E-commerce In Malaysia – Trends And Opportunities For 2025

Table of Contents

Reading Time: 12 minutes
graph showing e-commerce in malaysia market growth between 2024-2029

E-commerce in Malaysia is growing rapidly, with a market value of US $10.72 billion. By 2029, 18.8 million Malaysian consumers will rely on e-commerce for shopping. The average revenue generated per user is projected to reach US $798.90 in 2025.

This massive growth can be attributed to high internet penetration, rising disposable incomes, and rapid urbanization. The government has also played a key role in the rise of e-commerce. Initiatives like the National E-commerce Strategic Roadmap have encouraged local and international sellers to set up businesses. Digital free trade zones have made cross-border transactions easier. For e-commerce sellers, there’s no better time than now to set shop in Malaysia! 

Today, more than 29.5 million Malaysians access the internet. As an e-commerce seller in Malaysia, your brand needs to catch their attention to stand out. What are the evolving e-commerce trends that you can factor in for your 2025 business plan? Here’s a detailed guide to help you double your wins, transform selling, and gain a competitive advantage. 

E-commerce In Malaysia: 10 Trends to look out for in 2025

Malaysia is currently experiencing an e-commerce boom that’s changing how consumers shop. To stay ahead of the competition, retailers need to understand what shoppers are looking for. By staying informed about emerging trends, retailers can align their strategies with market demands. Let’s take a look at the online shopping trends in Malaysia that will shape consumer behavior in 2025.

1. Cross-Border Commerce: Driving 40% of Malaysia’s Online Purchases

Image depicting why Malaysians choose to buy from international sellers

Malaysia is a multicultural nation with Islamic, Chinese, and Indian communities. As a result, there are diverse consumer preferences and a high demand for international products. In fact, the market share of cross-border commerce is equal to that of domestic e-commerce. Across SE Asia, Singapore and Malaysia make up 50% of all cross-border transactions. Shoppers are increasingly looking to buy products from China, the USA, South Korea, Japan, and Singapore. Popular items include electronics, fashion, and beauty products. 

The government has played a significant role in driving cross-border commerce in 2025. For instance, Malaysia has a de minimis rate of MYR500—products valued below MYR500 won’t be charged import taxes. This makes it easy for international retailers to ship products into the country. Initiatives like the NESR have also encouraged retailers to increase imports and exports. 

61% of cross-border e-commerce in Malaysia is from China.

Locad offers IOR, SOR, and freight forwarding services to simplify cross-border operations and help you grow your business across Malaysia and China!

2. Mobile commerce will drive Malaysia’s e-commerce growth in 2025

Graph showing smartphone adoption rate in Malaysia between 2022-2030

Malaysia might have a population of 34.13 million, but the number of mobile connections is 44.05 million. In 2023, 54.7% of all e-commerce transactions took place via mobile. The most popular m-commerce channel was found to be apps, which made up 64% of the transactions. Popular platforms like Lazada have also taken a mobile-first approach. Their mobile app remains at the forefront of e-commerce in Malaysia, with an adoption rate of 84%.  Items purchased most frequently via mobile are electronics, fashion accessories, food, beverage, and beauty products. Experts predict that mobile commerce will continue its upward trajectory in 2025, and e-commerce sellers should make mobile optimization a key priority. 

One platform for all your mobile orders!

Track sales from apps, social media, and messenger channels. Simplify your logistics and enhance your e-commerce success with Locad!​​

3. Users will turn to social commerce to discover new products

Statistics depicting levels of social media usage in Malaysia

Malaysia’s social commerce sector generated revenue of US $400 million in 2023. By 2028, this number is expected to reach US $976 million. Platforms like TikTok Shop and Facebook marketplace have played a key role in this sector’s growth. In fact, 23.3% of users across Malaysia use social media to discover new brands and companies. Many are also eager to find new content and videos from their favorite brands.

In 2023, 32% of the total digital marketing spend was allocated to social media, a figure that will increase further in 2025. The rise of influencers will also be key to capturing a larger customer base as social media continues to dominate consumer engagement. Approximately 75% of Malaysian customers depend on influencers for guidance regarding product ideas and information.  For e-commerce businesses aiming to stay competitive, integrating influencer collaborations into their strategies will become essential.

In 2024, Tiktok 93.4% of internet users in Malaysia were on TikTok.

Locad’s integration with TikTok Shop helps you optimize order fulfillment and accelerate your sales growth.

4. Malaysia is shifting from omnichannel commerce to seamless commerce

Statistics depicting e-commerce in malaysia - where do consumers prefer to shop?

Omnichannel may have been the popular buzzword in the past year, but seamless commerce is set to rise in 2025. This represents brands’ ability to provide a seamless customer experience across various platforms—social media, apps, websites, marketplaces, and offline stores. The pandemic, AI, and resilient supply chains have accelerated this comprehensive approach. 

Shopping habits of users in e-commerce in malaysia

49% of consumers adopt a hybrid shopping approach and are comfortable with both physical and online stores. When shopping in a physical store, 8 out of 10 shoppers check product reviews and compare prices on their mobile. This highlights seamless shopping growth as one of Malaysia’s rising e-commerce trends. Brands are increasingly investing in live streaming, social media, efficient inventory management, and faster shipping to increase customer satisfaction.

The majority of consumers in Malaysia look at online and physical stores before making a purchase.

Locad can help you create a seamless experience by connecting online and offline sales with our logistics engine.

5. Linguistic diversity in Malaysia is increasing the popularity of voice commerce

Between 2021 and 2023, voice commerce grew by 321% worldwide. In Malaysia, Voice commerce is still at a nascent stage but is projected to grow in 2025 and the years to come. The popularity of smart devices like Alexa and Google Home is driving the voice commerce revolution. Malaysia is a multicultural country with Islamic, Chinese, and Indian communities. The top languages spoken are Malay, Mandarin, and Tamil. In addition, there are numerous local dialects for each language. This linguistic diversity makes voice interactions a go-to for consumers. Searching for products via voice search feels more natural for consumers across SE Asia. 

Leading e-commerce marketplaces in Malaysia have been quick to adopt this trend. For example, Lazada has added a voice search feature to its mobile app. This allows users to look for products using different languages. Voice-based payment systems have also started gaining popularity. To capitalize on this trend, e-commerce sellers should optimize product listings for voice search and integrate with popular voice assistants. In addition, focusing on key metrics like meeting marketplace SLAs, maintaining good seller ratings, and low returns can help sellers rise on marketplaces. Locad’s logistics engine consistently monitors account health to help brands maintain SLAs and become preferred sellers. 

22% of global consumers make purchases directly through voice commands.

Don’t get left behind—capitalize on the voice commerce trend!

Integrate with Locad for seamless fulfillment across platforms like Shopee and Lazada, which feature voice search capabilities.

6. Price-sensitive Malaysian consumers show a preference for discounts

E-commerce in Malaysia sees many large annual sales – Chinese New Year, Hari Raya sales, Singles’ Day, Black Friday and EOY sales. These events are very popular and attract customers from across the globe. In 2023, Singles’ Day saw a sales increase of 156% in Malaysia. Similar trends are seen across SE Asia. 


42% of  Malaysian consumers consistently compare prices before making purchases. This behavior is especially pronounced among individuals aged 45 to 54, with 81% actively seeking the best deals.

Malaysian consumers show varied patterns when paying a premium price for quality products. A survey found that 23% of respondents are willing to pay more for high-quality products. However, 44% said they would only occasionally pay premium prices for higher quality. This indicates that while quality is important to many consumers, price remains a significant factor in their decision-making process. Younger consumers (ages 18–34) are keen to explore new products or brands offering better value, with 83% actively seeking better deals. This demographic is highly responsive to digital marketing strategies that emphasize discounts and promotions.

Data shows that Malaysian consumers emphasize value for money. This is evident when shopping for toys, games, and hobbies (44%), groceries (38%), sports, and outdoor products (35%).  

Malaysia has witnessed a 214% increase in shopping during sales like Singles’ Day.

With Locad, you can manage the demand surge efficiently, offering competitive prices without compromising your margins.

7.  Digital payments and mobile wallets are reshaping e-commerce transactions

Graph showing growth of digital payments in malaysia

Malaysia’a economy has been growing steadily over the last 40 years and now the country is on the path towards becoming cashless. A study by Visa found that 70% of Malaysian consumers prefer digital payments over cash. The adoption rate is quite high, with 50% using online banking and 40% creating digital wallets. The total transaction value of digital payments is expected to reach US $42.2 billion by 2028. The most preferred mode of payment is Mobile banking apps. Previously, Malaysia was highly reliant on cash. However, movement control order (MCO) restrictions and financial incentives for going cashless have encouraged more consumers to turn to digital wallets. 

Buy now pay later (BNPL) services are also widely gaining popularity among Malaysian consumers. A KPMG survey ound that about 28% of respondents have used BNPL in the last year. The highest usage was found in the age group of 25 to 34. 

Popular marketplaces like Shopee, Lazada, and Zalora offer seamless digital payment options.

Locad ensures hassle-free integration with these platforms, empowering your business to scale efficiently.

8. Fast and reliable shipping is driving consumer loyalty

In 2025, fast and reliable delivery has become a top priority for Malaysian consumers. A survey by KPMG reveals that Gen-Z shoppers, in particular, value faster delivery options over discounts and promotions. There is a significant need for e-commerce sellers to double down on efficient logistics and shipping. Over 40% of online shoppers in Malaysia have cited slow or delayed deliveries as a major reason for avoiding e-commerce platforms. 

Many consumers are willing to pay extra for same day deliveries. Real time tracking and flexible delivery options are also becoming a priority for shoppers. However, most e-commerce deliveries in Malaysia still take more than two days (with the exception of areas like Klang Valley). This gap in service highlights an opportunity for retailers to differentiate themselves by offering quicker delivery options.

72% of Malaysian consumers prefer shopping online for the convenience of time and quick deliveries.

Why should your business get left behind?

With Locad, >95% of orders are fulfilled on the same day or the next day!

9. Creating personalized shopping experiences with AI helps drive sales

E-commerce in Malaysia is competitive, and businesses need to stand out to capture customer attention. This is where personalization comes in. Personalized product recommendations and targeted promotions play a big role in encouraging purchases. 

Businesses that implement AI for personalization can see more than a 25% improvement in customer satisfaction. This enhancement is crucial as it translates into higher customer loyalty and repeat purchases. A McKinsey report also found that 35% of Amazon’s revenue is generated from its AI-driven recommendation engine. 

The returns from using AI can be immense. For instance, Sapphire, a leading fashion retailer, achieved a remarkable 12X ROI by implementing AI-powered product recommendations. This solution helped improve product discovery and streamline the browsing experience for customers. With the help of data analytics and machine learning, businesses can adjust their offerings to match consumer preferences.

Global marketplaces like Amazon leverage AI to enhance customer experiences.

Locad integrates effortlessly with the Amazon Seller app to streamline your order fulfillment process.

10. Sustainability and eco-friendly practices are shaping consumer choices

Graph showing willingness to pay premium for sustainable products in Malaysia

As consumers become more environmentally aware in 2025, sustainability is becoming an important factor. In Malaysia, 93% of shoppers actively look for eco-friendly products. However, 44% of them still expect it to be priced competitively. 

E-commerce can have a significant environmental impact, from excess packaging to carbon-heavy shipping. To reduce this, many consumers are choosing businesses that focus on sustainable sourcing and fulfillment. Second-hand products have also become popular alternatives for those looking to lower their environmental footprint.

43% of Malaysian consumers support brands that invest in sustainability initiatives.

With Locad, you can offer custom sustainable packaging to align with eco-conscious consumer preferences.

Conclusion

Staying updated on the latest e-commerce trends in Malaysia is essential for businesses looking to succeed in 2025. As the market grows, adapting to consumer needs and using new technologies will help businesses stay competitive. By understanding these changes, businesses can make smarter decisions and drive long-term growth. Those who embrace innovation and flexibility will be better equipped to take advantage of the opportunities in Malaysia’s expanding e-commerce market.

Experience fulfillment by LOCAD

Grow your business through Locad’s simplified and automated fulfillment solution

  • Unlimited and scaleable warehousing
  • Pay only for what you store
  • No hidden fees or lock-in periods
  • Zero inbound costs
  • Wide integration with marketplaces
  • Automated logistics and delivery
Get the latest e-commerce industry news, best practices, and product updates!

Don't miss out on the latest news!

Get the latest industry news, best practices, and product updates!

Exclusive benefits to ace your e-commerce game this 2023 with Locad’s desk calendar!