Malaysian shoppers flock online to beat transport costs

KUALA LUMPUR — The rise in transport cost, including higher toll rates, is forcing more people to ditch the malls and shop online while dispelling misconceptions that Malaysians shun online shopping.

This trend has resulted in online shopping websites, such as Lazada.com.my, joining the ranks of most popular Malaysian sites for the first time.

The website recently ranked No 7 in the listing of most popular Malaysian websites, overtaking Maybank2u.com, which held the top spot for some time, according to analytical insight company Alexa.com.

Maybank2u now ranks eighth of most popular websites among Malaysians.

Also in the rankings were Mudah.my, another online purchasing site, and Lelong.com.

“Initially, I bought stuff online for fun when moving to my new home, but now I’m addicted to it,” said a frequent online shopper, Nadiah Zulkifli of Petaling Jaya.

The young mother, who is also a lawyer, said she turned to online shopping because she was often caught in traffic when travelling to court, which took up a lot of her time.

“With transport costs going up with the petrol and toll price hikes, I feel it is more worthwhile to shop online,” she told The Malaysian Insider.

“I can buy various items… from shoes to washing machines,” she said.

Lazada, which launched its service in Malaysia three years ago with 500 employees, has seen an exponential increase in traffic volume to its website.

It was reported in July 2014 that the company, which has warehouses in the Klang Valley and Kuching, offered about 350,000 products, with 300,000 items introduced gradually by year-end.

Lazada Group, which also operates in Indonesia, the Philippines, Singapore, Thailand and Vietnam, registered sales of more than US$70 million (S$99 million) in December 2014 alone, with a customer base and daily traffic of more than two million.

The growth was also attributed to the increase in connected device ownership across South-east Asia, which practically laid the foundation for a booming online retail sector.

A survey by global information and insights company, Nielsen, in 2014 showed that the number of consumers making online purchases has increased significantly.

It revealed that travel services were the most commonly purchased items online in South-east Asia, along with tickets for events, such as movies, live performances, exhibitions and sports.

Ms Nadiah’s friend, who wanted to be known only as Siti Faezah, has also caught the online shopping bug.

Her first purchase was a washing machine, which she got for RM32 (S$10) and quickly became a talking point on the web.

“It feels like being in a supermarket, where everything is there.

“So what is the point of wasting time, money to face the traffic jams and pay transport costs to go to a supermarket, when you can shop online?” MALAYSIAN INSIDER