It seems that TikTok is set to launch its e-commerce unit, TikTok Shop in Malaysia soon as the company is already actively recruiting local e-commerce talents and business operators in our country. Integrated seamlessly with the TikTok app, TikTok Shop allows sellers to easily list products up for sale and buyers to purchase them without even leaving the TikTok app.
Part of the platform’s big push into Southeast Asia, TikTok Shop has already been operational in Indonesia since the company performed A/B testing there in February 2021. Furthermore, TikTok Shop is also poised to enter Thailand and Vietnam with both countries potentially having similar launch dates with Malaysia.
The launch of TikTok Shop in Southeast Asia puts it in direct competition with the region’s two e-commerce giants, Shopee and Lazada. As Tencent is behind Shopee and Alibaba behind Lazada, the emergence of TikTok Shop sees three Chinese tech giants competing for market shares in our region's e-commerce sector.
One advantage that TikTok has over the other two is its huge traffic as the platform has 240 million monthly active users in Southeast Asia. Furthermore, TikTok capitalises on that user base by integrating TikTok Shop into the search and live streaming function on the app.
Essentially, sellers can directly sell and promote their products by simply creating a TikTok video or going live on the app. Sellers will also have a special TikTok Shop icon added to their user profiles and a special tab on their public profiles which allows other users to browse through the products on sale by the seller.
TikTok Shop will also introduce several modes of payment, including Cash On Delivery (COD). In Malaysia, the limit for COD is a whopping RM10000 which is kind of crazy!
The platform will also have two shipping methods in our country, which are ‘Ship by TikTok’ or ‘Ship by Seller’. For the former, the shipping will utilise TikTok’s logistic partners and for the latter, it is up to the seller's preference. Furthermore, TikTok Shop is reportedly offering free deliveries for a limited period during its launching.
Speaking of which, no date has been announced just yet for TikTok Shop’s launch. Let's hope that the platform will launch soon as it'll be interesting to see how TikTok Shop performs in our country.
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