8 Best E-commerce Websites You Can Use to Dropship in Malaysia

Malaysia has, in recent years, become a booming e-commerce hub. Starting a dropshipping business in the country is thus no different from starting one anywhere else. It can, in fact, be very lucrative. 

However, to succeed, it is important that you understand the available e-commerce platforms in Malaysia, how they work, and how you can harness them to access customers. 

With that in mind, let’s analyze the leading e-commerce platforms as well as their benefits and downsides. 

Shopee

Shopee was launched in 2015 in Singapore. The backing of its owners, Tencent Holdings, has since enabled it to expand its presence into 7 other countries: 

• Malaysia
• South Korea
• The Philippines
• Taiwan
• Vietnam
• Indonesia
• Thailand

The variety of goods on Shopee is quite vast. However, buyers are also immensely drawn to the platform due to its crazy discounts and free shipping offers.

How It Works

Dropshipping on Shopee is allowed. You only need to: 

• Register a Shopee account
• Find a dropship supplier
• Integrate your Shopee store and your dropship supplier’s platform (if possible)
• List the goods you will be dropshipping in your store
• Market your store and process orders as they come in

Given the rules of dropshipping, your supplier or dropshipping agent will be the one to fulfill the orders in your dropshipping store. As such, it is best to choose ‘Non-Shopee Supported Logistics’ as your shipping preference when registering your account. This informs Shopee that you will be making independent arrangements for your company to receive their orders.

Payments are credited to your seller balance after a buyer confirms delivery or the Shopee Guarantee period ends. You can then withdraw the money to your bank account whenever you choose to. 

Pros: 

• Shopee attracts a high number of buyers that you can tap into to find customers for your dropshipping store.
• Shopee does not charge sellers any listing or selling fees.
• Shopee provides marketing tools on its platform that you can use to drive traffic to your dropship store.
• Buyers can pay through different convenient payment options 

Cons: 

• You have to make separate shipping arrangements for your dropshipping store.

Lazada

Lazada began operations in 2012 in Singapore too. At the time, it was owned by Rocket Internet but it was later sold to the Alibaba Group. It is now active in 5 other countries: 

• Malaysia
• Thailand
• Indonesia
• Vietnam
• The Philippines

Lazada boasts of over 150,000 sellers. They are spread across its different seller platforms known as Lazada Marketplace, LazMart, and LazMall. 

Put together, they all provide an incredibly dynamic selection of products. This, coupled with efficient shopping supported by the Alibaba Group, has made Lazada a leading e-commerce platform in South East Asia that attracts over 52 million buyers a month.

How It Works

There are no rules against dropshipping on Lazada but just like on Shopee, there are not enough tools on the platform to support seamless dropshipping. Nevertheless, you can still get your dropshipping business running on Lazada, and here is how. 

• Identify a dropshipping supplier
• Register an account on Lazada

Tip: this process takes time due to vetting and confirmation processes. It also requires some documentation to back up the information you will provide on your registration form. So, be patient.

• Choose a convenient way for Lazada to pay you (Payoneer or World First)
• List goods from your dropshipping supplier on your Lazada store
• Market your store and process orders as they come along

On fees, Lazada charges a 2.24% payment processing fee. Commissions on goods are only charged if you are a LazMall seller. 

Pros: 

• Lazada has a good reputation due to its stringent vetting rules.
• The Lazada seller central app is user-friendly and has helpful tools.
• You can easily learn how to navigate Lazada and e-commerce through resources on Lazada University.
• Lazada attracts a great amount of shopper traffic in Malaysia and South East Asia in general.
• Lazada fees are not exorbitant.

Cons: 

• The round-about payment system can be inconvenient because you have to wait for payments.
• There are only two options through which sellers can receive payments.

PG Mall

PG Mall is Malaysia’s formidable answer to Etsy. It solely focuses on selling local products and handicrafts through e-commerce and is renowned for its high quality standards. It was launched in 2017 and has been ranked by different analysts as Malaysia’s 3rd most visited website. 

How It Works

It is free to set up an online store on PG Mall. Subsequently, it will cost you nothing to begin dropshipping on the platform. Here is how to get started. 

• Ensure that you have a dropship supplier that sells local products or handicrafts. They must also meet PG Mall quality standards.
• Register a PG Mall account and set up your online store.
• List the goods from your dropship supplier.
• Begin selling. 

All payments from buyers go directly to PG Mall. They are held in escrow until your buyers confirm that they have received their orders.

Pros: 

• PG Mall offers a unique platform for sellers of local products and handicrafts where they do not have to compete with other products.
• The PG Mall API makes it easy to run your store on the go and integrate It with helpful dropshipping apps.
• The PG Mall seller portal has helpful marketing tools.

Cons: 

• You have to wait for delivery to receive payment.
• The type and origin of goods that you can dropship are limited. 

Lelong

Lelong is a veteran platform in Malaysian e-commerce. It was started in 2007 and built a name for itself by remaining reliable and consistently selling quality merchandise.  

Plus, Lelong has a very loyal and active customer base among middle-aged and older Malaysians that used it for years before other sites came up.

How It Works

Lelong offers 3 types of memberships: 

• WebStore – RM 1.09/day. It includes a Webstore, a storefront, and an integrated payment service but no dedicated store domain name or SSL certificate.
• WebStore Plus – Free for 2 years (a limited-time offer). It includes a marketplace storefront, a net payment service, and other plug-ins. No dedicated store domain name or SSL certificate.
• WebStore PRO – RM 2.73/day. It includes a branded storefront, a marketplace storefront, Integrated payment services, extra plug-ins, and a personalized domain name. 

To begin dropshipping, you would need to: 

• Identify your dropshipping supplier
• Register for one of the packages listed above
• Create your Lelong store
• List your goods
• Begin receiving and processing drop shipping orders

When choosing shipping options, opt to use your own courier. This will make it possible for you to fulfill orders through your dropshipping supplier or sourcing agent instead of through Lelong. 

Pros: 

• Lelong has a loyal customer base with purchasing power.
• Millions of buyers flock to Lelong due to its great reputation and high security features.
• You can dropship C2C and even start bulk dropshipping because Lelong supports B2B trade too. 
• Lelong offers its sellers automation options that make it easy to run their store and manage inventory.

Cons:

• The rates for selling on Lelong are higher for international sellers.
• Lelong charges commissions on top of the subscription fees. 

11Street

11Street has been in the Malaysian e-commerce scene since 2011. It is now known as PrestoMall and is also active in Korea and is even outpacing major competitors like GMarket. 

This e-commerce website has over 40,000 sellers on board. They offer diverse products ranging from personal care, F&B, and fashion to home decor, furniture, and electronics. It is thus no surprise that the site averages over 8.4 million buyer traffic.

How It Works

It is free to sign up as a seller on Prestomall. The website only charges commissions once a sale goes through. 

However, you will have to indicate whether you are a business seller or a global seller during registration. You will also have to provide documentation for Prestomall to verify your business registration details 

Dropshipping works the same way as that of most e-commerce websites on this list. You simply have to register and partner with a dropship supplier to have them fulfill your orders.

Pros: 

• Prestomall has a ‘Direct Delivery’ shipping option that allows you or your dropship supplier to ship goods directly to buyers.
• Despite the revamp from 11Street to Prestomall, the website still enjoys high user traffic.
• Seller registration is free.

Cons: 

• Verification of your documents and authentication of your registration can take a while.
• Prestomall is not very upfront about its commissions and you may only learn about them as you register.

Zalora

Zalora is the go-to e-commerce site for anyone shopping for fashion items and apparel in general. It has had a steady and growing fan base since it began operations in Malaysia in 2012. It is now also present in: 

• Singapore
• Indonesia
• The Philippines
• Hong Kong
• Taiwan
• Vietnam
• Brunei

Zalora attracts comparatively lower traffic of about 1.5 million users. This can be attributed to the fact that it is a niche platform. Nevertheless, while the buyer visits may be on the lower side, they have remained on an upward trajectory.

How It Works

Zalora supports dropshipping and has provisions to help you do it with ease. Here is how to navigate the setup.

• Register, provide the requested details, and get authenticated.
• During the registration choose consignment and dropshipping shipping options. This keeps you in control of delivery instead of shipping through Zalora. 
• List products in your store and start fulfilling dropshipping orders.

Pros:

• Zalora offers other essential services such as warehousing which could come in handy if your dropshipping partner has no warehouse in Malaysia.
• Zalora attracts substantial user traffic due to its high standards and the quality brands sold on the website.
• Zalora offers marketing tools and support.

Cons: 

• The terms of registration are only disclosed during the process.
• Zalora has very stringent standards and verification takes time. 

Hermo.my

Hermo was launched in 2012. At first, it focused on selling Korean beauty and skincare products but it now accommodates brands from other countries in Southeast Asia including Malaysia.

This platform may only be ideal if you own a beauty brand and would like to access Hermo.my’s huge customer base.

Based on this, the site may not be a proper avenue for dropshipping. You can, however, have your manufacturer ship directly to Hermo.my instead of sending inventory to you 

Pros:

• Hermo.my is quite popular among shoppers seeking authentic beauty and skincare products.
• Hermo.my can draw significant consumer attention to your beauty brand.

Cons: 

• Hermo.my is not optimized for dropshipping. 

Fashion Valet

True to its name, Fashion Valet is an e-commerce website that specializes in selling stylish clothing from top brands in Southeast Asia. It was started in 2010 and has had a positive reception among shoppers in Malaysia.

The Fashion Valet marketplace would be suitable if you own a fashion brand. You would need to register an account for your brand and await confirmation to start promoting and selling your fashion items. You can then fulfill orders through your manufacturer or 3PL service provider.

Pros:

• Your brand may flourish after getting listed on the Fashion Valet marketplace because of the trust and the liking that shoppers have towards the site. 
• You can comfortably sell clothing items at a premium without worrying about being undercut by cheaper brands.
• Fashion Valet is fashion-oriented and so you do not have to compete with tens of other product categories.

Cons: 

• Fashion Valet is not optimized for dropshipping in its original sense. 

Conclusion

Shoppers in Malaysia have, without a doubt, embraced online shopping. Now that you know what platforms to explore for dropshipping, do not let the immense profit potential of dropshipping in this market pass you by. 
Not sure how to find dropshipping suppliers or how to fulfill orders? Bestfulfill offers all the dropshipping services and 3PL fulfillment services that you need under one roof. Simply reach out to us, tell us what services you require, and request a free quote.