How to Start an E-Commerce Business in Malaysia
The e-commerce boom has proven to be one of the most exciting retail trends to watch over the past few years. With online sales expected to top retail sales in the US by 2020, e-commerce is rapidly gaining traction as a mainstream marketplace.
In Malaysia, the eCommerce sector has also seen significant growth over the past few years, with the sector posting growth rates of close to 30 percent per annum. There are a number of factors that make the e-commerce boom in Malaysia so promising, including a growing middle class, growing internet penetration, and a high level of internet usage among Malaysians. Moreover, e-commerce has the potential to reach a wider audience with the growth of social media, mobile shopping, and online payment options.
How to Start an E-Commerce Business in Malaysia
If you want to start a Malaysia e-commerce business, you first need to determine whether your business will be online only or brick and mortar as well. If you’re starting an online store, there are a number of ways to build and promote your business. You can use social media platforms like Facebook and Instagram for free advertising by posting pictures of your products and encouraging likes and shares.
You can also invest in Google AdWords, which is a kind of search engine optimization (SEO) where you pay for ads when someone searches for related keywords. There are also companies that offer free websites if you sell certain products or services – think about what you’re selling and see if there are any companies that offer a free website.
The Challenges of E-Commerce in Malaysia
Despite the opportunity afforded by the e-commerce boom in Malaysia, there are a number of challenges that need to be addressed. These include:
1) The high cost of doing business online.
2) Low levels of trust among buyers and sellers.
3) Lack of awareness about e-commerce among consumers.
4) High level of fraud and scams on the internet.
6) Unavailability of goods and services to Malaysians living abroad.
Finding the Right Dropshipping supplier
One of the most difficult tasks for any entrepreneur is finding the right supplier. There are many things to consider, from product quality to delivery times, to payment methods and more. With drop shipping, you don’t have to worry about these things. You simply choose the products you want to promote and then find a drop shipper who has an inventory of that product.
The process is simple: You’ll create a listing on your site with the relevant information about the product including pricing info, description, and images. This can be done in less than five minutes using a service like Shopify. Next, you’ll set up a wholesale account with your drop shipper of choice – this only takes a few minutes as well. After that, it’s all about marketing your products!
When someone buys one of your products through your site, they will be redirected to the drop shippers site where they can purchase it at retail price plus the shipping cost (which should be minimal). The order then gets shipped directly from their warehouse to the customer’s house. As long as you have enough demand for that particular product, this is a great way to make money online!
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Why Fulfillment by Amazon?
Another key factor that has contributed to the growth of e-commerce in Malaysia is the Fulfillment by Amazon program. Launched in 2013, this program allows Malaysian sellers to ship their products to Amazon’s fulfillment centers and, when customers order these products on Amazon.com, they are shipped from there instead of from the seller’s own warehouse.
An increasing number of sellers are opting for this service as it comes with a range of benefits, including visibility on Amazon (Amazon’s search engine is seen as one of the most powerful digital marketing tools), increased conversion rates, and access to 32 fulfillment centers across the globe.
We know how hard it is to find the right supplier, fulfillment service, and e-commerce platform to sell your products online. But with the right knowledge, you can build a successful e-commerce business that will last.
How to Start an E-Commerce Business in Malaysia