How to Dropship in Malaysia: The Ultimate Guide for 2024
MyPulse • 7 Hours Ago • 10 mins read
How to Dropship in Malaysia: The Beginners Guide
How to Dropship in Malaysia? You can do it by researching trending products, building online stores, running ads, finding suppliers & shippers, managing inventory, and providing good customer service.
Dropshipping has grown more popular as a way to start an online business in Malaysia. But the common question is how to Dropship in Malaysia.
Here are the key steps to launch your dropshipping store:
Keep reading so that you can have the right plan to build a Dropshipping success story in Malaysia.
Dropshipping in Malaysia
Dropshipping has gained significant traction in Malaysia due to several favorable factors. For one, Malaysia has a large base of digitally savvy consumers. Statistics show:
25.5 million Malaysians are active internet users. That’s 80% of the population connected online.
40.5 million mobile subscriptions indicate high smartphone and mobile commerce usage.
Ecommerce spending is projected to grow 11.2% annually from 2024-2026.
With increasing internet penetration and online spending, dropshipping presents an appealing business model for Malaysian entrepreneurs.
How Does Dropshipping Work?
Dropshipping makes selling products online easier. As a dropshipper, you connect customers to product suppliers. You sell the supplier’s products online without keeping any products in stock.
When a customer buys a product, you send their order details to the supplier. Then, the supplier packages and ships the product directly to the customer. As the dropshipper, you profit from the difference between the wholesale supplier price and the retail customer price you charged.
Benefits of Dropshipping in Malaysia
Unlike opening a physical store, dropshipping offers Malaysians lower startup costs and overhead expenses. Some key advantages include:
Little upfront investment: Dropshipping eliminates upfront inventory costs. You pay suppliers only after selling products.
Low risk: Easily switch products that don’t sell. Diversify by working with multiple suppliers.
Easy to start and manage: No need for warehousing or logistics management. Run your business online from anywhere.
Scalability: Handle increasing sales without worrying about inventory or shipping.
More comprehensive product range: Partner with many suppliers to widen your catalogue with minimal effort.
Dropshipping empowers Malaysians to start an online business with minimal financial risk. Next, let’s explore some steps to follow for starting Dropshipping in Malaysia.
1. Choosing a Profitable Dropshipping Niche
Selecting a niche helps focus your dropshipping store on a specific audience. To make informed decisions on niche selection, tools like MyPulsecan help you analyze market demand, track competitor sales, and identify potential opportunities through smart analytics. But how do you identify a profitable niche in Malaysia’s dynamic ecommerce landscape?
Research Market Demand
If you want to find a suitable product niche, you need to research what people want to buy. This helps you see what types of products are popular and could sell well.
Some websites and tools can help with this research:
Google Trends shows how often people search for specific keywords related to products. More searches mean a product is in demand.
Facebook Audience Insights gives you information about different customer groups. It can help you find customers interested in products not many other businesses sell.
AMZScout looks at what products sell very well on Amazon Malaysia. This shows you products people are buying and are worth selling yourself.
Google Keyword Planner finds longer, more specific product search terms that few businesses have targeted yet. These may be good products to sell before competition gets high.
It’s essential to keep checking back on these sites. What customers want to buy changes all the time. You want your products to match what’s popular now.
Analyze These Key Factors:
First, check how big the market is for that type of product. Choose product types that are sold a lot. That gives you more chances to make sales.
Next, see how many other online stores already sell the same products. Avoid niches where there is too much competition.
You also want to know who your target customers are. Find out their age, gender, income, location and what they like to buy. This helps you market to them better.
Then, think about how much it will cost to advertise your products. Choose products where you can affordably get customers to see your ads.
Finally, ensure you can find suppliers in Malaysia or overseas that sell those products. Reliable suppliers are significant for a good business. MyPulse multi-channel insights also assist in evaluating supplier performance by tracking sales data across platforms, helping you make better supplier decisions.
Top Dropshipping Niches in Malaysia
Ready to find a profitable niche? Here are the top picks to consider for your Malaysian dropshipping store:
Electronics
Gadgets and electronics are in high demand in Malaysia. Dropshipping smartphones, laptops, cameras, smart home devices, and related accessories can be lucrative. Focus on tech-savvy millennials and professionals.
Fashion and Accessories
Apparel, jewelry, bags, shoes, watches, and beauty products appeal broadly. Target fashion-forward youth and working adults looking for trendy, affordable options.
Home and Lifestyle
Kitchenware, home decor, furniture, baby products, sports equipment, and pet supplies are evergreen niches. Appeal to homeowners, families, and hobbyists.
2. Selecting Reliable Dropshipping Suppliers in Malaysia
Suitable suppliers form the backbone of your dropshipping business. You’ll need Malaysian and overseas suppliers catering to your product niche.
Tips for Researching Suppliers
There are a few good places to find potential dropshipping suppliers:
Check sites like SaleHoo and Wholesale2b. Look for suppliers in Malaysia or internationally based on your desired product type.
Look on sites like Lazada and Shopee. Find Malaysia sellers that have high ratings and lots of sales. Contact them to ask if they offer drop shipping.
Search niche forums about topics like weddings or babies. Contact sellers that advertise products. Ask if they can do wholesale dropshipping orders.
Find companies that make products instead of selling retail. Check their sites and social media to see if they seem legitimate. Contact them to ask about minimum orders for drop shipping.
Essential Supplier Qualities to Evaluate
Vet potential suppliers against these parameters:
Pricing and Profit Margins
Wholesale rates from suppliers should let you make at least 30% profit after your costs. Make sure suppliers don’t force you to sell at specific prices. Check if suppliers charge any membership fees or require minimum order amounts.
Order Fulfilment
Suppliers should process orders in 1-3 days before shipping them out. Shipping time to customers in Malaysia should ideally be 4-7 days. Returns and refunds should be seamless and take less than 30 days.
Quality and Reliability
Order product samples from suppliers first to check their quality yourself. See if suppliers are registered businesses locally with contact info. Read their social media and reviews - avoid ones with many complaints.
Top Dropshipping Suppliers in Malaysia
Thoroughly test suppliers before committing. Next, set up an online store to showcase your curated inventory.
3. Creating Your Dropshipping Store in Malaysia
An online storefront establishes your brand identity and is the hub for dropshipping orders.
Choosing an Ecommerce Platform
Consider these popular platforms Malaysian dropshippers use:
Comparison table of ecommerce platforms for dropshipping in Malaysia
We recommend starting on Shopify or WooCommerce to control your branding and avoid marketplace fees.
Designing Your Online Store
It takes some work to build your online dropshipping store in Malaysia.
The most important thing is giving customers a great experience.
Choose a professional, clean-looking theme that works well on phones, too. Don’t use a basic dropshipping theme.
Attractively show your products. Have lovely photos and descriptions that explain the benefits.
Be upfront about shipping costs and returns. This helps avoid surprises for customers.
Make your contact info very visible. Have a contact form, chat box, WhatsApp, email and social media links.
Optimize your store to load fast. Compress images and videos. Limit plugins. Use a CDN.
Security matters, too. Install an SSL certificate. Have strong passwords. Update your software.
Keep testing and improving your store layout. The better the experience, the more sales!
Managing Inventory and Orders
Managing inventory and orders is easier when you connect your ecommerce platform to your suppliers. Helpful apps like Oberlo, MyPulse, Modalyst, Spocket and CJDropshipping integrate with Shopify, WooCommerce and other marketplaces such as Lazada & Shopee.
These apps sync product catalogs from marketplaces like AliExpress and directly from dropshipping suppliers. They centralize inventory across multiple suppliers in one dashboard inside your store. When managing your inventory and orders, tools like MyPulse can be incredibly helpful. MyPulse offers real-time sales insights and helps track product performance, making it easier to streamline operations and stay on top of your business. You can import products, manage orders, and automate processing and shipments all in one place. The automation saves you time, while apps ensure real-time inventory accuracy.
4. Promoting Your Dropshipping Business in Malaysia
Now it’s time to get your meticulously crafted dropshipping store in front of audiences.
Getting your dropshipping store in front of potential customers requires ongoing marketing.
The first effective strategy is search engine optimization (SEO). Research keywords customers use and incorporate them naturally into your website and product content. Create blog posts and guides relevant to your niche to boost organic visibility. Optimize website speed and technical elements.
Next, leverage social media platforms like Facebook, Instagram, TikTok and Pinterest. Showcase products visually in posts tailored to each platform’s audience. Email marketing is also helpful for promotions and cart reminders. Paid advertising through Facebook, Google and influencers rapidly grows brand awareness. Allocate 5-10% of revenue to test paid ads continuously.
The key is continually testing new marketing strategies and creative content. With MyPulse A/B testing features and AI-powered keyword optimization, you can improve your product descriptions and marketing campaigns, helping you drive more targeted traffic and improve conversions. Measure performance to double down on what drives the most traffic and sales in Malaysia. With ongoing optimization, you can steadily grow your dropshipping business.
5. Managing Finances for Your Dropshipping Business
Streamline your dropshipping finances from the start to maximize profitability.
Set Realistic Profit Margins
Pricing products profitably requires calculating your costs first. Start with the wholesale rates and shipping fees per item from suppliers. Factor in transaction fees from payment gateways like Stripe. Account for advertising and marketing costs critical for growing your business initially.
Do market research to see competitor pricing for the same products. This helps determine competitive yet profitable rates.
Aim for 30-50% profit margins per item. This accounts for potential returns and disputes as well. Be ready to adjust pricing based on demand and customer feedback dynamically.
Handle Bookkeeping and Accounting
Running a business means following the dollars and cents. Use programs like QuickBooks or Xero to record sales, note inventory bought, and list business costs.
Regularly compare bank and credit card statements to match up transactions. When paying quarterly taxes, subtract reasonable expenses based on your type of business.
Remember to budget for regular costs such as Website fees, Software, and Advertising.
Managing money solo can get complex as the business grows. Consider having an accountant handle finances so you can focus on other areas.
Expert Tips to Succeed at Dropshipping in Malaysia
Follow these proven tips recommended by successful dropshippers in Malaysia for a profitable business:
Offer Exceptional Customer Experiences
Providing an exceptional customer experience is crucial. Respond quickly to buyer questions and reviews through live chat or social media. Send personalized purchase follow-ups and offer incentives for reviews. Malaysians appreciate a family-owned business feel. Accept returns and handle any disputes calmly to avoid negative social media posts.
Analyze and Optimize Conversion Rates
Analyzing and optimizing conversion rates is also important. Use heatmaps and surveys to pinpoint issues in the buyer journey. Run A/B tests on product info, pricing, shipping, etc., to improve conversions. Watch for abandoned carts and enhance checkout with data insights.
Automate Processes to Save Time
Automating processes saves time. Inventory management software can automate order fulfillment across suppliers. Email marketing platforms like Mailchimp enable drip campaigns and auto-responders. AI chatbots can handle common customer questions when tagged.
Stay Lean and Nimble
Remaining lean and nimble helps new businesses. Test one product first before investing heavily. Start local marketing on social media and SEO, then expand reach. Outsource web design, accounting and IT instead of hiring at first. Keep overheads low by operating from home or coworking spaces initially.
Conclusion: Get Started with Dropshipping in Malaysia Today
The potential for ecommerce success makes dropshipping attractive for new entrepreneurs in Malaysia. By identifying high-demand niches, choosing reliable suppliers, thoroughly testing products, and relentlessly promoting your brand, a profitable dropshipping business is within your reach.
FAQs
Can I start a profitable dropshipping business in Malaysia with a low budget?
You can launch a dropshipping business in Malaysia with a RM2500-RM5000 initial investment for store setup, product samples, and targeted Facebook ads.
What types of products have the highest sales potential for Malaysian dropshipping?
Fashion accessories, phone gadgets, beauty products, and trendy home decor are top-selling products to consider dropshipping in the Malaysian market.
How do I find reliable suppliers for my Malaysian dropshipping business?
Search SaleHoo & Alibaba for suppliers, connect with sellers on Lazada and Shopee, and join niche forums to find manufacturers open to dropshipping.
As a beginner, what skills do I need to start dropshipping in Malaysia?
No prior experience is necessary. Essential skills include primary website building, digital marketing, customer service, supply chain management and accounting.
How can I optimize my online store for the Malaysian market?
Use a fast theme designed for mobile, accept local payment methods, display prices in RM, highlight contact info, and use English + BM.
