TikTok Wants to Partner with Tokopedia? Here's How It Compares to Other E-commerce Platforms

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Cindy Mutia Annur 07/12/2023 14:30 WIB

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According to DealStreetAsia, TikTok will collaborate with Tokopedia. Tokopedia is Indonesia's second most visited e-commerce site, with Shopee as its main competitor.

Number of Visits to Indonesia's 5 Largest E-commerce Sites (January-October 2023)*

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Number of Visits to Indonesia's 5 Largest E-commerce Sites (January-October 2023)*

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According to DealStreetAsia, a Singaporean financial news website, TikTok will collaborate with Tokopedia in the Indonesian e-commerce business.

"Discussions between ByteDance (TikTok's owner) and Tokopedia regarding a partnership and investment are in the final stages," said a DealStreetAsia source on Wednesday (December 6, 2023).

The DealStreetAsia source familiar with the plan said that ByteDance initially wanted a 10% stake in Tokopedia.

However, GoTo, Tokopedia's parent company, encouraged ByteDance to acquire a 50% stake and to run the e-commerce business segment.

DealStreetAsia mentions that the exploration of cooperation between ByteDance and GoTo has been ongoing since the Indonesian government banned TikTok Shop in September 2023.

Meanwhile, Trade Minister Zulkifli Hasan has given the green light to the TikTok-Tokopedia collaboration plan.

"Collaboration is allowed, except if it's opening a new business," said Zulkifli, as reported by Katadata on Wednesday (December 6, 2023).

Zulkifli stated that to date, TikTok has not applied for permission to open an e-commerce platform or TikTok Shop in Indonesia.

He emphasized that the operation of e-commerce businesses must comply with Minister of Trade Regulation (Permendag) No. 31/2023 concerning Business Licensing, Advertising, Guidance, and Supervision of Business Actors in Electronic Trade.

He said that the regulation was issued to support the empowerment of MSMEs and domestic e-commerce businesses, as well as to enhance consumer protection.

Tokopedia Visit Trends

Based on Similarweb data, Tokopedia is currently the second most visited marketplace e-commerce site in Indonesia, only behind Shopee.

In October 2023, the Tokopedia website recorded 95.5 million visits, a drop of approximately 25.45% year-to-date (YTD).

Visits to several of Tokopedia's competitor sites also decreased.

In October 2023, Lazada's website visits plummeted 55.48% (YTD) to 40.6 million, Blibli's website decreased 3.85% (YTD) to 27.5 million, and Bukalapak's website dropped 44% (YTD) to 11.2 million visits.

Meanwhile, its main competitor, Shopee, remained at the top with 243.4 million visits throughout October 2023, soaring 42.1% (YTD).

Of these five largest marketplace e-commerce sites in Indonesia, only Shopee experienced a significant increase in visitors.

The number of visitors to other e-commerce sites has tended to decrease from January to October 2023, as shown in the graph.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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