Ecommerce in Malaysia : Growth, Trends & Opportunities

Get tips and insights around trends, consumer behaviour and growth opportunities for ecommerce in Malaysia.
 
KUALA LUMPUR, Malaysia - June 5, 2020 - PRLog -- Malaysia's tryst with Ecommerce started in 2004 with the launch of eBay Malaysia. This was followed by Lelong.com.my in 2007 – a C2C platform –  that attracts more than 9.56 million visitors per month. The current state of Malaysian ecommerce market started taking shape In 2012 when two major players Lazada and Zalora launched their Malaysian operations, followed by Shopee in 2015.

Fast forward to 2020, Malaysia's eCommerce market is worth US$ 4.3 billion, and is expected to double to $8.1 billion by the year 2024;  at 14% CAGR.

Comparisons with Singapore: A Case of Similar Yet Different

Singapore and Malaysia represent the largest ecommerce markets in SEA. Between them, they account for more than 50% of total online retail sales in the region despite being home to just 8% of the Southeast Asian population.

While the ecommerce markets in Singapore and Malaysia are nascent compared to mature markets like China and Japan; they stand out with respect to the relative size of the cross-border share of the ecommerce market

However, there are differences between the countries when it comes to tax regulations for ecommerce platforms (https://www.capillarytech.com/products/ecommerce-software/) – Singapore is renowned for its favorable rules and regulations and extremely low rates of corruption. Items valued below US$ 320 are shipped duty-free.

Factors Spurring Ecommerce Growth in Malaysia

Ecommerce growth in Malaysia is primarily driven by a growing number of digitally-savvy, middle-class who are looking for great deals and access to international brands. Here are the other major factors driving ecommerce growth in the region.

*Geological & Topographical Advantages
*Surge in Grocery Ecommerce
*Digitally-savvy, mobile-first consumers
*Social Media Growth
*Consumer Comfort with Digital Payments
*Government Initiatives

Ecommerce Trends & Consumer Behaviour in Malaysia

The Malaysian ecommerce space shares a lot of similarities with other emerging markets in SEA like Singapore, Indonesia & Thailand. However, there are some interesting cultural and region-specific nuances to watch out for.

*Strong Cross-border Spending
*Mobile-First Audience
*Key Motivators: Fast Shipping & Price
*Digital Payments are Most Preferred
*Social Commerce is on the Rise
*A Battle of Regional & International Players
*Important Shopping Events

Strategy to Leverage the Ecommerce Opportunity

Given its population size and increasingly affluent middle class, Malaysia is easily one of the most attractive markets for ecommerce in Southeast Asia. Here are some strategies that retailers and brands can use to leverage this opportunity.

*Offer a diverse product range
*Keep a track of popular offline items
*Provide a wide range of payment options
*Offer superior fulfilment experience
*Tap into social commerce
*Understand local nuances

Get full report at: https://www.capillarytech.com/blog/capillary/ecommerce/ecommerce-in-malaysia-growth/
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Location:Kuala Lumpur - Kuala Lumpur - Malaysia
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