What’s Happening in Malaysia e-Commerce Business in 2020
Now 2020 is halfway done and we’re slowly recovering from the COVID-19 pandemic that had hit us since the beginning of the year. But still the vaccine hasn't been found and what would be our fate? Business industries have also been extremely affected by this outbreak. Many brick and mortar businesses as well as online businesses especially small and medium enterprises (SMEs) hardly survive during the early wave. Now, what can we do to maintain our gains? Here, we share with you the importance of the eCommerce business and why you should start doing business on an eCommerce platform.
E-Commerce: What’s Happening in Malaysia This Year?
Talk about the buzz in the industry of online shopping now in Malaysia with a revenue of US$1,077,761 million within Southeast Asia in 2020. The latest report on Statista shows that e-Commerce in Malaysia can be predicted to rank about US$3.91 billion dollars singly in 2020.
Next, we’re going to move deeper into the predictions of e-Commerce Business in Malaysia for 2020.
The Economy is Growing!
Malaysia has the most large-scale internet penetration in Southeast Asia showing 85.7% of statistics. The fact that mobile penetration in this country accounted at 140% which makes Malaysia the fastest developing e-Commerce market all over Southeast Asia. Besides, the e-Commerce economy of Malaysia is foreseen to rise by 20.8% in 2020 as per their department of statistics.
About 3.25 million of the digital population set up in Malaysia and with that, the country attracts many types of local and global e-Commerce market companies such as Hong Kong and China. This is definitely the time for all SMEs and e-Commerce masters to make their move. Many IT Company in Malaysia are also developing eCommerce websites and apps for companies who are interested to merge in.
Online Mall-Home to Marketplace!
Like those cool kids in the basketball team in high school, Malaysia has always been seen as one of the mature markets of ASEAN countries- resulted from being the top e-Commerce performer in Southeast Asia. Bringing customers to wide choices of good products, quick and comfortable services, Malaysia’s e-Commerce is growing at high speed.
Many e-commerce giants such as Shopee, Lazada, PrestoMall, Tokopedia, Qoo10, eBay, Amazon, and others were then pierced into the market and became Malaysia e-Commerce Platforms. They hold the title of Malaysia e-Commerce websites. It is now or never excellent entrepreneurs, sell your product on any of these constantly growing online hypermarkets. The more the better!
Social Media Adds The Flavor
The next irresistible tool to drive tons of money-paying customers to your product is through the use of social media. Social Media Marketing or SMM marketing are cheap, almost free, more efficient in spreading even the littlest information regarding your brand-which really helps people to get to know you. And brand awareness is always the goal of marketing.
Statistics state in the recent record that social media users in Malaysia grew from 22.7 million in 2017 to 26.1 million social network users in the year 2023, which brings in a big opportunity for e-Commerce retailers in Malaysia. Little tips when using social media is to always offer valuable content to them.
Why choose e-Commerce to sell?
The Marketplace as Free Vendor
A revenue of 3,904 million in 2019 will be derived from e-Commerce penetration in Malaysia. Since the year 2000, the e-Commerce, foundation of the online marketplace has started to bring up a constant pace.
Major tech-giants like Lelong, eBay, Lazada, and other platforms were rooted in Malaysia left from that year’s discovery. This happened to commence automation for the e-Commerce industry in Malaysia.
A lot more straightforward and seamless marketplaces have been created giving all retailers more choices to make. Marketplaces like e-Commerce sites will attach your product with a massive amount of traffic.
Put your brand here and start selling! No worry much as these titan size marketplace will always be flooded by customers who are willing to pay. Automate your e-commerce stores to experience almost no flaws selling solutions of Lazada, Shopee, and their siblings.
You Can Pick Your Category.
Now you’re thinking of starting selling in Malaysia? The good news is not over yet! You can see below in the chart of e-Commerce statistics from Statista and it might pump you up more to indulge in the e-Commerce venture in Malaysia.
The largest field projected for the e-Commerce market of Malaysia in 2023 is in the segment Electronics and Media. We can see from this chart that this business on e-Commerce is steadily growing which gives you the exact reason why to start now.
New Choice for Small and Medium Ones
E-Commerce sites were expected by consumers in Malaysia to have strong inventories of products with quality. It gets difficult for sellers to compete with such limited stock contention as the number of demands by consumers increases. But these established marketplaces like Lazada, PrestoMall, Shopee, eBay, and much more help SMEs to onboard the game of selling and buying.
The past year has recorded significant growth for the e-Commerce and the Malaysia sector has grown considerably and contributed to RM74.6 billion in 2016.
Hence, there is no better time to invest in Malaysia e-Commerce, NOW is the time. Your venture in e-Commerce might not rest until it sets up a store.
Target right is the key. Always know who the targets are. The primary online shoppers belong to the young category thanks to the increasing e-Commerce penetration in Malaysia, mostly below the age of 35. Therefore, if you target your ads to young audiences, that’ll benefit your brand more.
The chart above reported by Statista researchers tells us that shoppers start from low, medium and high-income are not so different and proportionally close to each other apropos to the online shopping landscape in Malaysia is taken into account.
Because of the convenience, variety of products, free shipping, the commission of nothing, and other incentives, people are more drawn to online shopping.
Here are trends of shoppers on Malaysia e-Commerce websites:
Because it’s a trend, people look beyond price
Mostly shop on their smartphones around 80% of them
Women in Malaysia shop less compared to men
Digital shoppers around 59% shop at least once a month
Mobile Takes Over e-Commerce in Malaysia
Fun fact about Malaysia e-Commerce is that this country was the Mobile-first and mobile-only region back in the years. The digital e-Commerce of Malaysia was expected to amount to $7902 million in 2019 as the result of an unstoppable rise in mobile commerce.
Half and more of Malaysia’s e-Commerce economy truly depends on mobile usage. In Malaysia, the average e-Commerce transaction value per user is up to $389.9 in 2019. A marketer needs to know and understand the unique booming market ways in order to compete in Malaysia. The vast majority of users likely to buy via Tablets and iOS users surpass Android users.
Payment Secured Plus Free Shipping is the Key
The frequency of credit and debit cards are increasing massively in Malaysia even when cash is still the King. Seamless e-Commerce payment gateways in Malaysia increases the probability of coming back as people love when it's easy and convenient. Options like credit cards and PayPal, along with much quicker online checkout options via mobile e-wallets are favored by millennials in Malaysia.
Free and quick shipping has always made your customers fascinated which is the result of choosing you to serve them. There are some ways you can try to give your customers free shipping so that it'll not rip you from your budget eventually. The rule is that as long as your shipping cost does not exceed 20%of your average cost, then you are okay to provide FREE shipping to your customers.
Important Dates and Preparations for Shopping Sales in Malaysia
e-Commerce in Malaysia is said to gather most of its revenue during the mega e-Commerce days such as super shopping day, Singles Day, and double 12. Hence save the date and start planning for it! You got to see a large number of people come in and out of the stores to just spend money.
Here are some tips you can do to prepare for these dates:
Blend in your store with Malaysia's highest-selling marketplaces.
Your best product is in the front line, get ready with the promotions
Know your target audience, target only the right ones suits your niche best
Do planning beforehand on all your discounts and offers
Do you sell on important dates? Don’t miss the train, awesome people!
Mid-year sale is now over, sellers also have begun to prepare for the upcoming holiday season, which definitely drives people to more shopping. Singles’ Day (11.11) and Doubles’ Day (12.12) are the money drawing day most awaited by retailers in Malaysia. So, buckle up everyone because we need to blast off our rocket on brand marketing with these movements on the e-Commerce platforms!