Malaysian e-commerce sellers are calling for stronger platform accountability, clearer regulations, and better digital tools to sustain growth in an increasingly competitive marketplace, according to a new study by consumer research firm Milieu Insight.
The survey, conducted among 300 online sellers nationwide, reveals that local e-commerce operators are prioritising sustainable, practical growth over aggressive expansion — signalling a maturing digital economy where collaboration and reliability matter more than speed.
“When the ecosystem strengthens, consumers benefit first. Better logistics mean faster, more reliable deliveries. Stronger platform accountability means safer transactions and higher product authenticity,” said Juda Kanaprach, Co-Founder and Chief Commercial Officer at Milieu Insight. “What sellers are asking for ultimately leads to a better experience for every Malaysian buyer.”
The findings also show that Malaysia’s online marketplace is being driven by a young and experienced workforce, with nearly four in ten sellers having more than three years of experience.
Almost half of respondents (47%) are aged between 25 and 34, while women make up 55% of the seller base — underscoring e-commerce’s growing role in empowering female entrepreneurs.
Most sellers manage fewer than 100 orders a month, focusing on trust, consistency, and customer satisfaction rather than sheer sales volume.
Additionally, operational challenges continue to weigh on sellers, with rising logistics costs (39%), overseas competition (42%), and shifting buyer demands (40%) emerging as top pain points.
Despite these pressures, 44% of respondents expect their business performance to remain stable or improve this year. Many remain open to investing in new tools and training — but only when there is clear, measurable value.
The study highlights the growing importance of digital enablement and regulatory clarity in building resilience.
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72% of sellers say access to digital tools keeps them competitive.
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67% emphasise the need for clearer regulations and financial support.
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78% identify delivery reliability as the single most critical factor for growth.
However, inconsistencies in courier performance and fragmented platform support continue to erode seller confidence.
E-commerce platforms — a lifeline for most sellers — face growing scrutiny from the community they serve.
While 43% of sellers use platform promotional tools and 39% rely on in-platform marketing features, many said they want greater visibility, faster delivery systems, and fairer financing options.
Although most sellers accept platform fees as part of doing business, they’re demanding clearer explanations and performance-linked outcomes to justify the costs.
“As platforms raise their standards, consumers will see the difference — fewer failed deliveries, better product tracking, and stronger buyer protection,” Juda added. “These are the foundations of trust in digital commerce.”
Four in ten sellers reported financial losses from failed deliveries, refunds, or damaged parcels, highlighting the urgent need for better logistics reliability.
Global competition also looms large, with 57% of sellers saying international competitors directly affect their business and 75% calling for stronger local support.
Respondents urged platforms and policymakers to boost local visibility, create fairer incentives, and improve logistics infrastructure to help Malaysian sellers compete on quality and authenticity rather than price alone.
The Milieu Insight report outlines five key priorities to strengthen Malaysia’s e-commerce ecosystem:
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Prove value, not just price
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Advance digital readiness through tools and training
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Improve logistics reliability and accountability
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Champion local sellers while safeguarding buyers
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Foster collaboration between platforms, sellers, and policymakers
Malaysian e-commerce sellers remain cautiously optimistic. While challenges persist, most view the future as an opportunity for shared responsibility and smarter partnerships.
Their message is clear: sustainable growth will depend not just on seller effort, but on collective action across platforms, regulators, and industry stakeholders.