With TikTok Shop cast adrift at SEA, will Shopee and Lazada sail right through?

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Hello reader,

Once bitten, twice shy.

Three years ago, I bought some clothes from a seller on Instagram. The discounts were amazing, so I ordered in bulk. But after weeks of waiting, none of my dresses arrived. That’s when I realized the page was a fraud.

Nowadays, I choose cash on delivery whenever I order anything on Instagram. I recently purchased some spinner toys for my child, and I paid the rider in cash when I received the parcel. But lo and behold, the package didn’t contain any of the items I had ordered. After this, I decided: no more shopping on social media.

Apparently, I’m not the only one who imposed a shopping ban. In September, Indonesia began prohibiting direct transactions on social media platforms like TikTok, which has 125 million monthly active users in the country.

While many sellers are staying put on TikTok Shop, the ban has certainly dealt a blow to the platform’s ecommerce dreams in Southeast Asia. Complaints against TikTok from officials in Malaysia and Vietnam in recent weeks certainly haven’t helped.

In this week’s Big Story, Benjamin Cher of The Business Times analyzes if TikTok’s loss would be a gain for ecommerce marketplaces like Shopee and Lazada. Can they turn this to their advantage? Read on to find out.

— Samreen

THE BIG STORY

Image credit: Timmy Loen

Shopee, Lazada may struggle to fill void left by TikTok Shop
TikTok must also decide whether Southeast Asia’s political dynamics are worth the commitment.

3 Trends to keep an eye on

Hot stocks, earnings reports, restructuring, pressure from activist investors, and more.

Photo credit: WeWork

2 Eye-popping facts

The one you didn’t see coming