Malaysia’s E-Commerce Sellers Call for Enhanced Support to Sustain Growth

Juda Kanaprach, Co-Founder and Chief Commercial Officer at Milieu Insight

31 October 2025

KUALA LUMPUR: Malaysian e-commerce sellers are calling for stronger platform support, clearer regulations, and improved digital tools to maintain growth in an increasingly competitive market, according to a recent study by Milieu Insight. The survey, which involved 300 online sellers, reveals that local operators are prioritising sustainable expansion and practical enablement over aggressive scaling. Sellers emphasised the importance of collaboration, platform accountability, and reliable logistics as key factors in strengthening Malaysia’s e-commerce ecosystem.

The study indicates that nearly four in ten sellers have more than three years of experience, reflecting a maturing online marketplace. Almost half of the respondents are aged between 25 and 34, highlighting a young yet seasoned workforce driving digital entrepreneurship. Women constitute 55% of the seller base, underscoring the role of e-commerce in expanding opportunities for female entrepreneurs. Most sellers handle fewer than 100 orders per month, focusing on consistency, trust, and customer satisfaction rather than volume-based competition.

Juda Kanaprach, Co-Founder and Chief Commercial Officer at Milieu Insight, stated, “When the ecosystem strengthens, consumers benefit first. Better logistics mean faster, more reliable deliveries. Stronger platform accountability ensures safer transactions and authentic products. Ultimately, what sellers are asking for leads to a better experience for every Malaysian buyer.”

The report also highlights emerging operational challenges. Rising logistics costs, increasing overseas competition, and shifting consumer expectations remain top concerns for local sellers. Thirty-nine per cent cited logistics costs as a significant pressure point, while 42% identified overseas competition, and 40% pointed to evolving buyer demands.

Despite these hurdles, 44% of respondents are optimistic about their business prospects, expecting stable or improved performance this year. The study notes that sellers are willing to invest in digital tools and training, but only when the benefits are clear and measurable.

A notable 72% of sellers believe that access to digital tools is essential for competitiveness, while 67% see regulatory clarity and financial support as critical to their operations. Logistics remains the most vital element for confidence, with 78% emphasising delivery reliability as crucial for sustainable growth. Many respondents expressed concerns over inconsistent courier performance and fragmented platform support, which erodes trust.

While e-commerce platforms play a vital role in the seller experience, their effectiveness remains mixed. Only 43% of sellers utilise platform promotional tools, and 39% depend on platform marketing features. Sellers are calling for greater visibility, faster delivery systems, and affordable financing options. Although 65% accept platform fees, many seek clearer explanations and performance-based outcomes.

Juda added, “Our findings suggest that as platforms raise their standards, consumers will notice fewer failed deliveries, better product tracking, and stronger buyer protection. These are the foundations of trust in digital commerce.”

Logistics continues to be both a cornerstone and a risk for local e-commerce. Four in ten sellers reported losses due to failed deliveries, refunds, or damaged parcels, illustrating the financial strain caused by unreliable logistics partners. International competition is also intensifying, with 57% of sellers acknowledging that overseas rivals directly impact their business. Moreover, 75% believe stronger local support is necessary to remain competitive.

Respondents urged platforms and policymakers to enhance local visibility, create fairer incentives, and improve infrastructure to enable Malaysian sellers to compete on quality and authenticity.

The Milieu Insight study identified several key areas for strengthening Malaysia’s e-commerce landscape: demonstrating value beyond price, advancing digital readiness through tools and training, improving logistics reliability and accountability, championing local sellers while safeguarding buyer protection, and fostering stronger partnerships among platforms, sellers, and policymakers.

Malaysian sellers seek collaborative efforts and shared responsibility to drive the next phase of e-commerce growth. Their outlook remains pragmatic, rooted in the need for smarter tools, clearer policies, and sustainable investment to support long-term success.