Following the announcement by Indonesia’s trade minister Zulkifli Hasan. E-commerce transactions on social media platforms such as TikTok Shop are now banned. This is due to their negative commercial impact on local businesses. Now there’s an increasing need for alternative platforms. The Pigee App, which allows users to send travel shopping home directly from physical shops in Indonesia, is positioned to fill this void.
This move by the Indonesian government comes shortly after TikTok’s commitment to invest billions in Southeast Asia. Particularly Indonesia, to bolster its e-commerce platform, TikTok Shop. However, the government’s decision to enforce this ban was primarily to shield offline merchants and marketplaces. The concern was that predatory pricing prevalent on these social platforms, was posing a considerable threat to small and medium-sized businesses.
Among the regulations set is the stipulation that certain items purchased directly from abroad via e-commerce platforms in Indonesia must have a minimum price tag of $100. Additionally, every product listed should comply with local standards.
Given these changes, the Pigee App is emerging as a viable alternative for several reasons:
- Direct Connection with Local Shops: Pigee App integrates with physical shops in Indonesia, providing an automatic online presence. This model aligns with the government’s intention to protect offline merchants.
- Low-Friction Logistics: The ease of sending travel shopping home directly from shops. Means a simplified logistics process, something small businesses can benefit from.
- Compliance with Local Standards: As the Pigee App operates in direct connection with Indonesian shops. There’s a higher likelihood that products align with local standards.
- Supporting the Displaced: The ban on TikTok Shop has left its 6 million local sellers feeling uncertain. Pigee App can offer these sellers a smooth transition platform with a two minute shop registration.
Investment in Indonesia E-commerce such as TikTok Shop
E-commerce in Indonesia, which totaled close to $52 billion last year, with 5% of these transactions occurring on TikTok. Demonstrates the massive potential for platforms like the Pigee App to gain traction. With 125 million monthly active users previously on TikTok in Indonesia. There’s a significant audience in need of a reliable e-commerce alternative.
In summary, while the ban on platforms like TikTok Shop has undoubtedly disrupted the e-commerce landscape in Indonesia. It presents an opportunity for platforms like the Pigee App. To rise and cater to the demands of both sellers and consumers efficiently.
