Live Shopping & Affiliate Link: Blurring The Line Between E-Commerce and Entertainment

Indonesian consumers are drawn to the effortless purchasing experience provided by e-commerce platforms as the digital landscape develops. The convenience of browsing through an extensive range of goods and making purchases from the comfort of their homes has completely changed the way people buy.  Remarkable speed of which purchases are processed and delivered, oftenly exceeds traditional retail timelines, resonates deeply with the fast-paced way modern- Indonesians’ life.

Jakpat conducts surveys annually to understand this trend. In the first semester of 2023, Jakpat surveyed 1,485 people on the trends in using e-commerce as a shopping medium. The study was carried out between February and May 2023 to understand people’s behavior when purchasing online, how they use e-commerce, and what marketing tactics work best, used by vendors on the platform as well as e-commerce sites.

Jakpat report shows, 88% of online shoppers made purchases during the first semester of 2023. E-wallets or digital wallets are the preferred method of payment when conducting e-commerce transactions, chosen by 72% of respondents who had already made a purchase.

Yet it’s not only about convenience and service speed, but also guarantee of sellers’ credibility in maintaining product’s quality, security, and dependable customer service, have built a sense of trust in Indonesian consumers. This is in line with what was conveyed by Aska Primardi, Head of Research of Jakpat, “The convenience, speed, and credibility of sellers makes online shopping activities still attractive to the people of Indonesia. These values ​​seem to be able to replace the discount value, which has apparently started to decline during the past year. This value is currently seen as the majority of e-commerce’s bare minimum service standard.”

The Phenomena Called Live Shopping & Affiliate Link

Live shopping has emerged as an engaging evolution of the online shopping experience, seamlessly combining the participatory element of social media platforms with the appeal of retail therapy. Jakpat reports, 9 out of 10 online shoppers have visited a live shopping broadcast.

Live shopping broadcasts are hosted by brands or influencers that showcase items and interact directly with viewers despite their location. This personal interaction gives customers a direct line of communication to ask questions, get answers, and learn more about products. Passive scrolling seems to have transformed into a social event, thanks to the live format. On the other hand, the combination of social media and live shopping creates a sense of exclusivity and urgency.

Responding to this phenomenon, Aska stated, “Consumers seek unique value from their shopping experience, and live shopping is one of the examples. Real-time shopping in limited time, spontaneous interaction with the seller and other shoppers, surprises from the host, and the perception as if they are competing for limited stock, will make a consumer become a loyal shopper.”

On the other hand, Jakpat highlights the existence of  affiliate links in online shopping. Serves as a powerful conduit between consumers and products, affiliate links promote a mutually beneficial relationship for both shoppers and content creators. These links, which are frequently included in social media posts or review websites, enable influencers or affiliates to recommend particular products to their audience. This symbiotic relationship between e-commerce, sellers, and content creators, promotes honest product endorsements and gives consumers more control over their buying experiences. Jakpat report reveal that 8 out of 10 online shoppers have clicked the affiliate link in social media, and more than half decided to buy from the link.

How much do consumers spend in a month for online shopping? Do consumers really visit live shopping and make their purchase? How about the competition among e-commerce?