The failure of Tuke Shop in Indonesia was something no one expected.

Previously, Tuke Shop generated high monthly profits for Indonesia and sustained the survival and livelihoods of 6 million local small businesses. With such intertwined interests, the sudden restriction of Tuke was a heavy blow for all parties involved.

For a time, Indonesia's e-commerce market was in turmoil.

Tokopedia May Become the “King of Picking Up Bargains”

Recently, the parent company of Indonesia's local e-commerce platform Tokopedia announced a partnership with social media platform Instagram to promote its e-commerce business. This move aims to leverage Instagram's huge influence and traffic to expand its sales channels.

Prior to this, Tokopedia had already reached a preliminary cooperation with Meta, allowing Tokopedia sellers to solve marketing problems by placing ads on Instagram or Facebook.

In addition, Meta has added a live streaming entry on Instagram, allowing users to broadcast live on both the Tokopedia app and Instagram.

From this perspective, although it is still unclear how the market share left by Tuke's restriction will be divided, as a local e-commerce platform in Indonesia, it is inevitable that Tokopedia will get a share of the pie.

The only suspense is whether Tokopedia can become the biggest “king of picking up bargains”.

Image source: katadata.co.id

Although it was previously predicted that Tuke would be the most suitable partner for Tokopedia, in reality, it chose Instagram. There may be deeper considerations behind this, which we do not know.

But it is obvious that Tokopedia's intention to develop social e-commerce is now clear.

Seizing the Indonesian Market

In recent years, social e-commerce platforms in Indonesia, such as Tuke Shop, have led the trend of live-streaming sales, effectively stimulating consumers' enthusiasm for shopping.

Data shows that the number of people in Indonesia who search for and purchase goods through social media is close to 50% of the total population.

It should be noted that Indonesia's total population exceeds 276.4 million, so nearly 50% is a significant concept. If such huge purchasing power is unleashed, it will generate enormous profits.

Image source: Meltwater

Against this backdrop, Tokopedia is keeping up with the trend and joining the ranks of social e-commerce.

In September this year, Tokopedia launched an affiliate marketing program called “Tokopedia Affiliate”, which allows sellers to paste product links in their social media copywriting. This initiative has effectively helped sellers promote and market their products.

This social marketing strategy has proven to be highly effective.

Indonesia's social e-commerce market is experiencing explosive growth, with Tokopedia's performance particularly outstanding.

This platform not only attracts the attention of many consumers, but has also enabled many sellers to earn considerable income through its affiliate marketing program.

The core of the affiliate marketing program is that sellers can paste product links in their own social media copywriting, thereby guiding potential consumers to their product pages.

This strategy is not only effective, but also highly targeted. Because these links are tailored by sellers according to their product characteristics and target consumer groups, they can better attract the attention of target customers.

Image source: rejogja

For Tokopedia, the successful implementation of this strategy has not only increased user stickiness on the platform, but also brought more potential consumers to the platform.

Because when sellers gain income through the affiliate marketing program, they are more motivated to promote and market products, thereby attracting more consumers to the Tokopedia platform.

From the perspective of market competition, Tokopedia's move can be seen as absorbing the remaining traffic from Tuke Shop, accelerating Tokopedia's further progress in capturing Indonesia's social e-commerce sector.

In the future, as Indonesia's social e-commerce market continues to expand and competition intensifies, Tokopedia's affiliate marketing program is expected to play an even greater role.

Meanwhile, with the continuous development of technology, we can foresee that future social e-commerce will become more intelligent, personalized, and precise, better meeting the needs and expectations of consumers.

In this process, Tokopedia will undoubtedly continue to play an important role.