Source by iPrice
Analyzing Malaysia's 10 Most Popular eCommerce in the Past Decade
The eCommerce sector is among the fastest growing industries in Malaysia. Recent estimates by Statista reveal that eCommerce platforms has garnered revenue as much as RM4.2 billion as of 2017. Furthermore, the industry is expected to increase to earn as much as RM9.8 billion by year 2022. This goes to show you how much potential eCommerce is in the region.
Statista also revealed data that indicates eCommerce has become an integral part of many Malaysians' lifestyle. In 2017, there were 15.1 million active users in Malaysia which accounts for 47.9% of the country's population.
As the digital economy develops rapidly, it took the industry a decade to get to where it is now. Hence, iPrice Group released this infographic to reveal the history of eCommerce through Malaysia's 10 most popular online platforms in the last 10 years. Click here to view the infographic: https://iprice.my/insights/history-of-ecommerce-malaysia/
2008 -- 2011: The Early Years
The adoption of eCommerce during the early years was spurred by the increased availability of internet services and usage of computers in households and offices. A study by the Multimedia University Malaysia stated that eCommerce earned a high growth potential due to the rapid rise in number of PCs and faster internet connections each year.
C2C platforms such as eBay and Lelong thrived during this era since it gave individuals the ability to sell products with a credible and in a convenient manner. Users unfamiliar with payment gateways could easily buy or sell items through cash on delivery (COD) methods. So instead of inputting their banking information, buyer and sellers can meet face to face to inspect products and accept payments.
The popularity of C2C platforms also spurred the usage of payment gateways and other online payment methods. eBay, which provided Malaysian access to products sold overseas, made it mandatory for users to sign up using PayPal. This encouraged the use of online bank transfer, credit and debit cards in the country.
The 2000s also saw the rise of online boutiques selling items from tech to fashion. Among them is Fashion Valet which formally launched an online platform by popular blogger Vivy Yusof and then boyfriend Fadzarudin Anuar.
2012 -- 2014: Introduction of Online Marketplaces
The development of eCommerce in the 2000s set the foundation for new platforms where some went on to become the country's most popular online marketplaces today. In 2012, Malaysia saw the entry of five additional players which includes Lazada, Zalora, Rakuten, Hermo and 65daigou (rebranded to Ezbuy today).
Rakuten, a highly successful eCommerce platform in Japan launched its Malaysian online marketplace. The Japanese-based platform stated that its entry is timely due to the country's positive market growth and encouraging online shopping trends back in 2012.
This came true for Lazada as it rose to become Malaysia's most searched eCommerce by 2014. The eCommerce platform even overtook pioneers such as Lelong and eBay. Within two years, the startup by Rocket Internet raised around US $814 million in funding which led to its rapid growth and popularity among Malaysians. From then on, Lazada remained among the most successful online marketplaces in the country until today.
2015 -- 2017: eCommerce Now Stands at An Inflection Point
