Malaysian manufacturers and sellers 2nd highest in the region developing cross border e-commerce

KUALA LUMPUR (Oct 19): A survey by Amazon Global Selling revealed that Malaysia has more manufacturers and sellers developing cross-border e-commerce with 14.09% of respondents starting their journey of going global, the second-highest percentage among Southeast Asian countries.

Head of Amazon Global Selling, Southeast Asia, Bernard Tay said Malaysian e-commerce is still a relatively new but rapidly developing sector.

He said the surge in demand for online shopping under the lockdown begets the digital model of doing business as part of the new normal, alongside business innovation and technological adoption.

“Based on our latest report, Malaysian micro, small and medium enterprises (MSMEs) want to develop more robust capabilities for cross-border e-commerce from understanding business models and international logistics to cross-border operation, regulation and foreign competition,” he said in a statement.

According to the survey, customers’ shopping behaviour is shifting to online quickly and cross-border e-commerce, which optimises the process of trade, could help sellers reach global customers directly and represented a global opportunity.

It said research showed that overall cross-border business-to-customer (B2C) e-commerce market value is forecasted to surge by 30% from 2019 to 2026.

The survey said amidst the opportunities for growth through e-commerce, local MSMEs cited difficulty in managing cross-border supply chains and logistics, high operation costs and the intense competition with international sellers on Amazon as among the critical barriers.

“Difficultly in managing cross-border supply chains and logistics is the most common challenge faced by Malaysia MSMEs surveyed with 47% citing it as their top barrier,” it said.

It said Amazon Global Selling encouraged sellers to explore the opportunity to build a global business.

“Amazon is also offering innovative programs and tools to help sellers accelerate this digital transformation,” it said.

It said Amazon has been investing over the years to build world-class fulfilment and delivery network and fulfilment by Amazon could help MSMEs store their products in Amazon’s fulfilment centres and Amazon would pick, pack, ship and provide customer service for these products.

Therefore, Tay said Amazon’s first-ever seller boot camp is a timely opportunity for small enterprises to identify the current gaps in their operations and arm themselves with the knowledge, resources and connections to sustainably expand their business globally and maximise their potential with Amazon.

The boot camp is a virtual event hosted to equip sellers with the resources needed to overcome cross-border e-commerce barriers and has attracted over 1,000 MSMEs registration.

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