TikTok Live Streaming Impact on E-commerce Gross Merchandise Value in Indonesia

Abstract

Indonesia's digital economy transformation has positioned live streaming as a critical mechanism driving social commerce growth, yet limited research examines how specific technological features directly impact business performance metrics beyond consumer engagement indicators. Current literature focuses predominantly on purchase intention and satisfaction measures in social commerce contexts. Significant research gaps persist regarding direct relationships between live streaming functionality and gross merchandise value (GMV) performance, particularly lacking empirical validation of technology-performance correlations in Southeast Asian emerging markets. This mixed-method case study investigates how TikTok's live streaming functionality contributes to GMV growth in Indonesia's social commerce ecosystem. Research employed secondary data analysis of TikTok Shop performance (2021-2024), in-depth interviews with 15 successful sellers across diverse product categories, surveys with 200 active buyers, and expert stakeholder interviews. Quantitative analysis included time-series evaluation, competitive benchmarking, and correlation analysis. The results show a strong positive relationship (r = 0.847, p < 0.001) between how often people use live streaming and how well their GMV does each month. In 2024, TikTok Shop had a GMV of IDR 528.6 trillion (US$22.6 billion), making it Indonesia's second-largest e-commerce site, even though it only opened in April 2021. Improved real-time product visualization, the ability to interact with customers right away, and algorithmic amplification that makes it easier for small businesses to get into the market are all important ways to succeed. The fashion and beauty categories have the highest conversion rates (23.2% and 21.8%, respectively), and WhatsApp integration is essential for completing transactions in Indonesia. This study adds new theoretical frameworks that connect live streaming technology to business performance through the extension of social presence theory. It also introduces "algorithmic commerce," which represents a shift from search-based to recommendation-driven consumer discovery processes. This provides empirical evidence for platform developers and strategic guidance for improving social commerce.