PETALING JAYA: E-commerce has become a saviour for retailers reeling from the industry’s worst performance in more than 30 years.
Online sales platforms such as Lazada and Shopee have reported large increases in the number of retailers signing up to sell their items online.
The switch to e-commerce is inevitable as sales are down more than 90% and many stores are on the verge of pulling down their shutters for good.
Non-essential retail sales outlets have been shut for the most part of the past 18 months as the nation grapples with an invisible enemy.
According to the Malaysian Retail Chain Association, the sale of non-essential items in Selangor and Kuala Lumpur has ground to a halt.
Its president Shirley Tay told theSun that many retail outlets have been reporting zero sales.
“Even those dealing in essential items are not spared.”
With many brick and mortar stores not allowed to open for business, retailers have turned to e-commerce to survive but according to Tay, the increase in online sales has barely made up for the losses.
“Competition among online vendors is intense, and retailers are expected to offer huge discounts on their goods,”
A recent survey by the Small and Medium Enterprises (SME) Association of Malaysia revealed that only 8.6% of SME had not been affected and the remaining 91.4% had suffered losses ranging from 25% to 100%.
Many brick and mortar retailers have, in fact, moved their businesses online to woo armchair shoppers.
Lazada chief operating officer Darren Rajaratnam said “tens of thousands” of local micro, small and medium enterprises (MSMEs) had gone digital within a month before the launch of its mid-year sales from July 5 to 7.
Rajaratnam added shoppers have also helped to spur the economic recovery by making more purchases online, with the volume of sales triple that of the same event last year.
“Our top retailer breached the RM1 million mark during this sale alone.”
Shopee saw more than 100,000 MSME sign up under a public-private partnership that began in March.
The project was a collaboration between Shopee and various ministries, government agencies, associations and state governments.
Shopee senior manager of business development Zed Li said how well each retailer does online varies, depending on the product for sale, the category as well as the commitment of the seller.
Li gave the example of a kek lapis (layer cake) business that was a success story. “The retailer saw a 250% increase in demand for her kek lapis.”
He added there is a misconception among e-commerce sellers that the job is done as soon as they set up an online store on its platform.
“The various processes must be reviewed and where necessary, improved as well. To help sellers, Shopee conducts free workshops. These special classes cater to new sellers to guide them on everything from store set-up and sales to marketing and operations,” he added.
Source: https://www.thesundaily.my/local/e-commerce-becomes-back-up-plan-for-retailers-HX8066999