simplify payments, facilitate logistics, and help businesses reach
customers at a scale that was previously unimaginable. Their success reflects years of investment,
innovation, and infrastructure development.

The problem emerges when participation in the digital economy becomes increasingly dependent
on a limited number of gateways. When access to customers is concentrated within a handful of
ecosystems, sellers often find themselves with fewer choices, less bargaining power, and rising
costs that are difficult to avoid.

For many MSMEs, this creates a cycle that can be difficult to escape. To remain visible, they spend
more on promotions. To stay competitive, they offer deeper discounts. To maintain sales volumes,
they invest more heavily in advertising and platform services. Revenue may increase, but
profitability often struggles to keep pace.

This is the commission trap.

Why Seller Margins Matter More Than We Realize

At first glance, discussions about commissions and transaction fees may appear to be business
concerns affecting only sellers. In reality, they have far wider implications.

Healthy businesses are built on healthy margins. When entrepreneurs retain a reasonable share
of the value they create, they gain the ability to reinvest in their operations. They can improve
product quality, hire additional employees, invest in innovation, strengthen customer service, and
expand into new markets.

When margins shrink, the opposite tends to happen.

Investment decisions are postponed. Business expansion slows. Product development becomes
more difficult. Entrepreneurs spend more time managing costs than pursuing growth
opportunities. In highly competitive sectors, some businesses may even be forced to sacrifice
quality simply to remain viable.

The consequences eventually reach consumers as well. Higher operating costs often translate into
higher prices, fewer choices, or reduced service quality. What begins as a challenge for sellers
gradually affects the broader ecosystem.

This is particularly important in countries like Indonesia, where MSMEs represent the backbone
of economic activity. Millions of small businesses are not merely participants in the economy; they
are among its primary drivers. Their ability to grow influences employment, household incomes,
local investment, and long-term economic resilience.

When MSMEs thrive, the benefits extend far beyond the businesses themselves.

The Challenge of Digital Dependence

One of the greatest achievements of the digital economy has been its ability to lower barriers to
entry. A small business can now reach customers nationwide without opening physical stores
across multiple cities. Entrepreneurs can access tools and services that were once available only
to large corporations.

Yet the same systems that enable access can also create dependence.

As digital marketplaces become larger and more influential, sellers often become increasingly
reliant on specific platforms to reach customers. Over time, this dependence can limit flexibility.
Businesses may find it difficult to move between ecosystems, negotiate costs, or explore
alternative channels without risking visibility and sales.

This dynamic is not unique to any single country or company. It is a structural characteristic that
often emerges in digital markets driven by network effects. The more users a platform attracts,
the more valuable it becomes. The more valuable it becomes, the harder it is for participants to
operate outside it.

While this can create efficiency, it can also reduce competition in important parts of the
ecosystem.

The question, therefore, is not whether digital platforms should exist. They clearly create
enormous value. The more important question is how markets can remain competitive while
preserving the benefits that platforms provide.

Open Networks Change the Equation

This is where open networks offer a compelling alternative.

Unlike closed ecosystems, open networks are built around interoperability. They allow different
participants to connect through shared standards rather than through exclusive relationships.
Sellers, buyers, logistics providers, payment companies, and technology firms can interact within
the same ecosystem while maintaining the freedom to choose the services that best meet their
needs.

The significance of this approach extends beyond technology.

Open networks fundamentally change how competition works.

Instead of competing for exclusive control over users, service providers compete on the quality of
their offerings. Logistics companies compete on speed and reliability. Payment providers compete
on convenience and efficiency. Discovery services compete on relevance and user experience.

Most importantly, sellers gain greater control over how they participate in the digital economy.
They are no longer confined to a single pathway for reaching customers. They can choose the
partners, services, and solutions that align with their business objectives. This increased flexibility
encourages innovation and creates stronger incentives for all participants to improve their
offerings.

In essence, open networks shift power from gatekeeping to value creation.

Competition Benefits Everyone

One of the most powerful economic principles is also one of the simplest: competition drives
efficiency.

When businesses compete fairly, consumers benefit from better services and lower costs.
Innovation accelerates because companies must continuously improve their offerings to remain
relevant. Markets become more dynamic, responsive, and inclusive.

The same principle applies to digital commerce.

When logistics providers, payment processors, technology firms, and discovery services compete
within an open ecosystem, sellers gain access to more options and better pricing. Reduced
dependency on any single intermediary can lower operating costs and create a healthier
distribution of value across the ecosystem.

Importantly, this does not mean platforms lose relevance.

Strong platforms will continue to succeed because they offer valuable services. The difference is
that success will increasingly depend on delivering superior value rather than relying on structural
advantages created by exclusivity.

That distinction matters because it encourages continuous innovation while preserving healthy
competition.

A More Balanced Digital Future

The future of digital commerce should not be framed as a choice between platforms and open
networks.

The most successful digital economies will likely be those that combine both. They will continue
to benefit from innovative platforms while also creating environments that promote
interoperability, competition, and choice.

Open networks do not eliminate costs, nor should they. Every participant in the ecosystem creates
value and deserves to be compensated for it. The goal is not to remove intermediaries but to
ensure that markets remain sufficiently open and competitive so that value is distributed more
fairly.

Ultimately, the commission trap is not simply about percentages or fees. It is about economic
agency.

It is about ensuring that the businesses creating products, generating employment, and driving
innovation retain enough value to invest in their own growth. It is about creating a digital
economy where participation does not require dependence, and where success is determined by
the quality of what a business offers rather than by the cost of accessing customers.

As the digital economy continues to evolve, open networks offer an opportunity to move closer to
that vision. Not by dismantling what already exists, but by creating a more balanced ecosystem
where sellers have greater choice, greater flexibility, and a greater share in the value they help
create.

Sachin V Gopalan is the CEO of Indonesia Economic Forum which is the Incubating Agency of
Indonesia Open Network (ION) being launched in July 2026. He is also Head of Steering
Committee of ION, which is as a model for open, interoperable digital commerce infrastructure
in Indonesia and Southeast Asia.