How E-commerce is Helping Malaysian Businesses Grow

IN The Malaysian economy is driven by a network of micro, small and medium-sized enterprises (SMEs), which form the backbone of the country and account for 97.4% of all enterprises, contributing 38% to the country’s GDP.

SMEs drive innovation, protect cultural heritage and support local prosperity through job creation and community engagement. However, their path to sustainable growth is challenged by increasing competition and resource constraints, especially for businesses outside major urban centres.

Fortunately, digitalization offers a promising solution. E-commerce, the cornerstone of digitalization, provides a powerful platform for SMEs to overcome these obstacles. It can help companies reduce overhead costs, transcend geographic constraints, and unlock new customer bases.

In addition, e-commerce platforms often offer tools and features that increase customer engagement and foster brand loyalty, creating a more interactive and personalized shopping experience. Ultimately, by adopting e-commerce, SMEs can become more competitive in the marketplace, paving the way for long-term success.

Accelerating growth with real-time, meaningful connections

Starting as a small business in Selangor and Kedah, ZEKE Store had big dreams of showcasing the craftsmanship and unique designs of their clothing to Malaysians across the country. However, like many SMEs, they had limited resources and faced fierce competition. Choosing the right platform was key, and for ZEKE Store, Shopee was the game changer.

ZEKE’s success is due in part to its strategic mastery of Shopee Live. This innovative live streaming feature has transformed the retailer’s customer engagement strategy.

No longer limited to static product images, ZEKE Store now uses Shopee Live to showcase the quality, texture, and unique style of its clothing in real time. This dynamic approach deepens connections with viewers by allowing them to interact with the clothing and questions, building trust, and cultivating lasting relationships with customers.

“We don’t just sell products – we build meaningful relationships with our customers through Shopee Live,” said ZEKE founder Lai Ya Long.

By overcoming typical purchasing barriers like the desire to test or touch a product before buying, Shopee helped drive extraordinary results for the local merchant, resulting in a 65% increase in overall store performance. During their “6.6” campaign in 2024, their success grew even more, achieving an impressive 85% increase compared to the same period a year earlier.

For ZEKE Store, Shopee has become more than just an e-commerce platform; it is a key part of their success. By strategically leveraging Shopee Live, they have strengthened their bonds with customers, showcased their brand, and brought Lai’s vision to life.

A New Chapter: Using E-Commerce to Reach Bookworms Nationwide

In 2020, Yong Kon Teck, formerly the operator of a beloved local bookstore, entered the world of e-commerce, fueled by a deep love of books and a vision to transform the book retail landscape in Malaysia. Abandoning the traditional physical bookstore model, Yong founded Funbook to offer readers a wide selection of books nationwide.

But the transition to digital was no easy feat, as Yong, a seasoned bookseller but e-commerce novice, struggled with limited online visibility and a lack of digital marketing experience. That translated into slow sales—a common problem for any new business venture. Determined to succeed, he sought a strategic partner.

Recognizing the need for a different approach, Yong decided to partner with Shopee, leveraging its robust seller features to drive growth. Shopee ads have proven to be a key factor in Funbook’s success.

Through targeted campaigns and strategic ad placement, Shopee Ads has significantly increased Funbook’s visibility on the platform. Book lovers looking for their next literary fix could now easily discover Funbook’s vast and carefully curated selection.

Funbook saw a remarkable 2789.52% increase in sales over the year, marking a key turning point in its journey. Today, Funbook continues to expand, offering an even more comprehensive selection of books reaching readers across Malaysia with the help of Shopee’s extensive network of logistics partners.

“Shopee has been absolutely transformational for our business. Shopee Ads has given us unprecedented visibility and reach, allowing us to grow exponentially and connect with readers across Malaysia,” Yong noted.

Funbook’s journey is not unique. Shopee helps SMEs thrive in the digital age by offering tools, resources, and support. From merchant features to marketing tools like Shopee Ads and integrated logistics support, the platform provides solutions for businesses like Funbook to build an online presence, reach customers, and grow sustainably.

A solid arsenal of tools for SMEs looking to achieve greater heights

As a leading e-commerce platform in Southeast Asia and Taiwan, Shopee continues to prioritize developing strategies and solutions to help local Malaysian businesses overcome their challenges.

Continuing to innovate, Shopee recently launched Shopee Video, which provides customers with entertaining and insightful short videos from content creators. Similar to Shopee Live, this new feature helps sellers generate positive reviews and recommendations for their products, leading to greater awareness and reach for their brands and products.

“At Shopee, we aim to support local businesses like Funbook and ZEKE Store,” says Ming Kit Tan, Head of Marketing and Business Intelligence at Shopee Malaysia.

“We’re not just a platform, we’re a partner. We provide them with tools like Shopee Ads, Shopee Live, integrated logistics, and features that help them elevate their customer experience, like hassle-free returns and delivery guarantees. We handle the technology so they can focus on what they do best, whether that’s curating the perfect selection of books like Funbook or showcasing unique fashion finds like ZEKE Store.”

Customer Focus: Satisfied Customers, Prosperous Businesses

For many SMEs, cultivating strong customer relationships is key to success. Shopee understands this, and its recent launch of customer-centric programs and features isn’t just about keeping shoppers happy – it’s also about driving growth for sellers.

As of March 2024, Shopee has expanded its change of mind policy to offer hassle-free returns on a wider range of products to give customers peace of mind as they explore new offerings while ensuring merchants retain happy customers with fast and easy returns.

Additionally, Shopee’s best-in-class returns and refunds process can be completed within two days for payments via ShopeePay – significantly faster than the industry average of seven days.

Fast and reliable deliveries are another priority as part of Shopee’s commitment to service excellence, with programs like Instant Delivery, Next Day Delivery, and On-Time Guarantee. The On-Time Guarantee even offers customers a RM5 voucher if an order arrives late, encouraging fast deliveries and building buyer trust – a key factor in any seller’s success.

Working with a network of third-party logistics (3PL) partners, Shopee is rolling out free shipping across its entire platform this month to further enhance the value it offers customers and provide them with the best shopping experience.

“Customers are the lifeblood of both SMEs and Shopee. Delivering a high level of service is Shopee’s top priority, which will undoubtedly benefit merchants on our platform by ensuring greater customer satisfaction, loyalty, and repeat purchases,” Tan said.

By prioritizing customer satisfaction through these initiatives, Shopee is enabling Malaysian SMEs to reach a wider customer base and achieve sustainable growth. This is a win-win situation for both sellers and buyers – a satisfied customer becomes a loyal one, and Shopee’s commitment to providing a seamless shopping experience nurtures just that.