Showing posts with label Malaysia E-Commerce Shipments Market. Show all posts
Showing posts with label Malaysia E-Commerce Shipments Market. Show all posts

Tuesday, March 21, 2023

Investments from Government, Emerging AI Technologies and Faster Delivers are the Major Trends driving the E-Commerce Shipments Market in Malaysia: Ken Research

 1. Malaysia E-commerce Shipments Market has witnessed a Strong Growth Trajectory Backed by Competitive Technological Advancements

Malaysia E-commerce Shipments Market

Malaysia E-commerce shipments market has been observed in its early growth stages of development, thus growing year on year majorly due to rising E-retailing coupled with increase in the number of online orders. Expansion in internet services (~80% internet penetration in 2021) coupled with increasing demand for online logistics services have collectively given a boost to development of E-commerce shipments industry in Malaysia. Updated Technology such as Live Tracking, Automation, WhatsApp Bots, AI Systems, IoT, Telematics are used by e-com logistics players.

2. Ecommerce growth in Malaysia is primarily driven by a growing number of digitally-savvy, middle-class people who are looking for great deals and access to international brands.

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Businesses in Malaysia are supported by a host of efficient and modern infrastructural and technical implementations that facilitate trade, transactions and deliveries. The advanced logistics, connectivity and trading establishments are the foundations upon which the modern technology driven enterprises have found their incredible growth.

Traditionally ecommerce players in Southeast Asia faced logistical challenges due to the fragmented topology of the region dominated by multiple islands and dense jungles. However, Malaysia is segregated into only two major parts – Peninsular Malaysia and East Malaysia; which makes ecommerce logistics a whole lot more straightforward and cost-effective.

Malaysia boasts of an incredible 140% mobile penetration and 85% internet penetration. More than 26 Mn Malaysians access the internet and about 80% of users between the ages of 16 and 64 are already shopping online. Malaysia’s mobile commerce growth is outpacing overall e-commerce, projected to rise at a compound annual growth rate.

3. More than 2 Days delivery will still dominate the Malaysian E-commerce shipments market

Malaysia E-commerce Shipments Market Revenue

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Many E-commerce companies are increasingly offering 24-hour delivery promise to its customers to encourage speedy deliveries in and around Kalang Valley, Selangor and Kuala Lumpur, giving a boost to the same day deliveries in Malaysia. Post Pandemic, groceries and essential items are being processed at a faster rate to ensure same day/next delivery of these products to the customers across the country.

4. Digital Free Trade Zone along with other initiatives launched in Malaysia by the Government to support Efficient Cross Border Trade with E-Commerce as the priority sector

Digital Free Trade Zone (DFTZ) was launched under MITI in 2017 to facilitate seamless cross-border trade and enable local businesses to export their goods with a priority for e-commerce. The e-Fulfilment Hub under DFTZ will be developed over two phases where the first phase will be at the Kuala Lumpur Airport Cargo Terminal operated by POS Malaysia to serve e-commerce players.

Based on Section 14 of the Commercial Vehicles Licensing Board Act 1987 (“CVLBA 1987”), to provide transportation services, two types of licenses are available. Carrier License A – to provide transportation services to third parties using commercial vehicles; Carrier License C – to provide services for their own use.

Wednesday, April 13, 2022

Future Growth of Malaysia E-Commerce Shipments Market: Ken Research

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How is the Malaysia E-Commerce Shipments Market Positioned?

Malaysia is one of the top-ranking countries in Asia in terms of internet penetration with 88.5% penetration in 2021. Malaysia’s internet infrastructure, youthful, tech-savvy population and rising mobile/broadband penetration rates all point to strong potential for the country’s e-commerce market. Malaysia’s e-commerce market registered a double-digit year on year growth for the last few years owing to the rising Internet and smartphone penetration, growing middle class population and tech-savvy millennials. Improving logistics has a major influencer for e-com growth in Malaysia. The advent of players offering last-mile delivery options has allowed retailers to improve e-com logistics to support growth and scale.

Malaysia E-commerce shipments industry has been observed in its early growth stages of development, thus growing year on year majorly due to rising E-retailing coupled with increase in the number of online orders. The Malaysia shift towards e-commerce is boosted by certain factors including growing middle class, growing government support, and convenience of a digitalized shopping experience.


Expansion in internet services (~88.5% internet penetration1 in 2021) coupled with increasing demand for online logistics services have collectively given a boost to development of E-commerce shipments industry in Malaysia. Updated Technology such as Live Tracking, Automation, Whatsapp Bots, AI Systems, IoT, Telematics are used by e-com logistics players.

Malaysia E-Commerce Shipments Market Segmentation

By B2C and C2C E-Commerce: Business-to-consumer E-Commerce is among the most popular and widely known sales models generating majority of the revenue in Malaysia in 2021. The C2C market is also growing because of its cost-effectiveness.

By Sourcing and Delivery: Klang Valley comprising of includes Selangor and Kuala Lumpur generated the highest orders of more than $300 Mn for both Sourcing and Delivery in 2021.

By Volumetric Weight: 1-2 KG Shipments accounted for the highest number of orders in Malaysia.

By Delivery Period: Majority of the E-Commerce Shipments takes more than 2 days to get delivered in Malaysia except for the regions such as Klang Valley.

By Payment: COD are the most preferred payment method since the 45-54-year-old age group still prefers COD when shopping online.

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Competitive Landscape Of Malaysia E-Commerce Logistics Market

The e-commerce logistics space in Malaysia is in Growth Stage and is fragmented with presence of ~1000+ Express Logistic companies delivering the E-Commerce Shipments across the country. Top 3 players namely Shoppee, Lazada & POS have ~60.0% market share. Companies are battling against each other to acquire and retain clients, expand geographical presence, expand service offering and improve unit economics to increase margins. Fleet size, number of orders, clientele, number of delivery centers, value-added services, price, and delivery time are the key competing parameters for the e-commerce logistics providers.

Malaysia E-Commerce Logistics Market Future Outlook and Projections

Over the forecast period, Malaysia E-commerce logistics market is expected to drive up the demand because of expected surge in internet penetration, especially its exposure to the youth. Due to the COVID-19 outbreak, there has been a shift from offline sales to online sales, which is expected to ensure substantial growth in the future as well. The e-commerce logistics market in the country is expected to grow on the back of new technologies such as Automation, Blockchain, and the Internet of Things, which will be explored to increase efficiency, improve customer experience and enhance service quality.

Key Segments Covered: -

By B2C and C2C E-Commerce

B2C E-Commerce

C2C E-Commerce

Market Segmentation By Sourcing

Klang Valley

Johor

Penang

Other

Market Segmentation by Delivery

Klang Valley

Penang

Joho Bahru

Sarawak

Other States

Market Segmentation by Volumetric Weight

0-1 KG

1-2 KG

2-5 KG

5-10 KG

Greater than 10 KG

Market Segmentation by Delivery

Same Day delivery

Next day Delivery

More than 2 days

Market Segmentation by Payment

Cash

E-wallet

Debit Card

Credit Card

QR Pay

Bank Transfer

E-Commerce Logistics Companies Covered

City Link

ABX Xpress

POS Malaysia

Skynet

GD Express

Xin Haw

Ninja Van

J&T Express Malaysia

DHL e-commerce

Shopee Express

LEL (Lazada Express)

E-Commerce Marketplace Platform Covered

Shopee

Lazada

Lelong.my

Carousell Malaysia

Zalora Malaysia

E-bay Malaysia

Key Target Audience

3PL Logistics Companies

Integrated Logistics Companies

E-Commerce Marketplace Platform

Retail Companies

Logistics/Supply Chain Industry Associations

Time Period Captured in the Report: -

Historical Period – 2016-2021

Forecast Period – 2021-2026

Key Topics Covered in the Report: -

Malaysia E-Commerce Market Overview

Cross Comparison- Major E-Commerce Players in Malaysia

Malaysia E-Commerce Logistics Market Overview

Malaysia E-Commerce Logistics Market Size

Malaysia E-Commerce Logistics Market Segmentation 2021

Malaysia E-Commerce Shipments Pricing Analysis

Malaysia E-Commerce Logistics Market Growth Drivers

Malaysia E-Commerce Logistics Market Trends & Developments

Malaysia E-Commerce Logistics Market Government Role and Initiatives

Malaysia E-Commerce Logistics Market Logistics Constraints

Malaysia E-Commerce Logistics Market SWOT Analysis

Competitive Landscape of Malaysia E-Commerce Logistics Market

Malaysia E-Commerce Logistics Market Cross Comparison

Malaysia E-Commerce Logistics Market Pricing Analysis

Future Market Size and Segmentations, 2021-2026F

Covid-19 Impact on Malaysia E-Commerce Logistics Market

Analyst Recommendations

Case Studies

For More Information on the research report, refer to below link: -

Malaysia E-Commerce Shipments Market Analysis

Related Reports by Ken Research: -

UAE E-Commerce Logistics Market Outlook To 2025 – Driven By Growth In Online Shoppers Along With Introduction Of New Age Technologies By Logistics Players

Philippines E-Commerce Logistics Market Outlook To 2025 - Driven By Growth In Internet Penetration Along With Introduction Of New Age Technologies By Logistics Players

India E-Commerce Logistics Market Outlook To 2025-Driven By Changing Shopping Patterns And Increasing Demand Of Fast Delivery Services

Contact Us: -
Ken Research
Ankur Gupta, Head Marketing & Communications
Support@kenresearch.com
+91-9015378249