65

TikTok Shop Closed for 2 Months, Which E-commerce Consumers Turn to?

There is an interesting issue in terms of online business this year, namely TikTok Shop which was closed for two months. Meanwhile, in terms of sales strategy, live shopping features and affiliate links are still in demand.

Jakpat conducted a survey to find out the behavior and habits of Indonesians who like to shop online in the second half of 2023. The report, which involved 1509 respondents, also looked at how shopping platforms are used in e-commerce and quick-commerce as well as sales strategies, especially live shopping and affiliate links.

The survey results stated that 88% of respondents made online transactions in the second half of 2023. As many as 43% of e-commerce users like to shop online at 18.01-21.00 WIB, while quick-commerce users at 09.01-12.00 WIB with a percentage of 46%.

Online shopping payments

Digital wallets (e-wallets) are the most widely used payment method by e-commerce buyers (73%). Furthermore, there is cash on delivery (COD) and mobile/internet banking systems with 58% and 42% respectively. This trend also applies to quick-commerce payments with e-wallet percentages of 76%, COD 50%, and mobile/internet banking 48%.

The amount of e-commerce users spending is almost twice of quick-commerce users. The average shopping expenditure in e-commerce per month is Rp429,509 while in quick-commerce is Rp227,222.

Live shopping & affiliate link

Live shopping and affiliate links are two familiar online sales strategies. As many as 87% of respondents claimed to have watched live shopping and 77% of them made transactions via the feature.

Head of Research Jakpat, Aska Primardi, assessed that the live shopping model does provide a new and unique experience for consumers. It makes sense that consumers interested in live shopping in semester 2 will increase compared to semester 1 2023*.

“It’s not surprising that they are interested in this experience. Although this live shopping option will not replace 100% of online commerce transactions in e-commerce,” he said.

Meanwhile, 4 out of 5 online shoppers have opened affiliate links from social media and 70% of them decided to buy the product.

When TikTok Shop vacuum

In the second half of 2023, TikTok Shop was closed on October 4, 2023 due to the policy of banning social commerce services based on Minister of Trade Regulation Number 31 of 2023. However, this shopping service will reopen on December 12, 2023 by cooperating with Tokopedia.

The temporary closure was quite influential. The percentage of Tiktok Shop users decreased from 22% to 17% compared to the previous semester. This contrasts with Lazada users who rose 6% from 26% to 32%.

Meanwhile, the percentage of users of two other e-commerce, namely Shopee and Tokopedia, has not changed with 76% and 38% respectively throughout 2023.

“With the vacuum of TikTok Shop in the middle of semester 2, shoppers try to find the same experience through other platforms. From here, you can see Shopee Live which has increased for live shopping. This is reasonable considering that overall, the most popular e-commerce platform is still Shopee,” said Aska.