Study finds only one in five Malaysians are savvy online shoppers, leaving RM3.67b gap

A joint study by Lazada and Cube Asia has revealed a substantial gap of approximately RM3.67 billion ($900 million) in annual e-commerce spending in Malaysia. This deficiency is attributed to a lack of "savvy shoppers," who make up only 20% of the country's online shoppers. These savvy consumers spend 36% more each month than the average consumer.

The term "savvy shoppers" is defined in the report as individuals who excel in four key areas: verifying product details, optimizing value, exhibiting confidence, and demonstrating digital fluency. Currently, only 20% of Malaysia's online shoppers qualify as savvy shoppers, slightly below the regional average of 24%. The remaining 80% are labeled as "general shoppers."

However, the study identifies a significant opportunity to improve shopping habits in Malaysia. 17% of local consumers are categorized as "near-savvy," meaning they meet three out of the four criteria for being a savvy shopper. The most common barrier preventing these potential savvy shoppers from reaching the next level is verification, which involves checking product details, reviews, and authenticity.

Interestingly, price is no longer the primary factor influencing purchasing decisions for Malaysian consumers. Instead, factors such as product authenticity, seller credibility, and robust purchase protection have gained prominence. In fact, 39% of savvy shoppers are willing to pay more for improved purchase protection, compared to only 24% of general shoppers.

Additionally, the study found that savvy shoppers are more likely to direct their spending towards the "Mall" sections of marketplaces, indicating a preference for trusted environments. Lazada Malaysia's CEO, Kaya Qin, emphasized the platform's commitment to empowering consumers to make more informed decisions, particularly in light of the importance placed on household budgets.

Qin noted that the findings highlight the platform's efforts to help Malaysians spend wisely, rather than simply spending more. The company aims to make every ringgit count for consumers at all income levels by ensuring that shoppers can compare the full cost of their purchases, know who they are buying from, and have confidence in the support available after making a purchase.

To bridge the spending gap, Lazada is prioritizing initiatives aimed at making trusted sellers more identifiable, facilitating easier comparisons between offers, and providing accessible purchase protection. By fostering transparency and service improvements, the company aims to elevate the standards of Malaysia's e-commerce ecosystem.