Heaptalk, Jakarta — PT GoTo Gojek Tokopedia Tbk delivered the latest update regarding the TikTok system migration process to Tokopedia after completing the transaction early this year. According to the CEO of GoTo, the company aims to complete the entire migration process in March – April 2024.
As he stated during the virtual press conference, “Our system integration and migration process has gone well. All parties have communicated with the relevant ministries. Based on our observation, this process is nearly 100% complete. We expect to complete this matter no later than 1.5 months ahead,”
In a further statement, Patrick claimed this integration would separate the TikTok and Tokopedia electronic systems following Minister of Trade Regulation (Permendag) No. 31 2023. If the migration process is accomplished, purchase transaction activities such as product display pages, order completion, and transaction processes will be managed by the Tokopedia backend system.
“We continue to consult closely with the Ministry to remain subject to the applicable regulations. Promotions will be carried out on the TikTok electronic system, while the overall shopping experience and transaction process will be carried out on the Tokopedia backend. Transaction settlement will be carried out in the payment system as usual,” Patrick added.
Patrick also admitted that this integration could combine conventional e-commerce with a live commerce scheme to advance new features with the TikTok community, which is expected to contribute to the growth of national MSMEs.
Moreover, along with the completion of the integration process between TikTok and Tokopedia, Patrick conveyed several benefits from this strategic partnership, including:
- Around 97% of merchants feel the positive impact of the TikTok and Tokopedia collaboration.
- Data disclosed that around 41% of respondents reported a 20% – 26% increase in sales through the Buy Local campaign.
- MSME respondents increased their employees by around 1 – 10 employees due to the Tokopedia and TikTok affiliation.
GoTo’s Tokopedia and TikTok partnership has been commenced since the launch of the Beli Local campaign in December last year by involving thousands of Indonesian merchants. As a result, Patrick disclosed that the merchants had increased their product sales by up to 125% compared to September 2023.
GoTo boosts performance through e-commerce service fee
As the company continues to amplify its core business in on-demand and fintech, its e-commerce unit Tokopedia is claimed to contribute significantly to the financial performance of GoTo in 2024. In its agreement with TikTok, the technology ecosystem projects to gain revenue from the e-commerce service fees of Tokopedia quarterly. The company will record revenue from e-commerce service fees as of February 1, 2024.
Further, the business performance output in the e-commerce segment is expected to turn positive from the previous negative of US$134 million for the first nine months of 2023 to gain an expected US$11.4 million for its service fee outcome this year.
“GoTo’s e-commerce business unit will generate positive cash flow, mainly boosted by this collaboration. This output shows the importance of the e-commerce unit service fee for the company to achieve good performance this year. We will sustainably invest in our long-term business enhancement to boost our competitiveness. ” Patrick concluded.
