The COVID-19 pandemic has accelerated the growth of social commerce, with Indonesia's TikTok Shop emerging as a rising star in the sector. As one of Southeast Asia's largest markets with a massive young population, Indonesia presents unique opportunities for cross-border sellers. This article examines the latest trends in Indonesia's TikTok Shop and recent commission policy changes in Malaysia's TikTok Shop that affect regional e-commerce strategies.
Indonesia's TikTok User Surge Reshapes Social Commerce Landscape
Since the pandemic began, TikTok's user base in Indonesia has experienced explosive growth. Data shows that while only 17% of Indonesians used TikTok in 2020, this figure skyrocketed to 40% by 2022—a 207.69% increase in just two years. Despite this rapid expansion, WhatsApp remains Indonesia's most widely used social platform with 95% user penetration, though its usage has declined slightly during the same period when TikTok gained momentum.
Facebook follows with 80% user penetration, while YouTube and Instagram maintain 79% and 48% respectively. Other platforms like Telegram (18%), Twitter (11%), and Line (5%) have more modest market shares.
This dramatic user growth has directly fueled TikTok Shop's expansion in Indonesia, quickly establishing it as the country's highest-grossing social commerce platform. For cross-border sellers, understanding this market is crucial for success.
Top 8 Best-Selling Products on Indonesia's TikTok Shop
Success in Indonesia's TikTok Shop requires deep knowledge of local consumer preferences. According to YouTubeIndri channel data, these eight product categories dominate sales:
- Cosmetics and skincare: Beauty products remain in high demand, with both skincare and makeup performing well.
- Women's fashion and accessories: Trendy clothing and accessories consistently rank among top sellers.
- Footwear (men's and women's): From athletic shoes to formal footwear, all styles find buyers.
- Kitchen equipment: As living standards improve, kitchen gadgets and appliances gain popularity.
- Bags: Various styles and materials attract fashion-conscious shoppers.
- Gadgets and electronics: Tech products appeal strongly to younger consumers.
- Men's fashion: Beyond women's clothing, men's apparel shows growing potential.
- Home decor: Decorative items and functional home goods see rising demand.
Avoiding Penalties: Common TikTok Shop Violations in Indonesia
Sellers must comply with platform rules to avoid point deductions that could impact store performance. Four frequent violations include:
- Delaying shipments beyond three days
- Seller-initiated order cancellations
- Violating product terms and conditions
- Providing inaccurate or misleading product information
Malaysia's TikTok Shop Commission Policy Update
Beginning March 1, 2024, TikTok Shop Malaysia will implement a 2% commission fee on all successfully delivered orders, plus a 6% VAT charge. According to TikTok Shop Academy, this change supports continued platform services for sellers and buyers.
Commission refunds will apply for returned items, with partial returns receiving proportional refunds. Notably, the 2% rate excludes VAT (making the effective rate 2.12%) and applies to the product price minus seller promotions (platform promotions aren't deducted). This policy currently affects only Malaysian domestic sellers.