Latest news with #Tokopedia
Yahoo
6 days ago
- Business
- Yahoo
TikTok Continues to Face Challenges With its In-Stream Shopping Push
This story was originally published on Social Media Today. To receive daily news and insights, subscribe to our free daily Social Media Today newsletter. TikTok's plan to convert itself into a global eCommerce powerhouse continues to face challenges, with the platform's in-stream shopping options now struggling to gain significant ground in Indonesia, where TikTok had been seeing higher levels of shopping success. Last year, TikTok acquired local online retail provider Tokopedia, in order to comply with local regulations that limit social media companies from operating eCommerce platforms. The idea was that this would enable TikTok to both align with its legal requirements, while also piggybacking off of Tokopedia's success, with the shopping app having established itself as a key online commerce tool in the region. But reports suggest that it hasn't played out the way that TikTok hoped. According to Rest of World, TikTok has since pushed Tokopedia sellers to make TikTok-like content, which is very different from the static product shots they could add to Tokopedia. Sellers have also reported lower site visits, as well as higher fees and ad costs, which has prompted many of them to switch to other commerce platforms instead. So rather than building TikTok's online shopping presence, it's seemingly now taken it back a step. Which would be a particularly tough pill to swallow for TikTok, given that it paid $US840 million for Tokopedia, and TikTok had been gaining traction with its in-stream sales options in South East Asian markets. It hasn't, however, seen the same success in Western regions, where consumers continue to prefer to keep their shopping activity separate from their social and/or entertainment apps. For whatever reason, Western users haven't shown the same preference as Chinese digital consumers to cram as much functionality as they can into a single app, which is what's seen platforms like WeChat and TikTok become major money makers in the Chinese local market. And now, TikTok's sales push is stalling in other regions as well, and it'll be interesting to see whether TikTok looks to shift focus onto its ad business instead, if it can't gain real traction for its online shopping options. But then again, TikTok shopping is steadily rising, just not as fast as TikTok would like. Last month, TikTok reported that: 'Over the past year, our community of sellers has expanded into more than 750 categories, bringing shoppers an incredible selection of over 70 million products. So far in 2025, our growing community of shoppers, sellers, and creators has driven impressive momentum across the TikTok Shop platform. In the U.S., TikTok Shop sales have increased 120% compared to the same period last year.' So TikTok shopping is on the rise, but it's a far cry from the immediate success that the company saw with its shopping options in China. Indeed, shopping is now the top revenue stream for Douyin, the Chinese version of the app, with Douyin bringing in $US490 billion in gross merchandise value (GMV) in 2024 alone. By comparison, TikTok reportedly generated around $US33 billion in GMV, across all other markets. The numbers underline the potential, but also the challenge, in that TikTok has been pushing its shopping options for four years now, and they haven't gained at the same rate as they have in the Chinese market. But it's still potentially an area of opportunity. And while TikTok is facing pushback in some regions, it seems likely that it'll continue to plough on with its shopping options, with a view to tapping into that same potential in more regions. Challenges remain, but there's seemingly enough growth to keep TikTok focused on making this a thing, which is worth noting for online sellers. Recommended Reading TikTok Shares Data on Account Removals and Government Requests in 2024 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
14-07-2025
- Business
- Reuters
Indonesia to require e-commerce platforms to collect tax on sellers
JAKARTA, July 14 (Reuters) - Indonesia's finance ministry will require e-commerce platforms to collect and pass on an income tax on sales made by small- and medium-sized sellers, according to new regulations published on Monday. Platforms that meet certain criteria must withhold and pass on a 0.5% tax on sales made by sellers with an annual turnover of between 500 million rupiah to 4.8 billion rupiah ($30,800 to $296,000). They must also share the sellers' information with tax authorities. The ministry will notify a platform if it meets the criteria, which will be based on site traffic and total transaction value over the past 12 months. While the directive is effective immediately, platforms will be given a month to comply. Reuters reported exclusively last month on the plan to impose the tax. The tax office has said the rules are intended to tackle the "shadow economy". Indonesia's e-commerce association idEA has said its members would comply, but expressed concern over the implementation timeline, with the regulation set to impact millions of sellers. Indonesia's main e-commerce operators include ByteDance's TikTok Shop and Tokopedia ( opens new tab, Sea Limited's (SE.N), opens new tab Shopee, the Alibaba-backed ( opens new tab Lazada, Blibli ( opens new tab and Bukalapak ( opens new tab. Southeast Asia's largest economy has a booming e-commerce industry, with last year's estimated gross merchandise value of $65 billion expected to grow to $150 billion by 2030, according to a report by Google, Singapore state investor Temasek and consultancy Bain & Co. ($1 = 16,240 rupiah)
Business Times
26-06-2025
- Business
- Business Times
S-E Asia's e-commerce platform gross merchandise value growth rate eases: report
[SINGAPORE] South-east Asia's total e-commerce platform gross merchandise value (GMV) grew at a slower rate of 12 per cent year on year in 2024, as the leading platforms focused on a more rational and sustainable trajectory. Despite decelerating from the 15.2 per cent growth in 2023, the e-commerce platform GMV rose to US$128.4 billion in 2024 from US$114.6 billion in the year before, estimated consultancy firm Momentum Works in a report released on Thursday (Jun 26). With infrastructure maturing, 'efficiency, customer experience and service level have become a bigger focus for the ecosystem', it added. The GMV estimation covers transactions on only Shopee, Lazada, Tokopedia, TikTok Shop, Bukalapak, Tiki, Blibli, and Despite the easing growth rate, most South-east Asian countries still achieved double-digit growth year on year, with Thailand and Malaysia being the key drivers for the region's e-commerce GMV expansion, stated the report. Thailand recorded the highest GMV percentage increase, with a 21.7 per cent rise from US$19.3 billion in 2023 to US$23.5 billion the following year. Malaysia had the second-highest growth, going up 19.5 per cent from US$9.6 billion in 2023 to US$11.5 billion in 2024. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Singapore, on the other hand, registered the second-lowest GMV growth rate of 12 per cent, increasing from US$4.4 billion in 2023 to US$4.9 billion in 2024. Indonesia had the lowest GMV growth rate of only 5 per cent year on year, expanding from US$53.8 billion in 2023 to US$56.5 billion in 2024. Despite the slowdown, Indonesia remains the largest market in South-east Asia by contributing 44 per cent of the region's platform GMV in 2024, down from 52 per cent in 2022. Consolidation in the market led to the moderation of growth in the meantime, noted Momentum Works. E-commerce giant Shopee increased its regional market share to 52 per cent in 2024 from 48 per cent in the previous year. It had a market share of more than 50 per cent in all countries in South-east Asia, excluding Indonesia, where it had a 46 per cent share. TikTok Shop held the second-highest market share by GMV in the region. The report added that while TikTok Shop has gained market share, its top-line growth has moderated compared with previous years. This was attributed to a deliberate adjustment of strategy. The report also noted the completed back-end integration of TikTok Shop and Tokopedia, which TikTok Shop had acquired in December 2023. 'As a result, Tokopedia no longer needs to artificially boost GMV.' Lazada held the third-highest market share by GMV in the region, according to the report. 'After a major restructuring at the beginning of 2024, Lazada achieved positive Ebitda (earnings before interest, tax, depreciation and amortisation) and stabilised its GMV and regional market share.' Collectively, the top three regional platforms – Shopee, Lazada and TikTok Shop (excluding Tokopedia) – own more than 90 per cent market share in all markets, except Indonesia. The competition among South-east Asia's top platforms shifted from 'a race to the bottom' to a co-existence that is focused on return on investment, noted Momentum Works. It added that the region's e-commerce parcel volume is not that far behind the United States'. In 2024, South-east Asia shipped an average of 43.6 million parcels daily, close to the 61.3 million shipped daily by the US and significantly more than India, which ships approximately 15 million parcels a day. 'While still far behind China's 478 million, the region's e-commerce sector is already operating at a significant scale.' The report also noted that, in 2024, transactions worth approximately US$16.8 billion in GMV were carried out in South-east Asia outside of major platforms. This was the first time Momentum Works tracked non-platform e-commerce. These included transactions that happened on open-loop social platforms such as Facebook, multi-brand retailer sites, as well as orders placed via chat platforms such as WhatsApp. The total e-commerce GMV reached in the region was approximately US$145.2 billion, after accounting for non-platform GMV. 'Platform GMV is still decisively the majority of e-commerce in South-east Asia,' noted Momentum Works.
Time of India
26-06-2025
- Business
- Time of India
Indonesia e-commerce tax: Jakarta's bid to tackle shadow economy; new regulation for online shopping platforms
Indonesia is drafting a new regulation to tackle its 'shadow economy,' making changes to how sellers and platforms operate across the booming online shopping sector. The rule would require e-commerce platforms to collect and remit part of sellers' sales income to the government, the country's tax office said. Reuters had earlier reported that the plan involved a directive that the platforms must withhold a 0.5% levy on sales made by small and medium-sized sellers. Although the tax office did not announce a timeline, the rule could come into effect as early as next month, as per sources cited by the agency. 'The rule is still in the works and will be announced and explained to the public after,' the tax office said, adding that platforms and stakeholders have been consulted and have so far indicated support. However, Indonesia's e-commerce association, idEA, urged caution. While agreeing to comply with government policy, the group also highlighted the need for a phased implementation to avoid disrupting the operations of millions of sellers. The upcoming changes are expected to impact major online marketplaces, including TikTok Shop and Tokopedia (run by ByteDance), Shopee (Sea Ltd), Lazada (backed by Alibaba), Blibli, and Bukalapak. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với sàn môi giới tin cậy IC Markets Tìm hiểu thêm Undo According to one source, penalties for late reporting are also being considered. ByteDance, which operates Tokopedia is home to around 12 million sellers and with a transaction value of 249 trillion rupiah ($15.3 billion) in 2023, called for a realistic adjustment period. 'We hope its implementation takes into account the need for adequate preparation time for various aspects. This includes the technical readiness of platforms and the capacity of sellers, especially small and medium-sized enterprises, to comply,' TikTok stated. The tax office clarified that the levy is aimed at improving oversight of vendors who operate outside the tax system, often due to the perceived complexity of filing requirements. Indonesia's e-commerce sector continues to boom, with its gross merchandise value projected to more than double from $65 billion in 2023 to $150 billion by 2030, according to a report by Google, Temasek and Bain & Co. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Yahoo
26-06-2025
- Business
- Yahoo
Indonesia working on new e-commerce tax rule in bid to target 'shadow economy'
By Stefanno Sulaiman JAKARTA (Reuters) -Indonesia is working on a new regulation that will require e-commerce platforms to collect and pass on sellers' sales income in a bid to tackle the "shadow economy", its tax office said on Thursday, confirming a Reuters report earlier this week. Citing sources, Reuters reported exclusively on Tuesday about a planned directive that e-commerce platforms must withhold and pass onto the authorities a levy amounting to 0.5% of sales income from small and medium-sized sellers. Sources said the rule could be introduced as early as next month, though a statement from the tax office did not give any schedule amid concerns from some platforms that they would need time to implement such a directive. "The rule is still in the works and will be announced and explained to the public after," the statement said, adding that e-commerce platforms and other stakeholders have been consulted and have so far given their backing. Indonesia's e-commerce association idEA said on Wednesday that it will comply with any government policy, but expressed concern over implementation timelines, stressing that it needed to be handled carefully as it will impact millions of sellers. The changes would affect the country's main e-commerce operators, including ByteDance's TikTok Shop and Tokopedia Sea Limited's SE.N Shopee, Alibaba-backed Lazada, Blibli and Bukalapak one of the sources said. Sources also told Reuters there could be penalties for late reporting. ByteDance's TikTok, which runs Tokopedia, one of Indonesia's biggest e-commerce platforms, told Reuters in a statement that it would need time to implement the directives. Tokopedia has around 12 million sellers listed on its platform, and, in 2023, the total value of transactions reached 249 trillion rupiah ($15.3 billion), according to a company presentation. "We hope its implementation takes into account the need for adequate preparation time for various aspects. This includes the technical readiness of platforms and the capacity of sellers, especially small and medium-sized enterprises, to comply," TikTok said in the statement. The tax office said the regulation was intended to improve supervision of the "shadow economy" and vendors who do not pay taxes because of the perceived complexity of the filing process. Indonesia's has a booming e-commerce industry, with last year's estimated gross merchandise value of $65 billion expected to grow to $150 billion by 2030, according to a report by Google, Singapore state investor Temasek and consultancy Bain & Co. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
