Do you wonder how does e-commerce website in Malaysia actually performs?
Over the past few years, e-commerce has become a crucial aspect of the global economy as the world shifts towards digitalization.
Businesses that do not embrace e-commerce risk falling behind their competitors.
In Malaysia, the e-commerce industry is rapidly growing. Based on the statistics given by Statista:
- Revenue in the eCommerce market is projected to reach US$10.19bn in 2023.
- Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 13.62%, resulting in a projected market volume of US$16.98bn by 2027.
- With a projected market volume of US$1,487.00bn in 2023, most revenue is generated in China.
- In the eCommerce market, the number of users is expected to amount to 19.64m users by 2027.
- User penetration will be 48.7% in 2023 and is expected to hit 55.0% by 2027.
- The average revenue per user (ARPU) is expected to amount to US$609.90.
Despite this growth, many Malaysian businesses have yet to fully embrace e-commerce, which can limit their customer reach, create dependency on physical stores, and prevent the ability to track and analyze customer data.
Some example of top e-commerce website in Malaysia that has been widely used until now is Lazada, Shopee, Zalora, and Lelong.my, PG Mall and others.
This article will explore the importance of e-commerce websites in Malaysia and how they can help businesses increase their revenue.
The Problem: Limited Customer Reach and Dependence on Physical Stores
Many Malaysian businesses need to fully embrace e-commerce.
Despite the promising growth of the e-commerce industry in Malaysia, many companies still need to establish an online presence instead of relying solely on physical stores to reach customers.
This issue can relate to e-commerce business owners who may feel that setting up an online store is unnecessary or too complicated.
However, this limited approach to sales can lead to missed opportunities and decreased revenue, especially during the Covid-19 pandemic.
Without an e-commerce website in Malaysia, businesses risk limited customer reach, dependency on physical stores, and the inability to track and analyze customer data.
These problems can result in reduced revenue, stunted growth, and limited competitiveness.
How it Can Impact Your Business Growth in Malaysia
The issue of Malaysian businesses needing to fully embrace e-commerce is more serious than it may seem.
Since the Covid-19 pandemic, there has been a significant shift in consumer behaviour towards online shopping, with more customers preferring shopping online rather than in physical stores.
Businesses need an e-commerce website to take advantage of this opportunity to reach a wider audience and capture a larger market share.
Moreover, businesses that rely solely on physical stores risk becoming dependent on foot traffic, making them more vulnerable to changes in consumer behaviour or external factors such as lockdowns and movement restrictions.
This can lead to reduced revenue and even closure in extreme cases.
Another crucial issue is the need for tracking and analyzing customer data. With an e-commerce website, businesses can collect essential data on customer behaviour, preferences, and shopping patterns.
This information is vital for making data-driven decisions to help businesses tailor their products and services to meet customer needs, increasing customer satisfaction and loyalty.
Furthermore, businesses need an e-commerce website to take advantage of cost savings and increased revenue resulting from online sales. By not embracing e-commerce, companies risk limited growth and reduced competitiveness as more competitors adopt e-commerce strategies to reach a broader customer base.
Establishing an Effective Ecommerce Website
To address the issue of limited ecommerce adoption among Malaysian businesses, the solution is to establish an effective e-commerce website.
Reach wider audience
This will help companies to reach a wider audience, increase revenue, and remain competitive in a rapidly changing business environment.
With an e-commerce website, businesses in Malaysia can extend their customer reach beyond their physical location, tapping into a larger market share.
This is particularly important in Malaysia, where e-commerce sales are expected to grow from RM14.4 billion in 2019 to RM50.85 billion by 2025, offering significant growth opportunities for e-commerce-friendly businesses.
Reduce Dependency on Physical Existence
Furthermore, an e-commerce website can help businesses reduce their dependence on physical stores and foot traffic, making them more resilient to changes in consumer behaviour and external factors.
This can help businesses sustain revenue streams and remain operational even during challenging times.
Track & Analyze Customer Data
One of the significant benefits of having an ecommerce website is the ability to track and analyze customer data.
By collecting and analyzing data on customer behavior, preferences, and shopping patterns, businesses can make informed decisions that help them tailor their products and services to meet customer needs.
This can result in increased customer satisfaction and loyalty, leading to business growth.
Cost-Savings & Increase Revenue
Moreover, ecommerce websites offer cost savings and increased revenue opportunities that can result from online sales.
By automating the sales process, businesses can save costs associated with physical stores, such as rent, utilities, and staffing.
Additionally, ecommerce websites can offer 24/7 sales, allowing businesses to capture sales even when physical stores are closed.
Establishing an effective ecommerce website can help Malaysian businesses increase revenue and remain competitive in a rapidly evolving business environment.
By embracing ecommerce, businesses can expand their customer reach, reduce reliance on physical stores, track and analyze customer data, and capture cost savings and increased revenue opportunities.
How Ecommerce Can Grow Your Business in Malaysia
Establishing an effective e-commerce website can lead to a significant transformation for businesses in Malaysia.
Before having an e-commerce website, businesses may face challenges such as limited customer reach, dependency on physical stores, and the need for data-driven decision-making.
However, by embracing e-commerce, businesses can transform their revenue, customer reach, and decision-making processes.
Increase in Revenue
For instance, businesses can expect a substantial increase in revenue by expanding their customer reach beyond their physical location and capturing sales opportunities that would have been missed without an e-commerce website.
This can lead to significant revenue growth and increased profitability.
Reduce Physical Stores
Moreover, businesses can reduce their dependence on physical stores by having an e-commerce website, making them more resilient to changes in consumer behavior and external factors.
With an online presence, businesses can capture sales opportunities even when physical stores are closed.
Increase Customer Satisfaction
In addition, ecommerce websites offer data-driven decision-making opportunities. By collecting and analyzing data on customer behavior, preferences, and shopping patterns, businesses can tailor their products and services to meet customer needs, resulting in increased customer satisfaction and loyalty. This, in turn, can lead to increased revenue and profitability.
Embracing ecommerce can lead to cost savings and increased revenue opportunities. By automating the sales process and reducing the costs associated with physical stores, businesses can capture cost savings and increase their revenue opportunities, leading to increased profitability and business growth.
Establishing an effective e-commerce website can lead to a significant transformation for businesses in Malaysia. By embracing e-commerce, businesses can experience revenue growth, increased customer reach, data-driven decision-making, cost savings and increased revenue opportunities.
E-commerce websites play a crucial role in the success of businesses in Malaysia. With the projected increase in e-commerce sales, businesses must embrace ecommerce to remain competitive and capture revenue opportunities.
An effective ecommerce website can help businesses expand their customer reach, reduce their dependence on physical stores, track and analyze customer data, and capture cost savings and increased revenue opportunities. This transformation can lead to significant revenue growth and increased profitability.
Suppose you’re a business owner in Malaysia looking to establish an effective e-commerce website. In that case, our e-commerce web design service can help. Our team of experts can create a customized e-commerce website that meets your unique business needs and enables you to achieve your goals.
Don’t let limited customer reach and dependence on physical stores hinder your business growth. Embrace e-commerce today and experience the transformation it can bring to your business. Contact us now to learn more about our e-commerce web design service and take the first step towards growing your business.