How to win eCommerce in Malaysia




E-Commerce in Malaysia is the next talked about buzz in the industry today. With Southeast Asia’s revenue amounting to US$1,077,761 million in 2020- The eCommerce in Malaysia can be foreseen raking about 3.91 billion U.S. dollars alone in the year 2020 (as per the latest report of Statista).


eCommerce overview in Malaysia

How to win eCommerce in Malaysia


Besides, as per their statistics department, the eCommerce economy of Malaysia is expected to rise by 20.8% in 2020. Having the largest internet penetrations in Southeast Asia- 85.7% and that its mobile penetration accounting to about 140%- Malaysia holds the crown of fastest emerging eCommerce markets across Southeast Asia region.

With 22.33 million digital population, Malaysia attracts a wide variety of companies both from the local and global eCommerce market. Hence, bringing in a huge opportunity for the SMEs and eCommerce veterans in Malaysia.  



Forrester (a research firm) evaluates the online retail in Southeast Asia to rise at a compound annual growth rate (CAGR) of 23% to reach $53 billion in 2023.


Being the top eCommerce player in SouthEast Asia, Malaysia is often seen as one of the mature market of ASEAN countries. Driving patrons with alluring products and quick comfortable services, the eCommerce in Malaysia is growing at a high pace. It was then when the eCommerce giants- Shopee, Lazada, 11Street, Tokopedia, Qoo10, eBay, Amazon, and other such renowned marketplaces tapped into the eCommerce market of Malaysia. Thus, holding the title of Malaysia top eCommerce websites.

Why should you get started with eCommerce in Malaysia?


How to win eCommerce in Malaysia


Thinking to start selling in Malaysia? Well, the following Malaysia eCommerce statistics from Statista might give you a little push to shape your eCommerce venture in Malaysia…


The eCommerce penetration in Malaysia will derive a revenue of US$3,904m in 2019.   


Accounting a market volume of US$1,014m in 2019, the eCommerce market of Malaysia encounters its largest segment in Electronics & Media.


The present online user penetration in Malaysia is 62.1% is forecasted to reach 63.5% by 2023.


The ARPU (Average Revenue Per User) amounts to US$192.60 in Malaysia.


The digital commerce transactional value in 2019 is expected to amount to US$7,902 million in 2019. Hence, expanding the  Malaysia eCommerce market size.

With the increasing eCommerce penetration in Malaysia- the major online shoppers belong to the young category i.e. mostly below the age of 35. Hence, targeting your ads to young audiences (below 35 years of age) shall benefit you.


Around 95% of native Malaysian residents cited price and promotions as their main reason for online shopping.


Convenience, product variations, free shipping, zero commissions, and other such incentives tend to draw people towards online shopping.


Having recorded significant growth in the past years. The eCommerce sector of Malaysia has recorded considerable growth and contributed RM74.6 billion in 2016.


That being said, there is no best time to enter the Malaysia eCommerce than NOW. Perhaps, your eCommerce venture does not rest till setting up an eCommerce store. You must assure that your brand name, products, and their outreach are huge, and acknowledged by the apt segment of the audience.


Trends of Malaysia eCommerce market:


  • With the online shopping in trend, patrons look beyond price.
  • More than 80% shoppers shop on their smartphones
  • Well, men in Malaysia shop more as compared to women.  
  • Over 59% of digital shoppers shop at least once a month
  • Girls and single women comprise 48% of fashionistas in Malaysia


Well, you need not to worry for we will let you know exactly how it is done. Hold onto your hats, as we delve deeper into the why, what, and how to win the eCommerce title throughout Malaysia. So let’s get started:


Mobile rules eCommerce in Malaysia


How to win eCommerce in Malaysia


Did you know? Malaysia is the Mobile-first and mobile-only region. With an unstoppable rise of mobile commerce, the digital commerce of Malaysia is expected to amount to US$7,902m in 2019.


More than half of Malaysia’s eCommerce economy truly depends on mobile usage, which is very much evident from the image by Asean up below.


The average eCommerce transaction value in Malaysia per user is segmented to amount to US$389.9 in 2019 (source: Statista).


In order to compete in Malaysia, one needs to have a clear and unique understanding of the booming market. The startling majority of consumers in Malaysia use low-cost smartphones when browsing the Internet. Perhaps, a wide majority of consumers tend to make the purchases via social media.


Key Takeaway


With the pacing digitisation- 55% of the patrons prefer the app experience, and 45% prefer the smartphone browser. Moreover, buyers today ponder on a speedy website. Make sure your website is fully compatible with mobile. Perhaps, providing a seamless mobile experience will lead to increased checkouts.



Marketplaces are the new trove of choices


Patrons in Malaysia today expect eCommerce sites to have robust inventories of quality products. As with the increasing consumer demand, it gets difficult for sellers to compete with such limited inventory to contend. However, the SMEs (Small and Medium Enterprises),  sell their inventories through established marketplaces like Lazada, 11Street, Shopee, eBay, Amazon, and others.

With the eCommerce at pace, the foundation of marketplaces in Malaysia took place somewhere around in the year 2,000. This discovery left some experienced players such as Lelong, eBay, Lazada, and some major eCommerce platforms in Malaysia. With major tech-giants, the eCommerce industry in Malaysia happened to commence its automation. As a result, the super sale days- 11.11 (Singles’ Day), 12.12 (Doubles’ Day) are the most awaited money-drawing days for retailers in Malaysia.


Key Takeaway:


Marketplaces today tend to create a lot of simpler and seamless choices for all the retailers out there. With tremendous shoppers every second, marketplaces leverage you with hoards of traffic to your products.


Sell on the top marketplaces of Malaysia and automate your eCommerce stores to experience the seamless selling with the astounding integration solutions of Lazada, Shopee, Lelong, 11Street and lot more.


E-commerce in Malaysia is driven by easy payment methods


While cash is the King, the frequency of credit/debit cards is increasing rapidly in Malaysia.


Offering easy and leveraging shoppers with seamless eCommerce payment gateways in Malaysia, increases their probability of coming back.


Hence, options like credit cards and PayPal along with quicker online checkout options via mobile wallets are more preferable by millennials in Malaysia.

Automate your multichannel selling in Southeast Asia


How about getting your shipping right?


People across Malaysia and beyond love to shop online without paying the delivery fee. Perhaps, fascinating your customers with FREE and quick shipping services makes you their first choice.


However, enabling free shipping on every purchase might not end in benefiting you…So what could be the best way out?


Well, as the rule of thumb goes states as long as your shipping cost must not exceed 20% of your average cost, you are good to provide FREE shipping to your customers.


Here’s how you calculate the average cost of your products,


Average Cost= Net price of your items/Total quantity of your products  


Wish to calculate your Shipping Price against average cost?  


Percentage of shipping cost= Shipping Cost/Average Price


That being said, once you get the results in your favor after carrying out the calculations, you are good to provide Free shipping.


Social Media is the new helping hand!


Social media platforms are the next captivating tool to drive millennials to your products. Being inexpensive they are much efficient in spreading even the slightest information concerning your products to the end audience.

How to win eCommerce in Malaysia

Besides, Statista records social media users in Malaysia to rise from 18.62 million in 2017 to 20.42 million social network users in the year 2022. Thus, bringing in a great opportunity for eCommerce retailers in Malaysia.


Do you sell on the important dates?


9.9, 11.11, 12.12


Rather known as the super shopping day, Singles’ day and Double 12 are the major sale driving days. E-commerce in Malaysia is said to rake most of its revenue during these mega eCommerce days.


You must get along with your preparations for Q4, with the following:


  • Integrate your stores with the highest selling marketplaces in Malaysia.
  • Get ready with the promotions of your best products.
  • Target the right audiences who fit best to your niche.
  • Plan-up all your discounts and offers beforehand.


To sum it up…

The eCommerce in Malaysia is said to reach $8.2 billion by the year 2025 as per the sources from Google and Temasek.

It is now the perfect time for the eCommerce players both veterans and newbies to dive deep and make the most of eCommerce in Malaysia.  


Are you ready to win the eCommerce in Malaysia?

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