Over the past decade, the increased Internet penetration and popularity of smartphones have changed the way people shop, and retailers are adapting to the new shopping trends to keep up and stay connected with consumers. According to recent statistics, at 81.4%, Malaysia has one of the highest internet penetration rates in south-East Asia.
If you run a business in Malaysia, consider online selling. Here are some reasons to consider online selling Malaysia.
Digital Savvy Customers
Besides high Internet penetration, Malaysia also has incredible 140% mobile penetration. As per leading reports, around 26 million people in Malaysia access the Internet. The report also mentions that 80% of Internet users aged between 16 to 64 are already shopping online.
Malaysia’s e-commerce market is increasing, and the projected compound annual growth rate for 2023 is expected to be around 19.7%. If eCommerce growth continues, the Malaysian e-commerce market will become an $8.9 billion market by 2023. If you are not online selling in Malaysia, you will lose many business opportunities.
A Rise in Online Grocery Shopping
FMCG and grocery eCommerce is growing at a rapid pace in Malaysia. As per the 2018 Statista report, Malaysia ranked 2nd in the fastest online grocery market. IGD Asia has predicted online sales value of grocery is expected to grow at a CAGR of 60% between 2017 and 2022. If you don’t start selling online, you will miss all business growth opportunities.
A Rise in Social Media
Social media platforms are not limited to making friends online. The line between eCommerce and social media is blurring, and you can see leading brands using social media channels to reach their target audience and sell their products and services. Malaysia has around 25 million active social media users, which account for 78% of the total country’s population.
Digital-savvy mobile users regularly use social media platforms to know about new products and read reviews of the products they want to buy. If you do not have an eCommerce store, you can not connect to your target audience that frequent social media platforms.
Seamless Delivery Logistics
Logistics is a big problem when selling online. Unlike other countries which face logistical challenges, logistics in Malaysia is straightforward and cost-effective. Malaysia is divided into two parts – East Malaysia and Peninsular Malaysia. Hence, it is easy for you to fulfill a large number of orders more quickly.
Lower Setup Costs
Setting up an online business requires much less capital than setting up an offline business. Many service providers offer ready-to-use platforms for selling your goods online. You also save on many business costs like rent, electricity, staff, and wages when you start selling online.
The money you save can be used to set up online stores and expand the product range. Ecommerce platforms are scalable, which means you can expand business a lot easier at negligible costs.
Operate Business From Anywhere
When you set up an eCommerce store, you can operate your business from anywhere. Having an eCommerce store also means you can sell your goods and services to all people living in Malaysia. With an eCommerce store, it is easy to target a larger audience that is not possible with offline stores.
To sum up, these are a few reasons why you should start selling online in Malaysia.