abit about myself
• 1997 Jit Sin BM Boy
• 2002 UTM Comp Sci
• CNET Malaysia 1st Intern (also last)
• Join OYLM sell air cond online (crazy)
• Co-founded webShaper & eCommercemilo
I see myself as a builder, I like building things &
passion about Retail, eCommerce & Internet.
Table of Contents
1) The types of eCommerce
2) The current state of the market
3) The benefits of traditional retail kickstarting
ecommerce
4) The advantages of traditional retail
5) How to Start?
6) Avoid the common mistakes
7) The opportunity
67.0%
38.1%
Source: World Bank
There are more than 20 million Internet Users in Malaysia
Internet penetration in Malaysia higher than
world average
144.7%
92.6%
Source: World Bank
There are more than 43 million mobile subscriptions in Malaysia
Mobile penetration in Malaysia is also higher
than world average
Source: We Are Social
43% or 18.7 millionof mobile subscriptions are 3G connections
35% or 10.5 millionSmartphone penetration of total populations
42% or 4.4 millionSmartphone users have made a purchase via phone
It’s a mobile world
44% or 13.2 millionof total populations use social media on mobile
Source: We Are
Social
Social Media on the go
in circulation, 0.9 million of them are supplementary cards
Source: BNM, 2013
8.2 million credit cards
Opportunities Malaysians are used to making payment via online banking too
We have some 2.3 million
active users who performed
over 2.5 million shopping in
2012.
Maybank ex-President and CEO Datuk Seri Abdul Wahid Omar
Source: Nielsen & PayPal Analysis, 2011
1.40b 1.58b
1.24b1.08b
0.94b0.81b
Euromonitor
(products only)
Online Commerce Market Size: Malaysia
Source: Nielsen & PayPal Analysis, 2011
5.5%
% of whole
Online Commerce59.6%
Mobile Commerce Market Size: Malaysia
Source: Nielsen & PayPal Analysis, 2011
Online Commerce Mobile Commerce
Top Categories for Online & Mobile Commerce
~700 parcels dailygoing into Taylor’s campus via online shopping
So, what’s happening on the real world?
Current State E-Commerce history & milestones in Malaysia
Source: ecommercemilo.com
Wave 1 Wave 2 Wave 3
Air ticket craze Deal sites clones Marketplace battle
E-Commerce 3.0
Current State More leading retailers are offering online shopping services
Category Retailer Own Online Store Join Online Marketplace
Grocery /
Departmental Stores
Yes -
Gift-only -
Yes -
Apparel
-
Yes
Yes -
Electronics & ApplianceYes
-
Health & BeautyYes -
-
Jewellers & Watch-
Yes -
Others
Yes -
-
Yes -
Source: ecommercemilo.com
22 out of top 40 leading retailers (55%) are doing e-commerce
Current State What about SME?
70% of 1 million SMEs
in Malaysia do not have website
Account for up to 99.2% of total business establishments
Contribute up to 32% of Malaysia’s GDP
Employ 56% of total workforceSME
Source: The Edge, SME ICT Usage Survey
Source: ACCCIM 2012 SMEs Survey
48%
28%
24%
Opportunities!
72% Malaysia SME are not doing eCommerce, YET.
• One eCommerce store serve all
• No geography boundaries
• Reach nationwide, then worldwide
#1 easy expansion
• You own the trust
• Much easier to convert existing offline
customers - convenient
• O2O – online to offline, offline to online
#2 It complements you
• No floor space limit
• Unlmited SKUs (literally)
• Virtual 2nd store concept
• Allow you to take pre-order, back order.
#6 Your most complete product catalogues
Marketing Know-how
Product KnowledgeHigh
High
None /
Low
Your own branded storeOpen store in marketplaces
Find your niche
Open store in marketplaces
Find marketing expertsShould you start?
What business model to start with?
None /
Low
Challenges Challenges faced by e-commerce businesses in Malaysia
Source: ecommercemilo.com
Traffic
Sales
Online Sales
($$$)
Unique Visitors
(UV)
Conversion
Rates
(CVR)
Avg Order
Volume
(AOV)= X X
2.5x 1.2x 1.0x3x
3 times sales!
Universal Formula for eCommerce
• Customer Base
• Trust
• Traffic
• Stock
• Customers can see and touch
• In-store pickup for online purchase (when
you do ecommerce)
The advantages traditional retail got
• Understand your market
• Keep it simple
• Domain
• eStore platform (like webShaper: multi
channel)
• Sign up PayPal + Local payment gateways
• Upload 50 to 100 products
• Test, Promote, Launching Promo!
• Encourage review (WOM)
How to start?
• Stocks
• Easily pay for it
• Speedy delivery
• Surprises (good one only, please)
What online buyers want?
• 阮的肉干http://www.pcstore.com.tw/beefpro
How Taiwan DryMeat deliver happiness?
• Products must have USP
Product: 1 key to success ecommerce
juicy
Special
shape
Free wet tissue
No preservative
Nitrogen
packaging
• Delivery exactly what’s order (sell what’s in
stock)
• Surprise them
• Set expectation, exceed it
• Quality of goods
• Reasonable, customer oriented refund
policy
How you can deliver happiness
Metrics Month 1 Month 2 Month 3 …
Product # 100 120 144
Unique Visitors 5,000 6,000 7,200
CVR (%) 0.50 0.50 0.50
Order # 25 30 36
AOV (RM) 200 200 200
Total Sales (RM) 5,000 6,000 7,200
Total Margin (RM) 1,000 1,200 1,440
…
What is your target MoM, YoY growth?
+20% MoM +20% MoM +20% MoM
Start a biz plan with numbers, grow traffic
and sales
• Multiple View Images
• Sell Benefits
• Stock availability
• Top reasons to buy?
• Scarcity -> Desire
• Videos
• User comment?
• Reviews?
Great Contents is your top salesman
Focus on Building Customer Base
Zappos.com Top 10 Lessons
Lesson #1 – The e-commerce Business is built on
Repeat Customers
* Key Success = “Customer Repeat Purchase”.
a Grow your customer base
b Provide Excellent Customer Service
c Then your profits will follow.
More Tips to hit Online Success
* Don’t compete only on price.
* Provide Excellent Customer Service.
(WOM get you more business)
* Customer Service is an investment.
* Start Small, Stay Focused.
* Don’t worry about competitors.
* Don’t forget to have fun!
SEO & Multi Channel matters
Start with an All-in-one, Search Engine
Friendly and Multi Channel webStore
like webShaper
www.webshaper.com.my (SEA)
www.webShaper.net (International)
Common mistakes to avoid
• Build and Customers will come
• Try to be perfect
• Traffic is NOT Free
• Product Sourcing is not important
• No opening Promo, No values
Success stories of our customers
Rcsmart.com.my (Retailer)
Alhumairacontemporary.com (Blogshop)
Scrap-n-crop.com (Home-based)
Odonatabooks.com (Publisher)