THE ADAPTATION OF E-COMMERCE IN MALAYSIA
The business and
commerce in today’s world have become more challenging yet exciting with the
advancement in information technology and communication. Today and in the near
future, the technology that surrounds us is undergoing a substantial, rapid and
universal change that gives significant impact to the world we live in and our
daily lifestyle. This development is also visible through the use of e-commerce
in Malaysian business, which has changed the business approach used by small
and large companies.
E-commerce that
is also better known as a method to sell products and services through network
orInternet is acclaimed to emerge as an important business tool in the 21st
century. E-commerce is also frequently described as an opportunity tool for
large companies and small medium enterprises (SMEs) to penetrate the global
market, thus providing the most appealing way to publicly widespread the
products and services. It is expected that SME will then be able to capture the
global market, meet the international consumer’s need and requirement besides
gaining opportunities to compete with the big, global player companies.
Although
operated in small scale, SMEs play crucial roles in the economic development
and providing job opportunity. In Malaysia, SMEs are important contributors to
the national economic growth and in achieving the objective to become an
industrial nation by the year 2020. Until December 2005, there are 518,996 SMEs
in Malaysia which makes up the 99.2 percent of overall registered companies in
Malaysia. Though Malaysia SMEs performances have increased over the years, yet
there are still a few vital things that required attention particularly in term
of access to export market and technological capability of SMEs business. As
such, Malaysian the e-commerce industry, these SMEs are required to be well
prepared from the aspect of business capital, sophisticated ICT facility, and
world standard of products and services in order to compete with bigger
companies and the global player enterprises. Although e-commerce benefits are
acknowledged by the SMEs, it is not well implemented. This is influenced by the
low demand over online products as well as the skeptical perceptions on the
Internet security. Malaysian SMEs also believe that market penetration rate is
low by using e-commerce rather than the more established and common traditional
businessmedium. The involvement of Malaysian Bumiputera’s SMEs in e-commerce is
still in the preliminary stage and less encouraging with less then 10 percent
of SMEs being researched really put e-commerce in its best usage.
THE BARRIERS AFFECTING THE IMPLEMENTATION OF E-COMMERCE TECHNOLOGY IN MALAYSIAN SMALL AND MEDIUM SIZE
ENTERPRISE (SMEs)
CULTURAL BARRIERS
- Lack of experience and weak familiarity with e-commerce applications.
- Lack of knowledge of E-Commerce - Due to a lack of knowledge of E-commerce technologies, there is an internal resistance to change, and scepticism of the benefits of e-commerce among SMEs, although there are signs that this is changing.
- Low levels of understanding e-commerce application installed with English language.
- Internet users are not willing to study and educate themselves about e-commerce technology.
- Low perceptions to the benefits of buying products online, Malaysian shoppers continued to buy goods from physical stores and use cash payments in their transactions for because of low perception to the advantages of e-commerce.
SECURITY BARRIERS
- Lack of confidence and trust in various electronic transactions with international marketplace was identified as the main security barrier to the e-commerce. SMEs avoid doing business with international suppliers and buyers, due to different reasons based on weak confidence in the security of international financial transactions, the lack of confidence is mainly because of weak knowledge about the new technologies.
- Poor experience and knowledge about the different ways of payments utilized in most of e-commerce website, the study found that the security issues associated with unsecure payment ways was the major cause for small number of online buyers in Malaysia comparing to by users to developing countries in Europe and USA.
- Many of the owners and top management in SMEs in Malaysia do not have sufficient technical experience to use e-commerce and need for professional training courses, for this reason it is difficult to convince the managers in Malaysian companies to adopt the new technology and depend on it for their local and international trade.
GOVERNMENT BARRIERS
- Lack of government regulations to conducting online trade and buying doing business online through electronic ways raises many legal problems, which includes the needs to legalize electronic contracts by the government and regulate a specific law and regulations to solve financial disputes between buyers and sellers as in the normal lawsuit cases.
- The absence of legal jurisdiction of e-commerce transactions would produce a high reluctance by interested buyers to use electronic commerce as another way for conducting their business and deals.
- The Malaysian government did not have full copyright protection for digital content as well as intellectual property rights. The privacy issues increase rapidly in recent years; this matter arise many legal disputes and make international electronic sellers stop their plans to open new business in Malaysia and conduct e-commerce successfully.
TELECOM INFRASTRUCTURE BARRIERS
- In some areas in Malaysia there was a weak information Infrastructure and big difficulties to access the internet, or access with high cost and low quality, however buyer in rural areas will not know about the new technology and the number of new buyers will decrease in Malaysia.
- The challenge of cost is another issue facing SMEs in Malaysia. Some SMEs complains that the implementing of e-commerce applications and replace their old systems for doing business is costly and represents a strong barriers to adopt e-commerce. Many CEOs do not wish to risk their business by changing to a new technology at high cost.
- Most of SMEs have limited funds, and a shortage of experts in information technology, and without suitable infrastructure capable to setup the new electronic solution to their business.
TOP 10 ONLINE SHOPPING WEBSITE IN MALAYSIA
Popular Malaysian online shopping site for shoes, bags,
clothes and accessories.
Launched in 2011, Zalora is a relatively new online store in
Malaysia, but it has already become extremely popular with Malaysians. Although
Zalora serves over seven countries, its shopping website for Malaysia is its
most popular one. Zalora is fast becoming a household name in this country. The
website is very easy to navigate, and has clear tabs for men’s, women’s and
kids’ fashion.
As an online retailer of clothes and shoes, Zalora offers
many brands. The website also updates their catalogue regularly to bring the
newest seasonal collections to Malaysia as soon as they are launched. Shoppers
can find products from top international and local brands, like Nike, Adidas,
Tom Abang Saufi, Jovian, and Coach. With over 50,000 products from more than
300 brands, you have many choices. Apart from clothes and footwear, this online
shopping website also offers bags, cosmetics, accessories and perfumes.
You can also find discounts and bargains all year round.
Their items on sale, new arrival items, and items that cost less than RM100 are
categorized neatly, making them very easy to find. Not only does Zalora offer
free shipping, but they also offer very fast shipping and a 30-day free return
policy. The website also offers customers various payment options.
2. Lazada Malaysia
Popular Malaysian online shopping site, offering DSLR/SLR
Cameras, consumer electronics, mobiles & tablets, home appliances, fashion,
health & beauty.
Started by the same company that owns Zalora, Lazada sets
itself apart by being the premier online destination for electronic goods in
Malaysia. As this online shopping website focuses mainly on electronic goods,
all the gadgets on offer are divided into specific categories like Mobiles
& Tablets, Consumer Electronics, Cameras, Computers & Laptops, and so
on. With all these great gadgets to choose from, you will hardly notice that
their clothing section is quite limited.
Apart from electronic gadgets, Lazada is also a great website
if you’re looking for books, cosmetics, bags, and watches. You can find
products from almost any well-known tech brand here: Apple, Samsung,
BlackBerry, Canon, Sony, HTC, Nokia, and Lenovo are just a few of the brands
available. They offer discounts on almost all their products – even on those
that are brand new. For some products, Lazada offers discounts of over 80%!
These can be found under their “Mega Deals” section.
You can rest assured that all the products are original; they
can also be returned within 14 days for a full refund. In addition to offering
free shipping to all locations within Malaysia, Lazada is also one of the few
online shopping websites in Malaysia that offers express delivery options to
customers. All of their payment options are extremely secure.
Lazada Payment Options:
Cash on delivery
Credit Card (AmBank, Bank Islam, CIMB Bank, Hong Leong,
Maybank, Public Bank, RHB)
Online Banking (direct debit or bank transfer)
Instalment (this essentially let’s you use a credit card to
pay for the puchase over 6 to 12 month period
Popular malaysian online shopping and auction site, offering
handphones, computers, cameras, fashion accessories and more. As you can see
from its Alexa rank, Lelong is one of the most visited websites in Malaysia. It
is the Malaysian version of eBay, and is an online auction and shopping
website. As its name suggests, Lelong offers products at low prices and has
over 10,000 active sellers. Although their website appears cluttered and
confusing, on closer inspection you will see that all their items are carefully
sorted into various distinct categories.
Unlike some other online shopping websites, you can find
practically anything on Lelong.com.my – anything from computer accessories to
houses. This website is very popular among Malaysians for cosmetics, clothing,
and electronic gadgets. The site offers a search engine to help you find what
you want; it’s right at the top of the home page.
Offers and special items are categorized as Quick Grabs, Hot
Items, Sales, Auctions, Hot Reserves, and so on, to ensure that shoppers never
miss an exciting offer. The site offers products from well-known international
and local brands at extremely discounted rates. Some of the brands that you can
find on the website include Mango, Nike, HTC, Apple and Samsung. Lelong is also
a great place for vendors, as almost 70% of all items posted end up being sold
– this is why you can find so many brands on Lelong. Additionally, this online
shopping website offers tutorials to assist you in buying, selling, bidding on
items, becoming a member, and paying for purchases. Lelong Payment Options are
depending on vendor. Lelong Return Policy is depends on vendor.
Major Malaysian online shopping site for cameras.
ShaShinKi is popular amongst professional and amateur
photographers in Malaysia. In the Japanese language, the word ShaShinKi
translates to ‘Camera,’ which is apt. This website sells nothing but cameras
and related accessories; it is the only such website in Malaysia. Although it
offers only camera and camera accessories for sale, it is one of the most
visited websites in Malaysia. Launched in 2005, ShaShinKi has been featured in
many famous magazines, blogs and newspapers, and is an official dealer for
Canon and Nikon in Malaysia.
While the site looks a bit dated, it is fairly simple to use.
All the important categories and options are displayed prominently at the top
or left-hand side of the home page. One of the reasons ShaShinKi is so popular
is because it also offers second-hand cameras and camera equipment for sale.
Despite the low prices, all their products are original, and they guarantee
that all products will be delivered in good condition. They stock more than
10,000 products and you can find almost any camera or piece of camera equipment
on ShaShinKi. This includes chargers, lenses, batteries, tripods, cleaning
tools, memory cards, and much more.
ShaShinKi offers products from some of the most famous brands
in the world like Canon, Leica, Kodak, Nissin and Sanyo. You can even exchange
your old camera for a newer model and get your camera repaired by experts on
ShaShinki.com.
ShaShinKi Payment Options:
Cash on delivery
Online Banking (Maybank, Public Bank, CIMB)
Cash deposit
Cheque
Paypal
ShaShinKi Return Policy: Depends on product. Essentially, the
buyer must request and get approval from ShaShinKi within 7 days of the
shipping date.
Popular Malaysian online shopping site for women’s clothes
shoes and accessories. Just like ShaShinKi, Fashion Valet is another
specialized online shopping website. True to its name, Fashion Valet focuses
only on fashion. One of the reasons Fashion Valet is so popular is because it
has really committed to promoting local designers – the website offers clothing
and accessories from a wide variety of local and Asian fashion designers.
Launched in 2010, this website offers a wide variety of
accessories, handbags, shoes, and ready-to-wear apparel. Fashion Valet also
offers the latest pieces from local designers, and great bargains on many of
their products. Loyal customers are awarded with store credits on every
purchase that they make on Fashion Valet, which can be used to make the next
purchase.
This online shopping website also caters to plus size women by
offering apparel in larger sizes. The website is clean and easy on the eyes,
with all the main categories displayed at the top of the home page. They also
deliver products anywhere in the world. However, shipping is free only for
deliveries in Malaysia; customers can even opt to pick up their purchases
themselves.
Fashion Valet Payment Options:
Direct Online Bank Transfer
iPay88 Gateway (this accepts credit card, internet banking,
and electric ewallet)
PayPal
Fashion Valet Return Policy: 30 days from arrival. (Items
must be be in original condition – not washed, worn, or altered. Refunds are
given in the form of store credit. More
details on Fashion Valet’s return policy can be found here.)
Malaysian Currency Accepted: Yes.
Fashion Valet Shipping Time and Charges:
Free local delivery in Malaysia.
Shipping takes 1 to 2 business days in Malaysia – delivered
via PosLaju.
International delivery available, but charges apply.
More details can be found on their website
Great online shopping site for men and women’s fashion. Free
shipping to Malaysia.
ASOS is one of the UK’s largest online fashion websites,
carrying over 850 brands. ASOS has an attractive website, comprised of large,
visually alluring pictures and a clean user interface. You can search for
products through the website’s search engine, or browse by women’s or men’s
products, fashion trends, or collections. ASOS also offers a marketplace where
you can buy and sell pre-owned fashion wear.
ASOS delivers worldwide, so yes, that includes Malaysia. And
here’s even better news: if you accept the standard delivery option, shipping
is free. If you need a quicker option, such as delivery within 5 days, then
there is notable fee.
ASOS Payment Options:
Credit Card (Visa, MasterCard, American Express, Visa
Electron, Laser, Maestro, Delta, Solo, Deal, DK Visa)
Paypal
Malaysian Currency Payment Option? No.
ASOS Shipping:
Standard Shipping: 9-28 days, free of charge.
Express Shipping: 4-10 days, GBP 20 (~RM 95).
Visit the ASOS website.
Great online shopping site for women’s fashion, offering
dresses, handbags, shoes, jeans, tops and more. Free shipping to Malaysia.
Shopbop launched in 2000 as an online shopping boutique site.
It is now one of the leading international shopping sites for women’s fashion.
This websites features hundreds of designer apparel and accessories to suite
various styles and occasions for women. The website was acquired by Amazon in
2006. The website has a fresh design and is easy to navigate. And it provides
free shipping to Malaysia with orders priced over US$10 (RM 32)!
Shopbop Payment Options: Credit Card (Visa, Master Card,
American Express, JCB, Diners Club, and Discover
Malaysian Currency Payment Option? No (Credit Card will
convert currency)
Shopbop Shipping Cost and Delivery Time: Free shipping to
Malaysia
Great online shopping site for men’s fashion, offering more
than 125 designer brands and free shipping to Malaysia.
East Dane was launched in 2013 as the brother site to
Shopbop.com. The number of designer brands isn’t as large as Shopbop, but there
is still a large selection, and it continues to grow. This is also a subsidiary
of Amazon.com. Also, the website offers
fre shipping to Malaysia!
ShopBop Payment Options: Credit Card (Visa, Master Card,
American Express, JCB, Diners Club, and Discover
Malaysian Currency Payment Option? No (Credit Card will
convert currency)
ShopBop Shipping Cost and Delivery Time: Free shipping to
Malaysia
One of largest online shopping sites in the world. Unfortunately, this site delivers only some products to Malaysia though.
Amazon.com is the largest online shopping website in the world. Luckily for Malaysians, they ship their products to Malaysia too. It is also one of the oldest online retailers. The website was launched in 1995, and originally it only sold books. Now customers can find almost anything on Amazon, including jewellery, CDs, electronic gadgets, toys and clothing. However, some of these electronic devices cannot be delivered to Malaysia.
Unfortunately, not all products on Amazon will ship internationally. Malaysians can find out if an item will be shipped here by looking at the product detail page. If you see a note saying “This item is also available for shipping to select countries outside the U.S.,” then it may be shipped to Malaysia.
Additionally, Amazon makes this statement on their website regarding the types of products that can’t be shipped internationally: “Buyers outside the U.S. cannot purchase the following types of items from sellers: video games, toy and baby items, electronics, cameras and photo items, tools and hardware, kitchenware and housewares, sporting goods and outdoor equipment, software, and computers.”
International online book site shipping all books free of
charge, to over 100 countries, including Malaysia.
Book Depository is an online book store many people haven’t
heard of in Malaysia, but it’s a gem. This online book store is based in the UK
but delivers internationally, including Malaysia. Even better is the fact the
site offers free international delivery.
Book Depository claims to offer over nine million titles.
When you search the site, you’ll likely believe that figure, given the site’s
robust book selection. You can search
the website by keywords, best sellers, ‘fast movers’, ‘book of the week’ and
more.
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