Over 50% Sellers of Indonesia TikTok Shop Are Under Inventory Pressure
Jayson 07 Oct 2023 09:24
Recently, to comply with Indonesia's newly revised regulations, TikTok Shop announced that e-commerce transactions in Indonesia will be officially closed starting from October 4.
After that, sellers can either divert traffic to their other online stores or build an independent Indonesian station as soon as possible. But for sellers with large inventories in Indonesia, their primary issue is to step up inventory clearance and minimize losses.
Indonesia is currently TikTok's most mature market in Southeast Asia, with approximately 124 million users. In just a few years, a large number of merchants have created a lot of wealth through TikTok Shop.
Therefore, the speed with which Indonesia introduced its policies this time caught many merchants off guard, and the inventory overstock has become the primary problem that needs to be solved.
Previously, a spokesperson for TikTok Indonesia publicly responded that social e-commerce was born to solve the practical problems of local traditional small sellers. While respecting local laws and regulations, the company also hopes that these regulations will take into account its impact on the livelihoods of TikTok Shop's more than 6 million sellers and nearly 7 million related creators
The TikTok Indonesian market carries the fate of 6 million sellers, including not only cross-border practitioners but also many local small businesses. Industry insiders said that Indonesia prohibits TikTok Shop from conducting e-commerce sales, and small Indonesian stores must clear their inventory as soon as possible.
According to a survey on the inventory situation of Indonesian sellers on TikTok Shop, the current inventory crisis of sellers is relatively severe. Survey data shows that 33% of sellers have a large amount of inventory in TikTok Shop Indonesia, 22% of sellers have a small amount of inventory in TikTok Shop Indonesia, and 45% of sellers said they have no inventory in TikTok Shop Indonesia. It can be seen that more than 50% of sellers need to deal with inventory problems
This is a dark time for sellers. "Lao Liu, a cross-border seller, said that from now on, the platform cannot directly link to sell goods. For sellers who have invested a lot of manpower, material resources, and financial resources and have large overseas inventory, failed to effectively solve the problem of overstocked inventory may become the trigger for some sellers to be crushed
It is worth noting that many sellers choose to wait and see. There is also a group of Indonesian cross-border e-commerce sellers who have given up cross-border business and switched to local business. An Indonesian TikTok seller said that if he could transform into a local brand, he might be able to avoid some risks.
After that, sellers can either divert traffic to their other online stores or build an independent Indonesian station as soon as possible. But for sellers with large inventories in Indonesia, their primary issue is to step up inventory clearance and minimize losses.
Indonesia is currently TikTok's most mature market in Southeast Asia, with approximately 124 million users. In just a few years, a large number of merchants have created a lot of wealth through TikTok Shop.
Therefore, the speed with which Indonesia introduced its policies this time caught many merchants off guard, and the inventory overstock has become the primary problem that needs to be solved.
Previously, a spokesperson for TikTok Indonesia publicly responded that social e-commerce was born to solve the practical problems of local traditional small sellers. While respecting local laws and regulations, the company also hopes that these regulations will take into account its impact on the livelihoods of TikTok Shop's more than 6 million sellers and nearly 7 million related creators
The TikTok Indonesian market carries the fate of 6 million sellers, including not only cross-border practitioners but also many local small businesses. Industry insiders said that Indonesia prohibits TikTok Shop from conducting e-commerce sales, and small Indonesian stores must clear their inventory as soon as possible.
According to a survey on the inventory situation of Indonesian sellers on TikTok Shop, the current inventory crisis of sellers is relatively severe. Survey data shows that 33% of sellers have a large amount of inventory in TikTok Shop Indonesia, 22% of sellers have a small amount of inventory in TikTok Shop Indonesia, and 45% of sellers said they have no inventory in TikTok Shop Indonesia. It can be seen that more than 50% of sellers need to deal with inventory problems
This is a dark time for sellers. "Lao Liu, a cross-border seller, said that from now on, the platform cannot directly link to sell goods. For sellers who have invested a lot of manpower, material resources, and financial resources and have large overseas inventory, failed to effectively solve the problem of overstocked inventory may become the trigger for some sellers to be crushed
It is worth noting that many sellers choose to wait and see. There is also a group of Indonesian cross-border e-commerce sellers who have given up cross-border business and switched to local business. An Indonesian TikTok seller said that if he could transform into a local brand, he might be able to avoid some risks.
