Top 10 marketplaces to sell online in Malaysia
Are you planning to sell online but not sure where to start?
We have previously shared some simple guidelines for merchants to decide on whether to sell via online marketplaces or your own-branded online store, which can also be summarized in the diagram below.
Since online marketplaces are providing lower entry barrier for merchants, this has become the popular choice for sellers or retailers to start their maiden e-commerce journey.
Therefore, we are going to share our analysis on online marketplaces in this series, so which online marketplace is the best in Malaysia?
Read our latest analysis of top 10 online shopping sites in Malaysia
Top 10 online marketplaces in Malaysia
Our criteria to rank the top 10 online marketplaces are as below:
• Site traffic is the no.1 factor (no traffic, no sales for merchants, right?)
• Enable local merchants to sell online (but not limited) to local market
• Offer any kind of physical products, bar Zalora which focus mainly on fashion
• Facilitate online payment, bar Mudah,my which is more like a classified site
Alexa rank in Malaysia: #21
Estimated monthly visits (Nov 2014): 5,000,000
Alexa rank in Malaysia: #22
Estimated monthly visits (Nov 2014): 3,800,000
Alexa rank in Malaysia: #50
Estimated monthly visits (Nov 2014): 3,000,000
Alexa rank in Malaysia: #74
Estimated monthly visits (Nov 2014): 1,400,000
Alexa rank in Malaysia: #82
Estimated monthly visits (Nov 2014): 1,000,000
Alexa rank in Malaysia: #127
Estimated monthly visits (Nov 2014): 670,000
Alexa rank in Malaysia: #188
Estimated monthly visits (Nov 2014): 550,000
Alexa rank in Malaysia: #317
Estimated monthly visits (Nov 2014): 250,000
Alexa rank in Malaysia: #326
Estimated monthly visits (Nov 2014): 75,000
Alexa rank in Malaysia: #12
Estimated monthly visits (Nov 2014): 8,100,000
Note: Estimated monthly visits are obtained from SimilarWeb on 2 Nov 2014.
Lelong.my is the #1 marketplace with Lazada closing in
The main reason why we rank marketplaces by traffic is because with more traffic, site-wide Gross Merchandise Value (GMV) is potentially higher (therefore more sales potential for merchants). Read our articles earlier (more than a year ago) on our GMV estimation of Lelong.my, Lazada & Zalora.
We don't rank Mudah.my #1 due to the classified nature of the site: C2C without online payment facilities, and it consists a lot of pre-owned products, not to mention vehicle, properties, services listings.
Therefore, home-grown Lelong.my is the undisputed online marketplace leader in Malaysia, with big-money-backing Lazada closing in. Of course, there are some other factors for merchants to consider before choosing online marketplace but we will leave this to the next installment.
If we refer to top e-commerce sites in Malaysia, international online marketplace sites like Taobao, Amazon, eBay and Tmall are attracting substantial visits here however that's more for consumers end rather than facilitating local merchants to setup store.
Update: 3 new e-marketplaces have been launched in 2015, namely Logon by Sin Chew, 11street by Celcom - SK Planet, GEMFive by Hong Leong. These are not included here and we are sure some top 10 sites above will be ousted from the list pretty soon. More new e-marketplaces coming soon too!
Vertical B2C marketplaces in Malaysia
eBay, Taobao and Rakuten are all running on a typical marketplace model, but the distinction between a B2C or specialty store and marketplace is getting smaller especially since Amazon introduced its marketplace service, followed by the more recent launch of Lazada's marketplace,
Vertical site like Zalora can also be considered as a "hybrid" of B2C and marketplace.
Therefore, merchants do have options to sell on (or supply to) vertical B2C marketplaces beside the top 10 online marketplaces shortlisted above.
In fashion & accessories segment, local sites like POPLOOK, FashionValet, Avenue86 are going strongly besides the option of Zalora. If you are supplying health & beauty products, you might want to consider the fast-rising Hermo.my and HiShop.my. Other local sites like iPmart and Superbuy are also popular here in terms of gadgets & appliances.
Traffic is crucial for marketplace, but it is not everything
Yes, traffic is one of the main reasons to consider but there are a lot more factors to consider before you go sailing with any marketplace.
• Marketplace site traffic
• Customer and product fit
• Merchant support and service
• System, access and control
• Margin, fees and ROI