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Empowering Local Sellers: TikTok Shop’s New Era of E-Commerce in Malaysia
Summary:
Empowering Local Sellers through TikTok Shop
TikTok Shop has significantly enhanced opportunities for local sellers, particularly micro, small, and medium enterprises (MSMEs), by integrating them into its Shoppertainment ecosystem. The recent TikTok Shop Summit in Malaysia highlighted three major updates aimed at transforming online shopping. With over 98% of the 1 million sellers on TikTok Shop in Malaysia being MSMEs, these updates are poised to benefit small businesses and local entrepreneurs the most.
Growth in Discovery E-Commerce
TikTok Shop has experienced substantial growth, with a 2.2x increase in sales, a 1.8x rise in sellers, and a 1.8x boost in affiliate creators in the first half of 2024. This growth reflects a shift in Malaysian consumer behavior towards discovering brands and products through engaging content. Local entrepreneurs can leverage TikTok Shop’s full-funnel solutions to build authentic communities and shorten the customer journey from browsing to purchasing. A notable success story is Dapur Pak Amir, a local disabled seller who gained over 37,500 followers and sold more than 19,200 products, attracting interest from international markets like Japan, Dubai, and the USA.
Enhanced Support and Incentives for Sellers
TikTok Shop has introduced several initiatives to support sellers, including subsidizing 5x more vouchers and providing dedicated traffic exposure, especially during key sales events like 10.10, 11.11, and 12.12. The platform has also launched a stackable Unlimited Free Shipping voucher, allowing shoppers to combine multiple discounts in a single checkout. Additionally, the new Bonus Cashback feature enables customers to accumulate cashback for extra discounts on eligible products. These measures are designed to drive conversion and revenue for sellers while offering greater value to consumers.
Strengthening #JomLokal Initiatives
In collaboration with the Ministry of Domestic Trade and Cost of Living (KPDN), TikTok Shop is promoting the Kempen Beli Barangan Malaysia (KBBM) as part of its #JomLokal initiative. This partnership aims to empower over 8,000 local sellers by showcasing 300,000 locally-made products on a dedicated KBBM page. From now until December 31, users can search for “KBBM” or “Kempen Beli Barangan Malaysia” on TikTok Shop to discover and support local products. Shoppers can enjoy discounts of up to 30%, Free Shipping vouchers, and local creator spotlights to encourage support for Malaysian brands.
Key Points:
Key Point 1: TikTok Shop’s Growth and Impact on Local Sellers
Key Point 2: Enhanced Support and Incentives for Sellers
Key Point 3: Strengthening Local Initiatives through #JomLokal
Resources:
TikTok Shop
TikTok Shop is an e-commerce platform integrated within the TikTok app, allowing users to discover and purchase products directly through engaging content. It provides a comprehensive Shoppertainment ecosystem that combines entertainment and shopping, offering full-funnel solutions to shorten the customer journey from browsing to purchasing. TikTok Shop supports local entrepreneurs by providing tools and resources to build authentic communities and reach a global audience. The platform’s innovative features, such as stackable vouchers and Bonus Cashback, enhance the shopping experience for consumers while driving sales for sellers.
Kempen Beli Barangan Malaysia (KBBM)
The Kempen Beli Barangan Malaysia (KBBM) is a campaign initiated by the Malaysian government to encourage the purchase of locally-made products. In collaboration with TikTok Shop, the campaign aims to empower local sellers by showcasing their products on a dedicated KBBM page. The initiative provides incentives such as discounts, Free Shipping vouchers, and local creator spotlights to promote Malaysian brands. By supporting KBBM, consumers can contribute to the growth of local businesses and the Malaysian economy.
Dapur Pak Amir
Dapur Pak Amir is a local disabled seller on TikTok Shop who has successfully leveraged the platform’s features to grow his business. With over 37,500 store followers and more than 19,200 products sold, Dapur Pak Amir has attracted interest from international markets such as Japan, Dubai, and the USA. His success story highlights the potential for local entrepreneurs to reach a global audience through TikTok Shop’s Shoppertainment ecosystem.
TikTok Shop Seller Center
The TikTok Shop Seller Center is an online portal where aspiring entrepreneurs, local MSMEs, and homegrown brands can start their e-commerce journey. It provides resources and tools to help sellers set up their online stores, manage inventory, and engage with customers. The Seller Center also offers step-by-step tutorial courses through the TikTok Shop Academy, equipping sellers with the knowledge and skills needed to succeed in the digital economy.
Ministry of Domestic Trade and Cost of Living (KPDN)
The Ministry of Domestic Trade and Cost of Living (KPDN) is a Malaysian government agency responsible for regulating domestic trade and ensuring consumer protection. In collaboration with TikTok Shop, KPDN is promoting the Kempen Beli Barangan Malaysia (KBBM) to support local sellers and encourage the purchase of locally-made products. The partnership aims to empower over 8,000 local sellers and increase the visibility of 300,000 Malaysian products through TikTok Shop’s platform.
Next Steps:
1. **Explore TikTok Shop**: For local entrepreneurs and MSMEs, consider setting up a store on TikTok Shop to leverage its Shoppertainment ecosystem and reach a wider audience.
2. **Participate in KBBM**: Support the Kempen Beli Barangan Malaysia initiative by promoting and purchasing locally-made products through TikTok Shop.
3. **Utilize Seller Resources**: Take advantage of the resources and tutorials available at the TikTok Shop Seller Center to enhance your e-commerce skills and grow your business.
co-Founder of Pongo