Background

Technological advances have a very significant impact on human life. One of them is
also experiencing changes in people's shopping patterns which can now be done quickly just
via smartphone. Recently, people have been introduced to a new model of online shopping
platform, namely social commerce, namely social media that adopts the e-commerce work
system. According to Kim & Park (2013), social commerce is an e-commerce performance
that utilizes social interactions and contributions from social media users in online shopping.
Kotler & Armstrong (2012), explain how e-commerce is a dynamic collection of application
technologies and business processes that connect companies, customers and the general
public through the electronic exchange of goods, services and information. E-commerce
sometimes called electronic commerce or internet commerce is a term used to describe the
exchange of funds and data for the purchase and sale of goods and services over the internet.
Online shopping has become people's choice because online shopping has various benefits,
such as saving time, energy and money (Latif & Ishak, 2022). Several important factors in
online shopping are online services and product quality which can be an incentive to build
relationships with consumers ( Moon et al , 2021).

Quoted from Kumparan TECH (2022), based on a Populex survey in July-August

2022, 86% of respondents admitted to having made shopping transactions via social
commerce. Tik Tok Shop leads as the most used social commerce with 45%, followed by
WhatsApp 21%, Facebook Shop 10%, and Instagram Shop 10%. Tik Tok shop is a feature
found in the Tik Tok application ( Tusanputri & Amron, 2021). Tik Tok shop offers a
shopping experience starting from product selection through the display case to the
finalization stage in just one application ( Dwinari & Rahmanto, 2023). One of the most
unique styles of Tik Tok is that it consists of short videos to connect with online audiences
which is a new way to promote brands and products of a particular company. According to
statistics, more than 37% of users found that there is something deeper than the Tik Tok
application reported by the Digital marketing Institute 2023.

Like TikTok Shop, Shopee has now developed live streaming features, Shopee videos
and a Shopee affiliate program. The existence of a marketplace and all its benefits has an
important function for consumers in online buying and selling. Shopee is considered to fulfill
aspects of effectiveness and efficiency because it provides buying and selling transactions
only via smartphone (Amelia & Sudrartono , 2023). Various e-commerce platforms compete
with each other to attract consumer interest through marketing communication strategies,
including Tik Tok shop Indonesia and Shopee. The most widely used marketplace in
Indonesia certainly has its own strategy to ensure transactions occur. Due to easy accessibility
and reliable services, people are more engaged to pursue more things on this online shopping
platform, millions of people across the world sit in the comfort of their homes and order
online without any hassle on shopee ( Galabyo et al , 2024). According to Locad , in 2022
around 2 billion orders will be processed on Shopee, but consumers not only prioritize
application accessibility , but also prefer the Shopee guarantee feature. This type of service
guarantees payment to the seller only after the customer receives the ordered product.
 Indonesia's current situation is incomparable. A new middle class is emerging , and
the rise of digital technology has created opportunities for business start-ups. According to
Novanda & Wibowo (2023), SMEs (Small and Medium Enterprises) currently number more
than 62 million or one SME for every five Indonesian residents, 98.75% of which 61.5
million are micro-enterprises. In recent years, digital transformation has become a major
emphasis. New problems and opportunities have emerged for MSMEs as a result of the
pandemic which has shifted consumer purchasing behavior from offline to online Kurniawati
& Pirzada , 2022). Micro, Small and Medium Enterprises (MSMEs) face it. challenges of
transformation in this era of disruption ( Kurniawat et al. , 2022). In Indonesia, the MSME
sector dominates the economy and contributes 99.99% of GDP (Ministry of Cooperatives and
UMKM, 2019). The development of MSMEs has an important role in achieving national
economic growth (Ministry of Finance, 2020), considering its status as the country's main
economic solution (Lutfi et al. , 2022). MSMEs can stabilize and strengthen the Indonesian
economy (Lestari, 2022). MSMEs use personal funds to manage their business to avoid
changes in foreign currency exchange rates (Kurniawati, 2019). For example, using
technology to handle work related to digital transformation can provide significant added
value for organizations. (Farhani and Chaniago, 2021). Even though they have a very high
contribution, the MSME group finds many obstacles. The main challenge is the low quality
of human resources, existing facilities and infrastructure (Kurniawati et al. , 2020), so
business innovation is also very low (Wulandari and Koe, 2021). The growth of small
companies into large companies will be a key factor in the nation's prosperity in the future.
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