Imagine running an online business where order volumes surge dramatically, yet year-end calculations reveal stagnant—or even declining—profits. This isn't a hypothetical scenario but the harsh reality facing small and medium-sized e-commerce sellers across Malaysia.
While e-commerce now contributes a substantial 23.4% to Malaysia's GDP, escalating operational costs are systematically eroding profit margins for digital merchants. Platform commissions, employee wages, logistics fees, and utility expenses collectively chip away at already narrow profitability.
Low Wei Yan, Secretary-General of the Malaysian Micro Enterprise Association, attributes this cost inflation to rising consumer expectations. "Today's shoppers demand more than just low prices," he explains. "They prioritize response speed, service quality, and fulfillment reliability. Any system failures, delivery delays, or post-sale issues can trigger refunds, platform penalties, or permanent customer loss."
The situation creates a vicious cycle: heightened expectations force sellers to invest more resources, further driving up costs and compounding financial pressures. Breaking this pattern has become an urgent challenge for Malaysia's e-commerce micro-enterprises.
Low proposes a multi-stakeholder solution: "E-commerce platforms should enhance seller support through comprehensive onboarding guidance, practical analytics tools, and professional operational coaching to improve efficiency and mitigate risks." He simultaneously calls for government action to accelerate infrastructure development and streamline compliance procedures, creating a more favorable ecosystem for digital commerce.
Industry observers note that only through coordinated efforts between platforms, policymakers, and merchants can Malaysia build a sustainable e-commerce environment where small businesses truly benefit from digital growth—rather than suffocating under mounting operational burdens.