Why Are Malaysians Shopping Online?

Katrina B. & Benedict L

Malaysia’s Online Shoppers and Their Online Shopping Behaviour

We Are Social's compilation of online payment behaviour in Malaysia

Malaysia is known for its legendary shopping seasons. And its Mega Sale Carnival is often described as the ‘mother of all sales’1, attracting locals and tourists alike and cementing Kuala Lumpur’s reputation as one of Southeast Asia’s shopping meccas.

But a new realm of shopping is capturing Malaysians’ eyes and wallets. eCommerce has grown exponentially around the world in recent years, and Malaysia is no exception. Despite making up only two per cent of all sales in the country, online sales in Malaysia is expected to make up double-digits 2 of all sales in Malaysia in the near future. In fact, different analysts identify the country as either the second or third largest eCommerce market in Southeast Asia.

However, an eCommerce index3 by Fitch Solutions reveals that Malaysia is outperforming its ASEAN neighbours in terms of eCommerce sales growth, projected to increase from US$8.3 billion in 2019 to US$12.9 billion in 2022. Over the same period, the country’s consumer spending is forecast to grow at a rate of five per cent annually.

A few factors drive this growth:

  • The number of eCommerce consumers in Malaysia is skyrocketing to reach 21.9 million in 2020*4

  • The country is becoming increasingly affluent and is on track toattain the status of ‘developed country’5 (provided that it avoids an economic plateau)

  • It has a growing middle class, but consumers in this class face pressures such as high taxation6 and cost of living7, coupled with stagnant salaries8. As such, they have high incentives for pursuing cheaper sources of products (such as online sales)

  • High internet and smartphone penetration at 85.7 percent9 and 70 per cent10, respectively

*Up-to-date as of 20th January 2020

All this paints a rosy picture for eCommerce sellers, but it begs the question: who are Malaysia’s online shoppers?

An overview of Malaysia’s online shoppers

Most Malaysians are online shoppers, but exact statistics tend to vary based on sources. If you’re looking at export.gov, almost half10 of Malaysia’s 32-million-strong population shop online. A third of the population11 (39 per cent of women and 38 per cent of men) make online transactions, such as buying items or paying bills.

Surprisingly, men are just as likely to shop online as women, based on a study of the eCommerce habits12 of undergraduate and postgraduate students in Malaysia. Despite featuring more female participants, the study found that at least 50 per cent of both male and female respondents shopped once a month or more.

Primary motivators for shopping online

Researchers, such as those from Paypal and Ipsos, found that Malaysians like to shop online because doing so saves time. In their busy schedules, the convenience of having your purchases delivered straight to your doorstep is undeniable. The ease of comparing prices across platforms and even countries gives Malaysians a wider variety of items, and even price points, to choose from.

Interestingly, many Malaysian shoppers do tend to favour products bought from overseas online stores, with 40% of eCommerce purchases13 being cross-border. To find out Malaysians’ likely motivations for cross – border shopping according to research by Paypal14 are as follows:

  • Better prices (72%)

  • Access to items not available in my country (49%)

  • I can discover new and interesting products (34%)

  • Higher product quality (29%)

  • Shipping is more affordable (24%)

Paypal’s finding that people around the world really love great prices seems to ring true for Malaysians as well. This love for good deals could likely be driven by a rising middle class who faces comparatively high taxes and stagnating wages.

This is likely why 11.11 and 12.12 have become some of Malaysia’s biggest eCommerce events. These events offer discounts as high as 90 per cent and achieve the highest sales in the Home & Living, Fashion, Health & Beauty, Accessories, and Mother & Baby categories. According to analysis by iPrice15, Malaysians spent RM277 on each online order during Singles’ Day compared to RM130 on a normal day in 2019.

It seems that Malaysians are also avid last-minute shoppers. The same iPrice analysis reports that online shopping activity was at its highest just before the day ended as Malaysians continued looking for the 11.11’s final deals.

Looking to ship your cross-border eCommerce sales to Malaysian consumers? Have a chat with us to find out how Janio’s modular cross-border shipping services can help get your products delivered to them from end to end!

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As mentioned in Paypal’s findings, some of the products Malaysians look for overseas are either hard to find at their local stores, or are cheaper overseas or of higher quality compared to alternatives available locally. In some cases, these products are available overseas a lot sooner before they become available in Malaysia. One example would be the success of Amorepacific16, a company that imports top performing South Korean beauty products for reselling in Malaysia.

Planning their discounts

Malaysians also shop online in preparation for major holidays, especially Chinese New Year and Ramadan. They search eCommerce platforms weeks ahead of these celebrations17 in order to compare products and prices.

Buyers look for gifts to give to their family and friends on Chinese New Year, as well as beauty and fashion products that will help them refresh their look for the year ahead. During Ramadan, they look for clothing to wear at the Hari Raya Aidilfitri celebration at the end of the season.

What influences their purchase choices?

Input from friends and family is particularly important for Malaysians. Word-of-mouth referral18 also encourages brick-and-mortar shoppers to try out eCommerce. Reviews are a major factor for 71% of Malaysians’ online purchase decisions in 2019, according to research by vase.ai19.

Surprisingly, social commerce is also pretty big in Malaysia. In some reports, the country is said to be the world’s fourth largest market for social commerce adopters20. A more recent survey19 found that 87 per cent of survey respondents had bought something through apps like Facebook, Facebook Messenger or Whatsapp which shows that these channels are worth exploring.

Vase.ai’s research18 also breaks down the stimulus that gets Malaysians thinking about shopping as follows:

Online Stimuli

  • Surfing social media – 66%

  • Direct influence from friends and family – 49%

Offline stimuli

  • Shopping malls – 28%

  • Television – 21%

  • Magazines and/or newspapers – 19%

    *The percentage listed here measures how many survey respondents agreed these factors impacted their online purchase decisions

In the research, Malaysians mentioned that the most effective online stimuli are social media and eCommerce websites, followed by branded websites, apps and video websites like YouTube, Twitch and Vimeo.

At the consideration stage, Malaysian shoppers tend to rely on articles and blogs, infographics and videos when deciding what to buy and where they’ll buy it from. They also actively seek out information from product reviews, compare products with their alternatives and follow product launch updates.

This means getting Malaysians to convert into eCommerce buyers requires a robust online strategy to supplement your online and/or offline store’s marketing strategies.

Thinking about expanding your online store to Malaysia? Get the latest tips and tricks in our latest Malaysian e-book!

2019 Guide to Entering Malaysia’s eCommerce Market

Where do Malaysians shop online?

It bears repeating that eCommerce has opened up international sales channels to Malaysians, allowing them to purchase products unavailable in the country. In some cases, even if these products are available in Malaysia, they may be launched earlier overseas or may even be priced lower. That’s why many Malaysians shop online on websites like Amazon or Alibaba’s Tmall and why foreign sales events like Black Friday and Cyber Monday are making their way into local buyers’ lingo.

The International Trade Administration (ITA), US Department of Commerce reports10 that Malaysians like to buy items from the following countries:

  • China
  • Singapore
  • Japan
  • the United States
  • South Korea

Locally, Lazada, Mudah, Lelong, Shopee, and 11street attract a large chunk of Malaysia’s eCommerce consumers. In terms of B2C marketplaces, iPrice’s ‘Map of eCommerce’ Malaysia* mentions the following are the top five eCommerce platforms in the country.

  • Lazada – 26.2 million monthly web visits

  • Shopee – 20.2 million monthly web visits

  • 11 Street – 8.4 million monthly web visits

  • Lelong – 4.5 million monthly web visits

  • Zalora – 2.2 million monthly web visits

*Using Q3-2019 statistics

Lazada is quite successful—it is the only eCommerce platform among Malaysians’ top visited websites, according to the We Are Social 2019 report11. Both Lazada and Shopee, though, joined the top 10 list of apps with the most active monthly mobile users.

Wearesocial's Mobile App Rankings: Active Users

How Malaysians pay for online purchases

Malaysian eCommerce consumers use a variety of payment methods, such as cash on delivery (COD), credit card, and online transfer.

Online Payment Behaviour in Malaysia - source Hootsuite, Wearesocial - Janio infographic

Sources: We Are Social, International Trade Administration USA

From the above results, mobile banking is the most popular method of paying for online purchases. On the other hand, the slew of new payment options like mobile payments means that these options shouldn’t be ignored either. On the bright side, the wide availability and popularity of online-enabled payment solutions means that getting payment for your products for the most part shouldn’t be too troublesome.

Interestingly, Maybank2U consistently ranks11 among the top 10 in different lists of Malaysians’ most visited websites, as well as on the top Google search queries in the country in 2018. This could be explained by Maybank2U’s21 users using the web banking service to make on-the-go online payments, including for eCommerce purchases. Maybank2U offers a variety of personal and digital banking services, such as Samsung Pay, Visa Checkout, transfers, a mobile wallet, and a promotions app.

On the other hand, it is still advisable to offer cash on delivery (COD) as a payment method when expanding your eCommerce store into Malaysia. Online merchants can offer COD via an eCommerce platform or a shipping partner which supports and facilitates COD transactions. According to Nielsen22, many 45-54-year-old Malaysian shoppers preferred COD when shopping online.

This is because they are afraid of credit card scams, and they may not necessarily trust an eCommerce platform with their payment data, which brings us to the next point about potential roadblocks for eCommerce in Malaysia.

eCommerce problems for Malaysian consumers

Of course, online shopping is not entirely trouble-free. Long delivery times can discourage buyers, which is why many Malaysian online shoppers are willing to pay more2 for their purchase to arrive more quickly. Around half of the eCommerce consumers in Malaysia expect to receive products bought from local sellers within three days.

Fraud is another—and more serious—concern. An analysis of cybercrime in social commerce transactions23 in Malaysia paints a not-so-pretty picture. Among the respondents, 9 per cent experienced making an online purchase but not receiving the product at all. Another 23 per cent experienced receiving a product that was different from what was promised.

And despite increasing adoption of cashless payment methods, 46 per cent of Malaysian consumers still distrust the security of online payments24, especially when using smart devices. The majority—70 per cent—prefer online interbank transfers, cash, and ATMs.

However, a recent survey by vase.ai 19is showing that e-wallets may slowly be picking up. According to that study, e-wallet usage stands at 40% with 55% of survey respondents indicating they want to start using it in the next 12 months.

In its National eCommerce Strategic Roadmap25, the Malaysian government pointed out that the fulfilment experience can be frustrating. Many sellers make deliveries during office hours, when people are at work instead of at home. This leads to the risk of the items being returned to the seller, or to the inconvenience of having to pick up the parcel from a depot.

The government also lamented the lack of product diversity. This is partly due to the fact that SMEs in Malaysia have been slow to adopt eCommerce. By enabling more brick-and-mortar retailers to sell, the government hopes to increase eCommerce adoption, as consumers will have plenty of items and product categories to choose from.

Entering the Malaysian market

For eCommerce merchants in Southeast Asia, Malaysia is one of the most attractive markets given its population size and increasing affluence. eCommerce merchants eyeing this market can take advantage of certain opportunities through the following strategies.

  • Providing a diverse product range. Given the government’s concern about product diversity, online sellers have the opportunity to satisfy an unmet need among Malaysian consumers. One way to do this is to research the available products carried by popular sellers, and offer alternatives or related items and accessories.

  • Check out popular offline items. Find out what products are selling like hotcakes on brick-and-mortar stores, but can just as easily be sold online. See if you can make and sell those items online at a better price.

  • Offer a wide range of payment options. Think e-wallets, online transfers, credit cards, and cash on delivery. Explore virtual banking options, too.

  • Provide a superior fulfilment experience. Find reputable shipping partners and use an efficient cross-border shipping model. Allow consumers to track deliveries in real time, so they’ll never be left guessing when to expect their items.

  • Understand local nuances. Know what Malaysians like to buy, and when. Understand the customs, traditions, and holidays that drive their shopping seasons.

With the right product and an excellent eCommerce delivery experience, online merchants in Southeast Asia can capture a share of the Malaysian eCommerce market. To succeed, keep an eye out for shifting trends, and always keep learning about your consumers.

Janio provides flexible and end-to-end cross-border shipping services to help you ship to and throughout Malaysia and Southeast Asia. If you’d like to find out more about what we do, contact us via the link below:


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Interested in eCommerce in Malaysia?

Find out more about Malaysian eCommerce here:


  1. Vision KL: Malaysia Mega Sale Carnival 
  2. ASEAN Up: Insights and trends of e-commerce in Malaysia 
  3. Fitch Solutions: Asia E-Commerce: The Outperformer, Growth Potential Unmistakable
  4. Statista: Malaysia eCommerce Market
  5. Nikkei Asian Review: Malaysia on track to developed country status — but has far to go
  6. Malay Mail: The overtaxed Middle Class
  7. New Straits Times: 2019 Budget – Don’t forget the middle income group
  8. Free Malaysia: Gap between rich, middle-income earners set to widen further
  9. New Straits Times: Malaysia’s Internet penetration is now 85.7 per cent
  10. The Star: Mobile cellular penetration reaches 131.8%
  11. Export: Malaysia Country Commercial Guide
  12. DataReportal: Digital 2019 Malaysia
  13. Journal of Internet Banking and Commerce: eCommerce Adoption and an analysis of popular eCommerce sites in Malaysia
  14. Payvision: Cross-border ecommerce trends in 2017
  15. Paypal: Cross-border consumer research 2018
  16. iPrice: Malaysians Spent an Average RM277 on Singles’ Day, 13% Increase to Previous Years
  17. New Straits Times: More than skin deep
  18. Think With Google: How to capture Malaysians’ attention during Chinese New Year
  19. Vase AI: 2017 Online Shopping Trends in Malaysia
  20. Vase AI: 10 Trends You Must Know about the Malaysian Retail Space in 2019
  21. Marketing Magazine: Malaysia 4th largest world market for social commerce adopters
  22. Maybank: Maybank E-Commerce Credit Card Facility
  23. Nielsen: Cash or Cashless? Malaysia’s shifting payment landscape
  24. Cybercrime in Malaysia: An Exploratory Study of Social Commerce Users and Fraud Victims
  25. Digital News Asia: Almost 50% of Malaysian consumers distrust of online payment security
  26. Malaysia’s National eCommerce Strategic Roadmap

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