As the Raya peak season event approaches, this year many traditional bazaar traders find themselves grappling with declining sales and are taking the blame towards online shopping. The emergence of e-commerce has drastically altered the shopping habits of consumers, with more and more people opting for the convenience of online shopping over the traditional in-person experience.
The Rise of Online Shopping During Peak Season
With the ease and reliability of e-commerce platforms, Malaysian consumers have embraced the online shopping experience, especially during peak seasons. The allure of exclusive deals and the convenience of shopping from the comfort of home have drawn shoppers away from physical marketplaces, posing a challenge for traditional vendors.
Marketplace Policies and Seller Struggles
The competition among e-commerce platforms has led to the introduction of customer-friendly policies, like extended return periods, aimed at attracting more shoppers. However, these policies come with their own set of challenges for sellers, including higher return rates and increased commission fees. For many online sellers, this year has been particularly tough as they navigate through rising costs and shrinking profits.
Analyzing Platform Performance
Taking a closer look at past data reveals interesting insights into how different platforms have fared during peak seasons. While industry leader Shopee faced unexpected setbacks with a decline in sales which came about RM1.7b, social media platform TikTok exceeded expectations surpassing RM1b, which captured a significant share of the market. This shift highlights the changing preferences of Malaysian consumers, who are increasingly exploring alternative e-commerce channels.
Understanding Customer Priorities
Surprisingly, the length of the return policy doesn’t seem to be the deciding factor for consumers when choosing where to shop. Despite offering change of mind without reason compared to competitors, Shopee’s decline in sales suggests that other factors play a more significant role in shaping consumer decisions. This emphasizes the need for businesses to adapt to changing consumer preferences and market dynamics.
Strategic Adaptations and Looking Ahead:
In the face of evolving consumer behavior, strategic adaptations are essential for businesses to stay competitive. Lazada’s proactive approach, characterized by quick responses to market changes and strategic improvements, positions it as a strong contender in the ever-evolving e-commerce landscape.
Last but not least this year winter might come early, hope you guys are ready to brace it, see you next month.
This report is powered by robust data analytics from two industry leaders: Mobduos for Shopee and Kalodata for TikTok. But before we dive into the exciting findings, a word of caution: while our data provides valuable insights, always remember that there may be slight variations from real-time statistics. Get a free trial to Shopee and Tiktok Bigdata and let us know if you would like a promo code to purchase when you find them essential .
