TikTok retail is canceled in Indonesia

October 12, 2023 by
Frank Calviño

TikTok retail operation was canceled in Indonesia to comply with the country’s decision to ban e-commerce transactions on social media platforms. The cancelation of TikTok retail in the region is a massive blog to the social media fastest-growing market country in Asia.

A few months ago, the Indonesian government announced the new regulation, which prohibits social media companies from facilitating sales of products on their platforms, on Sept. 28 in a bid to protect small businesses from e-commerce competition, accusing the popular apps and websites of predatory pricing.

The Chinese-owned video-sharing app said in a statement it will stop facilitating e-commerce sales in TikTok Shop Indonesia by 5 p.m. Wednesday.

Indonesia’s Trade Minister Zulkifli Hasan said the ban aims to “prevent the domination of the algorithm and prevent the use of personal data in business interests" and "create a fair, healthy and beneficial electronic commerce ecosystem,” according to a statement released by the Trade Ministry when the ban was announced. 

TikTok retail is growing massively 

TikTok, owned by the Chinese group ByteDance, expects to reach 20 billion dollars (18.75 billion euros) in e-commerce this year, more than quadrupling last year's figures, when it invoiced 4.4 billion dollars (4.125 billion euros), according to Bloomberg.

The main explanation for this exponential upturn in its gross merchandise sales is the expected growth in Southeast Asia. In this market, TikTok is making a notable commitment, for example, in Indonesia, where now the social network will surely face considerable looses. 

TikTok's e-commerce platform allows customers to purchase products through links in the app during live broadcasts. They can also access marketplaces through a tab on the app's home screen to search and browse.

Beyond Southeast Asia, the company is also working to expand its sales in the United States and Europe. In fact, TikTok Shop debuted this month in the U.S. market with some 150 million active users.

At least 95.8% of Europeans have shopped online during 2024 Q1
At least 95.8% of European consumers shopped online in the first quarter of this year. In the United Kingdom, that percentage was 93%. In the Netherlands, 96% of consumers shopped...
May 27, 2024
Temu's parent company, PDD Holdings, increased its profits by 245% during the 2024 Q1
Chinese group PDD Holdings, owner of e-commerce platform Temu and Pinduoduo, posted an attributable net profit of 27.997 billion yuan (3.592 billion euros) in the first quarter of 2024, an...
May 24, 2024
Walmart will have three-quarters of its new sellers China-based!
It is expected that in 2024 at least three-quarters of new sellers in Walmart's marketplace will come from China, surpassing records set against the previous month, all with a clear...
May 22, 2024
Top crossmenu

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close