Key Trends Shaping Malaysia’s E-Commerce Market

Latest update: November 2024

Malaysia’s e-commerce market is booming, driven by strong domestic sales and increasing consumer confidence in online shopping. This article delves into the current state of e-commerce in Malaysia, uncovering key trends, growth drivers, and consumer preferences. The information is sourced from our Asia-Pacific E-Commerce Data Library, and is enriched with external references curated by the PCMI team.

You can explore this content as an infographic report, available for download below.

Current State of E-commerce in Malaysia

With 88% of the population banked, Malaysia enjoys high digital payment adoption.¹ Domestic sales account for 70% of e-commerce activity,² highlighting strong local demand for online retail.

Profile of the Malaysian Online Shopper

Malaysia E-Commerce Payment Methods and Devices

Malaysia’s e-commerce market is defined by diverse payment options and a strong preference for mobile shopping. According to PCMI’s E-commerce Data Library, the primary payment methods for e-commerce in Malaysia, by share of volume, are:

1. Credit card — 30%
2. Digital wallet — 25%
3. Debit card — 10%
4. Bank transfers — 10%
5. Cash on delivery — 10%
6. Buy Now Pay Later (BNPL) — 8%
7. Cash payments — 5%
8. Other —2%

As for devices used for purchasing online, PCMI has observed that:

• 65% of e-commerce volume in Malaysia comes from purchases on mobile devices
• 35% of e-commerce volume in Malaysia comes from desktop

Top-Selling Categories and Leading Online Stores in Malaysia

Based on their share of overall sales, the following product categories rank as the most popular among Malaysian online shoppers:⁶

1. Electronics (31%)
2. Fashion (30%)
3. Toys & hobbies (12%)
4. Personal care (12%)

As for the top online stores in Malaysia, based on traffic share (data from Similar Web), the ranking is as follows:

1. Shopee (84 million)
2. Lazada (20 million)
3. Samsung (5 million)
4. Carousell (4.7 million)

Key Insights into the Malaysian E-commerce Market

Lastly, here are some key insights about e-commerce in Malaysia according to our report:

Next Step:

The PCMI E-Commerce Data Library

While the data shared here can be helpful, both payments companies and ecommerce companies may benefit from a deeper dive into Malaysian e-commerce data, which they can obtain by acquiring the PCMI E-commerce Data Library for Asia Pacific.

The Library covers not only Malaysia but also 12 other countries in Asia Pacific, featuring e-commerce market data such as:

• Historical volume of Malaysia’s e-commerce market

• Projections of Malaysia’s e-commerce market volume for 2024-2027

• Breakdowns by merchant vertical for e-commerce in Malaysia: retail, travel, ride-hailing, digital goods and services like streaming

• Data on both cross-border and domestic e-commerce purchases in Malaysia for 2024 and projections for 2025 and beyond

• Breakdowns and projections of payment methods used in Malaysia’s e-commerce (international/domestic credit cards, Buy Now Pay Later, digital wallets, and others)

And much more.

Other key advantages make the PCMI E-commerce Data Library for Asia Pacific a uniquely powerful tool for companies that seek a fuller understanding of e-commerce in the region:

• It’s customizable to client needs: you can obtain additional data you need for your company’s specific business concerns, beyond what the Library offers

• It’s budget-friendly: while detailed reports are available for 12+ countries, you can just buy data on just 1 or save money by purchasing a country bundle

• It includes personalized guidance: every purchase of the Library entitles you to a free 1-hour consultation about the data with one of PCMI’s industry experts

• It offers unlimited sharing: there is no single-user license with the PCMI E-commerce Data Library for Asia Pacific, so you can share it freely with your organization

Sources:

1. The GlobalEconomy.com ↩︎
2. PCMI E-Commerce Data Library ↩︎
3. “E-commerce in Malaysia: Trends and Phenomenal Growth 2024,” Incorp ↩︎
4. “Malaysia’s E-commerce Revolution: A Statistical Analysis of Consumer Behavior and Opportunities,” WeCorporate ↩︎
5. “Malaysia eCommerce Statistics and Trends in 2024,” Commission Factory, January 2023 ↩︎
6. “Malaysia eCommerce Statistics and Trends in 2024,” Commission Factory, January 2023 ↩︎
7. PCMI E-Commerce Data Library ↩︎
8. PCMI E-Commerce Data Library ↩︎
9. PCMI E-Commerce Data Library ↩︎
10. “Malaysia’s Social Commerce Market Anticipated to Surge to 1.73 billion in 2024,” Aftership ↩︎
11. “Malaysian Consumer Shopping Behaviour 2024: Habits & Attitude,” Vodus, May 2024 ↩︎
12. “Malaysian Consumer Shopping Behaviour 2024: Habits & Attitude,” Vodus, May 2024 ↩︎