New social commerce regs a blow for ‘seamless’ obtaining experiences

In the past few of a long time, the South East Asian location has witnessed a exceptional growth​ in social commerce.

Nevertheless, it has not been without the need of its difficulties. For occasion, quite a few platforms lacked a seamless built-in payment procedure​, making inconvenience for prospects and sellers alike.

Possessing indigenous shopping features was Bytedance-owned TikTok Shop’s major gain in the sector. This seamless integration enhanced the browsing experience, building it much easier for end users to discover and invest in products without leaving the application.

“It was a distinct aggressive edge for TikTok Store in excess of marketplaces like Tokopedia, Shopee, Lazada just because it was so built-in. They could turn commerce suitable there. You can see how it can almost destroy a ton of the marketplace [sellers] overnight since it’s incredibly effective,” ​Manvi Kathuria, chief business enterprise officer, LEAP Commerce, a Singapore-based conclusion-to-stop e-commerce enabler and subsidiary of LUXASIA.

Even so, a new law has disrupted TikTok Shop’s dominance in Indonesia and marked a significant change in Indonesia’s e-commerce landscape.

On September 27, Indonesia banned the selling of merchandise on social media platforms below its new trade restrictions, prompting TikTok Indonesia to shut down TikTok Store on October 4.

“Social commerce is prohibited from facilitating payment transactions on its digital program and can only give and encourage products or expert services,” ​said Indonesia’s minister of trade Zulkifli Hassan, throughout a push convention.

A blow to grassroots sellers

The Ministry of Trade reported in a statement that this was a shift to “address unfair techniques in e-commerce that damage micro, small and medium enterprises (MSMEs).”