Malaysia’s eCommerce industry is steadily expanding, fueled by COVID-19-related online services and the country’s growing smartphone penetration. Malaysia’s dynamic economy and developed infrastructure for digital technologies have made it a desirable market for eCommerce in Southeast Asia.
Malaysia’s eCommerce revenue is expected to reach $4 billion by 2020. Malaysia’s eCommerce market grew by 37 percent in 2020, contributing to the global growth rate of 26 percent. Malaysia’s eCommerce market is expected to grow by 24.7 percent in 2021, according to Global Data’s eCommerce Analytics. Between 2020 and 2024, the market is expected to grow at a CAGR of 14.3%, reaching $12.6 billion. Malaysia’s internet users (27.4 million) make up 80 percent of the population, and mobile phone usage is high (84.2 percent). As of January 2021, Malaysia had 28 million social media users and 39.99 million mobile connections.
The National eCommerce Council was formed to oversee the implementation of the National eCommerce Strategic Roadmap 2.0, which is made up of representatives from various ministries and agencies (NeSR2.0). The NESR 2.0, which aims to support the growth of Malaysia’s eCommerce market, was recently endorsed by the National Council of Digital Economy and 4IR. NESR 2.0 will be guided by three overarching goals: accelerating eCommerce adoption and growth, improving ecosystem development, and strengthening policy and regulatory environments.
Major resources increase in the growth of E-commerce business in Malaysia are:
Collaboration with international brands:
Malaysian online shopping includes a significant amount of cross-border e-commerce. It accounts for 44% of total e-commerce sales, with more than half of Malaysian online shoppers (52%) making cross-border purchases.
Due to its sophisticated e-commerce experience, advanced social commerce options, and wide range of products, China is the most popular overseas shopping destination, followed by Singapore and Japan.
Most demanding e-commerce business are:
The top five categories of online sales in Malaysia were traveled ($2.65 billion), fashion and beauty ($1.42 billion), electronics ($1.17 billion), toys and homes ($8.36 million), and furniture and appliances ($5.86 million).
According to a recent study by Deloitte, as a result of the pandemic’s restrictions, cross-border trade of 3C electronic products has increased even more in Malaysia.
Malaysian hottest e-commerce business in 2022 includes:
One of the major e-commerce trends in Malaysia that you simply cannot ignore is mobile e-commerce. The percentage of total retail sales accounted for by mobile commerce is increasing year after year.
From a survey, the annual growth rate for mobile shopping is approximately 31 percent, with a value of 7.35 billion dollars. This is due to a 63.9 percent smartphone penetration rate.
Furthermore, approximately 58 percent of Malaysian internet users engage in mobile commerce.
Content Marketing Business:
Content marketing is still one of the most effective marketing strategies for retailers in 2022, which comes as no surprise.
One of the most straightforward touchpoints for generating profitable customer action is the need to educate your audience and share valuable insights into their problems.
Well-known e-commerce platforms like Easy Store and Shopify, for example, provide a wealth of educational content and support centers to help their customers learn more.
Enhancing Digital payment Method:
Bank transfers are the most popular e-commerce payment method in Malaysia, accounting for 46% of all transactions. Digital wallets (or dompt digital), the fourth most popular payment option, have risen in popularity as smartphone adoption has increased. In addition, the Malaysian central bank-issued ten new electronic money (e-money) licenses to non-banks, bringing the total number of issuers to 47.
Allowing customers to select a preferred digital payment method and save their information will result in faster checkouts and, as a result, more repeat business.
Social Media Marketing Business:
Not only in Malaysia but all over the world Social commerce is gaining traction in the same way that m-commerce is gaining traction. Social media commerce has exploded as more people own smartphones, particularly on platforms like WhatsApp, Instagram, and Facebook. As a result, many businesses use chat messaging platforms to not only complete transactions but also to market their business and increase sales.
For example, many businesses use WhatsApp to promote their products and services by sending out broadcast messages, notifications, and even abandoned cart recovery reminders.
Build relation with the international Market:
In Malaysia, cross-border spending accounts for 44% of all e-commerce sales, with 48% of Malaysian shoppers having made purchases from other countries. China, the United States, and Singapore accounted for roughly 60% of all international parcels in Malaysia. China is also the most popular overseas shopping destination for Malaysians due to a better e-commerce shopping experience, social commerce options, and a wider range of products. Alibaba, Lazada, and Shopee are just a few of the retail behemoths leveraging Malaysia’s advantages.