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Lazada Is Making a Big Push to Recruit Sellers Affected By Indonesia's Ban

Jayson 08 Oct 2023 12:29

Indonesia has cracked down on social e-commerce platforms such as TikTok Shop in recent weeks to protect domestic businesses. President Joko Widodo recently said the influx of foreign imported goods offered by such platforms has led to a decline in sales for domestic companies.



Under the new regulations, the Indonesian government requires the country's e-commerce platforms to implement a minimum price of US$100 for certain goods purchased directly from overseas and ensure that all products provided should comply with local standards.



On the other hand, Lazada Indonesia CEO James Chang told employees at a staff meeting on Friday that the company is attracting sellers affected by Indonesia's latest e-commerce regulations.



According to a memo sent to employees after the town hall meeting, Chang said that since Tuesday, the company has waived fees for all sellers in Indonesia who conduct live sales exclusively on Lazada.

“For micro, small and medium businesses affected by recent regulatory changes, we are supporting them by onboarding them to Lazada,” he added.



Speaking at a staff meeting, Chang said "Recent regulatory changes have created a more positive and healthy competitive landscape for our industry's long-term growth".

He also said that new sellers who register themselves will enjoy 3 months of zero commission, 2 months of zero free shipping, and a seller solution policy worth IDR 300,000.



Lazada is the third-largest player in Indonesia's e-commerce market with a market share of 10%, behind Shopee (36%) and GoTo's Tokopedia (35%), according to Momentum Works. Meanwhile, Indonesia was also Southeast Asia's largest e-commerce market last year, accounting for 52% of the region's total merchandise volume.