HomeeCommerce NewsAlibaba's Lazada is luring e-commerce sellers in Indonesia due to ban

Alibaba’s Lazada is luring e-commerce sellers in Indonesia due to ban

You must be aware that there was a ban recently on the social media platforms that were also doing e-commerce in Indonesia and it meant that platforms such as TikTok and Facebook had to stop their live stream e-commerce in the country almost immediately so as to comply or face the wrath of complete ban which they did not want because of the huge audience they already have. Now, we are seeing the effects of this ban by the Indonesian government on other businesses as well which are gaining from it. In Indonesia, Alibaba operates its business under the name of Lazada which is an e-commerce marketplace.

Now, it is reported that Lazada actually wants to take the benefit of ban on social media e-commerce in the country with the help of luring e-commerce sellers on their own platform by waiving off a lot of fees involved in registration and more. Do note that the ban by Indonesian government is not on e-commerce entirely but just doing e-commerce while being a social media platform. This means that if you are having a separate platform for e-commerce then it is completely fine to operate in the country. Since Lazada is an e-commerce platform primarily, it means that they don’t have any problems with their operations.

Lazada’s CEO sent a memo to its employees saying For micro-, small and medium-sized enterprises impacted by the recent regulatory changes, we are supporting them by onboarding them to Lazada,” and “those specifically doing livestream sales on Lazada”. The reason why Indonesia decided to ban social media e-commerce was because they said “an influx of foreign imports, made available by such platforms, contributed to a sales decline for domestic businesses.”

As part of the benefits, Lazada’s CEO said, “new sellers who sign up on their own will enjoy zero seller commission for 3 months, zero free shipping fee for 2 months and 300,000 Indonesian rupiah ($19.19) worth of seller solutions credit.” He said that the new regulatory changes are meant to provide “a more positive, healthy competitive landscape for our industry’s long-term growth” during a townhall meeting addressing his employees.

Alf Alferez
Alf Alferez
Dedicated writer with a strong track record of developing customer loyalty and managing general office operations. Enjoy being a part of a company where my skills and creative ideas will benefit the overall productivity of the organization. I have a strong desire to work in helping make the world a better place. Please reach out to me on alf@ecommercenext.org

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