Advantages of TikTok Shop Compared to Other Social Media

Sheila Silvia Permatasari, Sihar Tambun and Nita Felicia

University 17 August 1945 Jakarta, Jl. Sunter Permai Raya, North Jakarta, Indonesia

Keywords: TikTok Shop, NVivo, Advantages.

Abstract: This research aims to analyze the advantages and attractiveness of the TikTok Shop application. The

research data sources are Online News, YouTube, and research articles with a time span of 3 years,

particularly from 2021 to 2023. Data sources are selected based on credibility and suitability of the data to

the problem being studied. Data processing uses NVivo 12 Plus software. There are four stages of data

processing, specifically the data input process, coding process, visualization process, and conclusion

determination process. Coding validity was evaluated using a triangulation approach. The research results

obtained six factor points that might explain the advantages of TikTok Shop. First, TikTok Shop provides

lots of promos, discounts, and free shipping. Second, TikTok Shop has many active users. Third, ease of

transactions and use of the TikTok Shop. Fourth, features that are easy to understand. Fifth, The TikTok

Shop algorithm is easy and customizable to use. Sixth, a unique way of promotion using content and live. If

you want to learn more about the TikTok Shop application and its advantages, then these six factor points

are recommended for analysis. For students who are still quite unfamiliar with using TikTok Shop, these six

factors can be used as a guide and reference. With these six factors, it is hoped that it can become a learning

reference for developing the advantages of TikTok Shop in the era of digitalization in the future.

1 INTRODUCTION

The phenomenon of the TikTok application

booming in society is one of the many phenomena

occurring in Indonesia (Riyanto, 2023). The TikTok

application platform is not only a place for people to

be creative, create content, or a source of

entertainment, but this application is also used for

selling. Named TikTok Shop, it is a social trading

platform that offers unique advantages over other

social media platforms. Recorded sales for the

period 1 September - 1 October 2023 reveal that the

sales value at the TikTok Shop for the fast-moving

consumer goods or FMCG category reached IDR

1.33 trillion in Indonesia (CNBC Indonesia, 2023).

This is in line with TikTok officially closing the

TikTok Shop in Indonesia on Wednesday 4 October

2023 at 17.00 WIB. Of the total transactions, the

sales value occurred in the beauty care category

amounting to IDR 722 billion, food and beverage

amounting to IDR 272 billion, mother and baby

amounting to IDR 204 billion, health amounting to

IDR 132 billion, and home equipment amounting to

IDR 1 billion (Diah Ananda Kharisma, 2023). Thus,

TikTok Shop has an impact on 17,000+ sellers,

3900+ FMCG brands and 118,000+ product listings

in the beauty care, food and drink, mother-baby,

health, and home equipment categories. Here are

several main advantages that make TikTok Shop

popular with users, the high number of active users

and an algorithm that is adjusted to meet their

preferences (Nurhikmah, 2023). This makes it easier

for businesses to reach a wider audience and

increase their sales. Additionally, these algorithms

help users find products relevant to their interests,

making the shopping experience more personalized

and enjoyable. This contrasts with other e-commerce

platforms which may have a more general approach

to product recommendations. Another advantage of

TikTok Shop is the many promotions, discounts, and

free shipping options (Kbr Ragam, 2023). These

incentives encourage users to make purchases and

can help businesses increase sales and customer

loyalty. Apart from that, the registration process is

easy, and the transactions are safe (Ardiana, 2023).

This ease of use and transaction security are

important factors in building customer trust and

establishing a positive reputation for the business.

TikTok Shop also offers unique ways to promote

products, such as using creative content and live

288

Permatasari, S., Tambun, S. and Felicia, N.

Advantages of TikTok Shop Compared to Other Social Media.

DOI: 10.5220/0012580700003821

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 4th International Seminar and Call for Paper (ISCP UTA ’45 JAKARTA 2023), pages 288-293

ISBN: 978-989-758-691-0; ISSN: 2828-853X

streaming (Rahmanda, 2023). This approach is more

engaging and interactive than traditional advertising

methods and allows businesses to showcase their

products in a more authentic and relevant way.

Additionally, TikTok's algorithm continues to

evolve, providing opportunities for businesses to

reach new audiences and increase their market reach

(Shobirin, 2023). This feature is especially useful for

small businesses and startups who may not have the

resources to invest in expensive marketing

campaigns. In conclusion, TikTok Shop offers

unique advantages over other social media

platforms, such as personalized algorithms, abundant

promotions, and creative promotional methods

(Sabrina, 2021). These features make it a valuable

tool for businesses to increase sales and reach a

wider audience. However, it is important to note that

TikTok Shop is not without risks, as there are

concerns regarding security and privacy. Therefore,

businesses and users must be careful and take

appropriate measures to protect themselves when

using TikTok Shop (Kamajaya, 2022).

2 LITERATURE REVIEW

The word Excellence comes from the root word

superior. Excellence comes from the Latin word

“praeeminere” which means to rise above or excel.

Excellence has a meaning in the class of nouns or

nouns so that excellence can express the name of a

person, place, or all objects and everything that is

objectified. Excellence is the quality of being

superior. This is a type of high status or privilege for

anything that is considered the best at something.

Based on the definition, excellence shows

superiority, so excellence cannot be a quality that

exists in all things, because there are things that

differentiate one thing from another.

TikTok is a social media-based application that

is used to edit and upload videos of short duration.

However, as technology develops, TikTok presents

various interesting features. One of its superior

features is a shopping feature called TikTok Shop.

This feature was created as an effort made by

TikTok to attract interest and make it easier for its

users. Quoting the official page, TikTok Shop is a

social e-commerce feature that allows users and

creators to promote and sell products while carrying

out shopping activities.

Social media is a platform with facilities that

enable its users, in this case the public, to carry out

social activities. This social activity can be like

communication as social interaction by sending or

giving information, sharing photos and videos and

so on according to the facilities available. Basically,

social media is part of development due to

technological advances, in this case the internet. The

internet, which emerged several decades ago,

succeeded in making social media develop quickly,

even growing with all the new facilities or benefits

provided to its users. (Ardiana, 2023; Nurhikmah,

2023)

3 METHODS

This research uses qualitative research methods

using a systematic literature review approach. The

literature studied does not only come from research

articles, but also from several sources obtained

online. Sources of processed data come from

YouTube, online news, research articles and other

social media. The data source must come from a

credible source, whether YouTube channels, online

news, and other sources. Data is searched using

keywords that match the research question. The

consideration for using this data is due to the

availability of adequate data on the internet and it

can be accessed easily (Hafidhah & Yandari, 2021).

The selected data sample is data published during

the last three years, specifically 2021 to 2023. The

data processing uses NVivo 12 Plus software. This

software was chosen because it can produce coding

visualization images and the way to use the software

is very user friendly (Tambun & Sitorus, 2023).

There are four stages carried out in the data

processing process with NVivo, i.e. the data input

stage, coding stage, visualization stage and

conclusion stage (Sitorus & Tambun, 2023). The

first stage, data input uses two methods, specifically

internal data input and external data. Internal data is

data input to NVivo without using an internet

connection. This data is usually data that is already

available on the laptop, such as research articles.

Meanwhile, external data is data that is input into

NVivo using an internet connection, the data input

process uses the NCapture for NVivo facility.

Examples of external data originating from the

internet such as YouTube and online news. The

second stage, coding data according to the answers

to the research question. Coding is simple words or

sentences that are answers to research questions. At

this stage, content analysis is carried out, especially

the stage of understanding the words or sentences in

the research data (Tambun, 2021). Specifically for

the coding process for YouTube data sources or

social media sources in video form, coding is carried

Advantages of TikTok Shop Compared to Other Social Media

289

out after there is a transcript of the YouTube content

or video. Analysis was carried out by making

transcripts, then a coding process was carried out

(Salahudin et al., 2020). The third stage, create a

coding visualization image. Visualization coding is a

collection of coding that forms an image. Coding

images are interconnected with various data sources.

This coding image is analyzed in the process of

drawing research conclusions. The fourth stage,

determining research conclusions. Research

conclusions are answers to research questions. The

answer can be seen from the existing coding. Coding

is considered to have strong validity if the coding is

confirmed from various data sources. Coding

validity is strong if it is confirmed at least three

times from various data sources. This principle is a

measurement of coding validity using the

triangulation method (Natow, 2020). Next, the

coding is sorted based on the most confirmations to

the coding with the fewest confirmations. These

coding are used as answers to research questions, as

well as research conclusions.

4 RESULTS AND DISCUSSION

This research produced several references consisting

of 2 YouTube, 9 Online News, and 2 research

articles. The coding process was carried out using

Nvivo 12 Plus software. There are 6 valid codings

that have been confirmed at least three times in the

data sources studied. Below is a visualization image

of the resulting coding.

Figure 1: Visualization image of coding results.

All coding in Figure 1 is an answer to the

research question. Coding comes from content

analysis of the various data studied. The coding

process uses the facilities available in the NVivo 12

Plus software. The following is a summary table and

intensity of each coding created.

Table 1: Coding Recapitulation.

No Coding Intensity Reference

1 TikTok Shop

rovides lots of

promos,

discounts, and

free shipping

• Harianhaluan.com

(2023) - Online News

• Kompasiana (2022) -

Online News

• Times Indonesia (2023)

- Online News

• Transekonomika (2022)

- Article

• Trial Public (2023) –

Artikel

2 TikTok Shop has

many active

users

• Times Indonesia (2023)

- Online News

• Beritamandalika.com

(2022) - Online News

• Radar Banyumas (2023)

- Online News

• Tempo.co (2023) -

Online News

• Franky Kamajaya

(2022) - YouTube

3 Ease and security

of TikTok Shop

transactions

• KBR (2023) - Online

News

• Radar Banyumas (2023)

- Online News

• Times Indonesia (2023)

- Online News

• Transekonomika (2022)

- Article

4 Features that are

easy to

understand

• Transekonomika (2022)

- Article

• KOMPAS.com (2023) -

Online News

• Locad (2023) - Online

News

• Beritamandalika.com

(2022) - Online News

5 Easy and user

customized

TikTok Shop

algorithm

• Locad (2023) - Online

News

• Beritamandalika .com

(2022) - Online News

• Franky Kamajaya

(2022) - YouTube

6 A unique way of

romotion using

content and live

• Tempo.co (2023) -

Online News

• KBR (2023) - Online

News

• Times Indonesia (2023)

- Online News

• Locad (2023) - Online

News

• Trial Public (2023) -

Artikel

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4.1 TikTok Shop Provides Lots of

Promos, Discounts, and Free

Shipping

The TikTok Shop application provides many price

discounts, attractive promos and applies a free

postage (delivery) program (Shobirin, 2023). This

promotion is a form of TikTok Shop's efforts to

attract the hearts of its users so they can be more

active in shopping (Nurul, 2022). The impact

resulting from this promotion resulted in user

intensity in using the application and making

purchases increasing rapidly (Hidayat Fahrul, 2023).

Even though there are lots of price cuts and free

shipping, TikTok Shop ensures guaranteed good

product quality and speed of delivery which makes

its customers increasingly reluctant to leave the

application (Sa'adah et al., 2022). And usually there

is a Big Sale promo which is often marked with twin

numbers every month (Sabrina, 2021).

4.2 TikTok Shop Has Many Active

Users

TikTok Shop has many application users who are

quite active in making transactions and using the

TikTok Shop application (Sabrina, 2021). TikTok

Shop strives to maintain the satisfaction and loyalty

of its users (Fahrozi, 2022). Even though the users

are dominated by young people, there are also users

from various age groups (Kamajaya, 2022), such as

children, teenagers, adults, and even the elderly who

use this application (Ardiana, 2023). Apart from

that, TikTok Shop is mostly filled by housewives

who like to sell while doing live streaming, or big

brands who are aggressively live and promote to

market their products, so that potential consumers

can get acquainted with the product and can ask

questions regarding the product (Rahmanda, 2023).

4.3 Ease and Security of TikTok Shop

Transactions

Apart from promotions, discounts and free shipping

promos which make customers happy to make

transactions, there are other factors which make

users even happier using the Tiktok Shop

application, because the process from registration

and account creation to the purchase stage has been

designed to be practical (Kbr Ragam, 2023). It’s

easy for anyone to do, so it doesn’t take much effort

to carry out the buying and selling process (Ardiana,

2023). Not only does it think about convenience, but

Tiktok Shop also guarantees security in transactions

as well, making customers feel safe when shopping

(Ai Nur Sa’adah, 2022). This security guarantee is

able to increase the level of user trust so that they

can keep shopping from Tiktok Shop (Shobirin,

2023).

4.4 Features That are Easy to

Understand

The placement of features that are easy to use and

according to their function means that new users can

master using the application in a short time and give

a comfortable and concise impression to the user

(Riyanto, 2023). Apart from that, the ease of

accessing and using the application is a plus point

for application users and provides a sensation of

satisfaction for users (Ai Nur Sa’adah, 2022).

Therefore, its features make it easy for users to

master using this application in a fairly short time

(Nurhikmah, 2023). And with this convenience,

users can help spread this advantage by introducing

this application through word of mouth (Fahrozi,

2022).

4.5 Easy and User-Customized TikTok

Shop Algorithm

TikTok Shop provides a selection of content and

product recommendations that appear randomly to

be displayed to users with the aim of studying user

consumption trends and interests which can change

very quickly according to time (Nurul, 2022). For

example, if a user likes funny videos, the TikTok

Shop will provide a lot of content containing funny

videos that can entertain users, or give rise to several

TikTok trends, such as dancing to hit songs, and

others (Kamajaya, 2022). Apart from that, there is a

For Your Page (FYP) feature which can provide

video suggestions that are likely to be liked or

contain random information for the user (Fahrozi,

2022). This will give the impression that TikTok

Shop really pays attention and cares about its users'

interests in content who like certain content.

4.6 A Unique Way of Promotion Using

Content and Live

TikTok Shop is not only a buying and selling

platform by clicking on products, but also has its

own strategy, such as doing live streaming, where

sellers carry out the buying and selling process

during live streaming (Kbr Ragam, 2023), or create

content containing promotions and explaining

everything related to their products (Rahmanda,

Advantages of TikTok Shop Compared to Other Social Media

291

2023). Live streaming while selling is very popular

with buyers (Shobirin, 2023), where they will fight

over a product and after getting it, they will

immediately check out the item and can relax

afterward, without having to get tired from buying in

an offline shop (Diah Ananda Kharisma, 2023).

Apart from that, the unique way and characteristics

that differentiate each content and live actor will

make it easy for buyers to remember the identity of

the product and shop (Nurhikmah, 2023).

5 CONCLUSION

The results of this research have obtained answers to

the research questions posed at the beginning. There

are six factors that explain the advantages of TikTok

Shop. These six factors are that TikTok Shop

provides lots of promos, discounts and free shipping,

TikTok Shop has many active users, Ease of

transactions and use of TikTok Shop, Features that

are easy to understand, TikTok Shop algorithm that

is easy and tailored to users, Unique promotional

methods with using content and live. The results of

this research can be reviewed to provide future

developments for TikTok Shop. Through this

research, the author recommends six factors as to

give suggestion to develop TikTok Shop application.

The aim of this research is to provide knowledge

about TikTok Shop and the factors behind TikTok

Shop's success. In conclusion, TikTok Shop offers

significant advantages compared to other social

media platforms, particularly in terms of its focus on

social media marketing, user-friendly interface, and

affordable pricing. However, further research is

recommended to explore the long-term effectiveness

of TikTok Shop for different types of businesses, or

about the impact of TikTok Shop on brand

awareness and customer engagement, and the

optimal strategies for leveraging TikTok Shop for e-

commerce success. In addition, future studies could

investigate the potential challenges and limitations

of using TikTok Shop, as well as the differences in

consumer behavior and preferences on TikTok Shop

compared to other social media platforms.

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