In early October this year, the e-commerce industry in Indonesia experienced significant upheaval following the closure of TikTok Shop. This decision came after the government issued Trade Minister Regulation Number 31 of 2023 on September 26. In response to this closure, two major Chinese e-commerce platforms, Shopee and Lazada, emerged as the most aggressive players in developing their businesses.
According to a report from Macquarie Securities, both platforms lead efforts in business development after the closure of TikTok Shop. In their study, Shopee and Lazada were identified as the most aggressive in implementing their growth strategies. [Source: Katadata]
Canggih Satriatama, VP Category Management Lazada Indonesia, revealed that the number of new sellers on the Lazada platform significantly increased during October. Although he did not specify the exact number, this indicates a positive trend in the growth of e-commerce businesses on Lazada. Additionally, Lazada provides incentives to new sellers by waiving administrative and shipping fees.
As part of the strategy to attract more sellers, Lazada offers benefits such as:
Free Admin Fees for Three Months: New sellers do not need to pay administrative fees for the first three months after registering.
Free Shipping for Two Months: Lazada provides incentives in the form of free shipping for two months to new sellers.
Credit Solution of IDR 300,000: Lazada sponsors a credit solution of IDR 300,000 that sellers can use to advertise on the platform. This gives sellers the opportunity to increase the exposure of their products.
Canggih explains that this credit solution can be used to promote sellers’ products, helping them be more easily discovered by buyers and dominate user search results.
On the other hand, Shopee is also involved in a significant growth strategy post the closure of TikTok Shop. Although not directly commenting on the increase in the number of users, sellers, or content creators, Monica Vionna, Head of Marketing Growth Shopee Indonesia, mentioned that various factors influence the e-commerce industry, with discounts considered a key factor in increasing transactions.
In addition to Shopee and Lazada, DCT Agency, previously a top mcn of TikTok Shop, has transitioned to and dived into Shopee after the closure of TikTok Shop on October 4, 2023. They invite interested parties to join as Shopee affiliates with DCT Agency, promising various benefits.
With dynamic changes post the closure of TikTok Shop, Shopee and Lazada play a crucial role in filling the gap left by the platform. With aggressive growth strategies and incentives for sellers, both aim to expand their user base and increase transactions in an increasingly competitive e-commerce market. For sellers and customers, this may be the opportune time to take advantage of the various promotions and opportunities offered by Shopee and Lazada.
