Tanah Abang Traders Dismantle The Origin Of The Proposal Of Cheap Selling Goods On TikTok Shop

Trade Minister Zulhas spoke with a trader at Tanah Abang Market. (Photo: Mery Handayani/VOI)

JAKARTA - Trading activities through social commerce platforms such as TikTok Shop are considered to be able to shift buyers from conventional trade to online or e-commerce.

Moreover, goods sold on the platform are much cheaper even below the capital price.

Then, where did the TikTok Shop seller get cheap goods?

One of the traders at Tanah Abang Market, Uni revealed, cheap goods sold on TikTok Shop are items that are not sold out.

These items, continued the Union, were passed to online traders on the TikTok Shop on a large scale, and also far below the market price.

"That's cold. So the goods that last year didn't run out, we sold cheaply to people who live shopping on TikTok. For example, there are 400 pcs, we usually sell Rp195,000 per pc, throw it at him 400 pcs at a price of only Rp95,000 per pc," the Union told VOI, written Wednesday, October 4.

The Union said that all of these cold goods had to be taken because they were to spend the stock of their belongings.

However, said the Union, unfortunately, the live shopping on TikTok Shop actually turned off its business.

"What is not good is that we have a brand, when it is live, we are given a look at our brand to the camera, and he said, 'we sell only Rp. 150,000, how can we get this price in the store'," said Uni.

Uni admitted that TikTok Shop was very disturbing to its business. This is because the selling price of products that are passed by his side to live shopping traders is far from the market price and the price of resellers.

Before TikTok Shop, Shopee also had a live. Lazada, Facebook, but it doesn't bother (sales at the store). I also made a preorder (PO) for resellers who were promoted on Facebook, they asked to make a clothing model, but I can't sell it either in the store," he said.

Therefore, the Union admits that it agrees with government regulations that TikTok Shop cannot serve buying and selling transactions in one application with social media at this time.

For your information, currently TikTok only has a business license as social media.

TikTok Shop, which is a service within the TikTok application, does not yet have a permit, therefore if TikTok wants to continue the service, then its business license must be changed.

The government has also issued new rules regarding trade through electronic systems (PMSE).

One of the things that is regulated in it is to prohibit social media from buying and selling transactions.

This rule is contained in the Minister of Trade Regulation Number 31 of 2023.