Malaysia’s e-commerce market is no longer short of sellers. The challenge now is staying competitive as more businesses fight for the same customers.
The shift is changing what it takes to build an online business. Being present on an e-commerce platform is no longer enough. Sellers also have to manage pricing, inventory, fulfilment, marketing and customer service while keeping costs under control.
BusinessToday sat down with Shopee Malaysia Director of Revenue & New Business Opal Wu to discuss what is driving the next phase of e-commerce growth and what it means for businesses trying to remain in the market.
Wu sees the next phase as one driven less by the number of sellers entering e-commerce and more by how effectively businesses use technology, data and infrastructure to improve productivity.
“The businesses that can make faster, more well-informed decisions will be better positioned to grow sustainably,” he said.
Competition Is Moving Beyond Price
E-commerce has made it easier for businesses to reach customers nationwide. However, it has also made it easier for competitors to enter the same market.
For new sellers, being listed on a platform is therefore no longer a competitive advantage. They need to offer something that gives customers a reason to choose them over established sellers and similar products.
That is becoming harder as the way consumers discover products changes. Livestreams, short-form videos, creators and affiliate content now play a larger role in driving purchases.
The shift also means more work for merchants. Creating content, managing campaigns and tracking performance all require time and skills that smaller businesses may not have when they first enter the market.
This makes productivity increasingly important, particularly as businesses move from attempting their first sales to handling larger volumes.
Growth Brings Operational Pressure
More orders can expose weaknesses that are less visible when a business is small.
Inventory needs to be tracked. Orders need to be fulfilled on time. Customer enquiries and returns need to be handled. As volumes increase, manual processes can become difficult to sustain.
Wu said operational capabilities will become more important as the market matures.
“Fast and reliable delivery, responsive customer service and a seamless shopping experience are increasingly becoming the standard that customers expect,” he said.
Technology can help, but it also creates a new requirement. Sellers need to know how to use data and automation effectively.
The aim is not simply to automate tasks. It is to make better decisions on areas such as inventory, pricing, marketing and demand.
Sales Growth Does Not Always Mean Business Growth
This is where the economics of e-commerce become more important. Merchants have to account for platform commissions and fees alongside advertising, discounts, fulfilment, packaging, returns and customer acquisition costs.
A seller can increase sales and still struggle to make money if these costs rise faster than revenue.
For newcomers with limited capital, that leaves less room for mistakes. Wu’s view is that sustainable growth requires businesses to focus on how they operate, not just how much they sell.
“The businesses that succeed over the long term are those that continuously improve how they operate, respond to changing customer expectations and make better use of technology,” he said.
That includes using data to understand which products are performing, where costs are rising and which marketing efforts are generating returns.
It also requires businesses to keep developing their digital capabilities as the market changes.
Technology Is Becoming Part of the Competition
The next challenge may come from the pace at which businesses adopt new technology.
Wu expects AI to play a larger role in e-commerce, particularly in demand forecasting, inventory management, marketing and customer service.
He said these tools could give smaller businesses access to capabilities that were once more common among larger companies.
But access to technology is only part of the equation. Businesses still need to know where it can add value and whether it is improving their operations.
For a new seller, that creates another challenge. Keeping up with competitors may require learning new tools while also running the day-to-day business.
The faster technology becomes part of normal e-commerce operations, the more difficult it may be for businesses that rely heavily on manual processes to compete on cost and speed.
Trust Takes Time To Build
New sellers also face the problem of credibility. Customers have more choice and can quickly compare prices, reviews and service records. A new business therefore has to establish trust while competing against sellers that may already have a large base of repeat customers.
Wu said trust will remain central as digital commerce grows. “Trust isn’t simply a compliance requirement — it’s what enables businesses and the wider digital economy to thrive,” he said.
For sellers, that means getting the basics right: accurate product information, reliable fulfilment, responsive customer service and proper after-sales support.
Staying In The Market Is The Real Test
Malaysia’s e-commerce market has reached a point where access to customers is no longer the main challenge.
The challenge is building a business that can compete once those customers have more choices. New sellers have access to digital payments, marketing tools, fulfilment services, data and increasingly AI. But so do their competitors.
That raises the bar for everyone entering the market. For newcomers, the focus therefore has to extend beyond getting online.
They need to understand their margins, manage operations, build customer trust and keep adapting as consumer behaviour and technology change.
E-commerce may have lowered the barrier to entry. It has not lowered the demands of staying in business.
