E-commerce players in Indonesia continue to innovate to increase value and appeal, such as affiliate programs that are predicted to play an important role in the competitive landscape of e-commerce in Indonesia. This program is a commission-based marketing program that indirectly connect potential buyers with products through special referral links.
Astrid Wiliandry, Director of Snapcart Indonesia in Jakarta (13/7) said, “The presence of an affiliate program can be said to be a powerful strategy for e-commerce players, because it indirectly helps traffic to visit the e-commerce platform itself. As a result, it not only helps the sales of people’s business increasing and reach a wider market, but also creates new trends and professions that monetize digitally. Affiliate programs are now used as a medium to generate additional income with minimal risk, plus the factor of time flexibility and being able to work anywhere. Although in the past, affiliate marketing was only an exclusive opportunity for celebrities and large-scale influencers. The more people interested in the affiliate trend, the more this trend has a promising future.”
In response to this phenomenon, this time Snapcart conducted a research that related to “Potential of Affiliate Programs in the Map of E-commerce Competition”. Using online method, this research involved 500 respondents who have participated and experienced commissions from affiliate programs in e-commerce with the age range of 19-35 years and over, from various areas in Indonesia.
According to the survey results, the current condition of the affiliate program competition can be known from the respondents’ answers that the Shopee Affiliate Program leads the market. As much as 59% of orders that come from the Shopee Affiliate Program link, so that it can be said to be an affiliate program with the highest share of orders market share compared to its competitors. This data far exceeds other competitors with the Tiktok Affiliate Program (27%), followed by the Tokopedia Affiliate Program (11%), and the Lazada Affiliate Program (2%).
The main drivers that directly affect the market share of the total transaction value are found in the three main indicators like the Top of Mind (TOM) or the most memorable affiliate program, the Brand Used Most Often (BUMO) or the most used affiliate program, and Affiliate Program with the Most Profitable Commissions.
Apart from those three main indicators, in which the commission plays the most important role, other supporting factors also become the basis for consideration and attraction for the followers of these affiliates as represented on this table below.
|
Affiliate program that offers the cheapest product prices |
Affiliate program with the most free shipping promotions |
Affiliate program with the biggest discount/cashback |
Shopee |
66% |
66% |
66% |
TikTok |
19% |
19% |
18% |
Tokopedia |
13% |
13% |
13% |
Lazada |
2% |
2% |
2% |
In line with the data, the product categories that are most promoted by affiliates are Fashion & Fashion Accessories (46%), followed by Beauty & Personal Care (38%), Lifestyle (34%), everyday products or FMCG (32%) , home appliances (30%), electronics (25%), and mother and child/baby needs (17%).
Fashion and beauty are included in the industry whose growth is in line with the demands of changing times and lifestyles. Thus, the rapid demand for fashion and beauty products which continues to soar is an opportunity for affiliates to earn additional income through the creation of the product content that they present.
Based on the results of this survey, below are the affiliate program indicators for fashion and beauty products from each e-commerce player.
Fashion |
Shopee |
Tiktok |
Tokopedia |
Lazada |
The most complete fashion product |
67% |
17% |
13% |
2% |
Offers the cheapest fashion product prices |
68% |
17% |
12% |
2% |
Offers the biggest promotion for fashion products |
67% |
17% |
12% |
2% |
Beauty |
Shopee |
Tiktok |
Tokopedia |
Lazada |
The most complete beauty product |
67% |
17% |
12% |
2% |
Offers the cheapest beauty product prices |
68% |
17% |
12% |
2% |
Offers the biggest promotion for beauty products |
67% |
17% |
13% |
2% |
The fierce competition in affiliate programs that are offered by e-commerce players has created new trends and opportunities not only for content creators/affiliators, but also has a positive impact on business actors through increased sales traffic.
The high public interest toward various innovations such as affiliate programs that are presented by e-commerce players is likely to become an increasingly interesting competition to pay attention to.
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