When it comes to e-commerce, Malaysia has one of the fastest growing markets in Southeast Asia. With Southeast Asia’s revenue adding up to US$1,077,761 million in 2020, e-commerce in Malaysia is projected to amount to US$3.91 billion in 2020 (Statista, 2019).
Furthermore, with a growing digital population of 22.33 million, Malaysia undoubtedly attracts a diverse range of companies from both the national and international e-commerce market. As such, the e-commerce market presents a huge opportunity for SMEs in Malaysia. Companies like Lazada, Zalora, Shopee, and Carousell have been largely popular and have served as an inspiration to aspiring business owners. Yet, behind these opportunities lie key challenges that companies must tackle in order to succeed in the industry.
In today’s article, we discuss the challenges faced by SMEs in the e-commerce scene in Malaysia.
1. Adoption of e-commerce Platform
E-commerce platforms require companies to have knowledge of graphic design, photography skills, content creation to compete with other companies. Employees who are skilled in digital marketing and advertising are also required to execute the plans and reach out to the target audience effectively. This may be daunting for traditional business owners who may find it difficult to adapt to the industry and fail to stand out from their competitors.
2. Attracting Consumers
Displaying the company products online is perhaps the easiest step – attracting consumers to your site and sustaining sales requires much more than displaying your products alone. It requires practice, experience, knowledge, trial and error, capital, patience, and of course, failure. But it is crucial for business owners to learn from their failures and improvise to succeed in the industry.
3. External Threats
Future Potential of E-Commerce in Malaysia
Competition in the digital marketing realm will also be exacerbated due to the proliferation of advertisements via digital media outlets. As such, marketers have to be more innovative in order to stand out among their competitors and attract consumers’ attention.
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