E-commerce in Malaysia: implementation and application

E-commerce is increasingly becoming important and is now a common online business format on the internet. The emergence of e-commerce as an alternative medium to conduct business is changing the way that businesses are conducted in Malaysia. Examples of applications of e-commerce are in E-banking, Online Advertising, Own company Web Sites, Electronic Catalogues, Marketing by E-mail, Online Purchasing, Online Selling, Online Order Processing, Tracking or Detecting Delivery of Goods and Online Payments using Credit Card.

When implementing e-commerce, the technical issues to be considered are the Website Design, Layout, website navigation system, Technology support, shopping cart process, Search Engine Optimization, and etc. There are some requirements in maintaining e-commerce websites, including: Product updates, Presentation modifications and Search Engine Optimization revisions. To implement e-commerce successfully, we must plan in advance on how to deal effectively the web site content, pricing variables, stock management, fulfillment of orders and delivery, payment issues, policy on returns, and security support, among other matters.

With e-commerce, the transaction process is paperless because everything can be done electronically at buyers’ convenience. In the case of e-banking, Maybank launched the first Internet banking services in June 2000 and this was followed by other local banks in Malaysia. More and more, local companies nowadays opt to have an online presence with their own corporate websites to cater to a wider audience target in terms of advertising and marketing  and better customer interaction.

E-payment method is one of the issues in implementing e-commerce in Malaysia. Some merchants do not want to install specialized hardware or software to receive payments. For instance, debit card payment system is not widely used in Malaysia because most of the merchants do not want to install the hardware and software required. Security is also one of the factors that affect the application of e-commerce. Users worry that their personal information will be stolen for the purpose of identity theft or fraudulent activities.

In conclusion, although the level of adoption varies within the retail industry, the level of adoption of e-commerce is still encouraging but not extensive. There is room for improvement.

Reference(s):

Ainin S and NoorIsmawati. (2003). E-Commerce Stimuli and Practices in Malaysia. Retrieved Feb 3, 2011, from http://www.pacis-net.org/file/2003/papers/e-business/258.pdf

E-commerceAdvisor.com. (2007). E-commerce Business Plan. Retrieved Feb 3, 2011, from http://www.e-commerceadviser.com/101businessplan.php

Norudin Mansor. (2010). The Application of E-Commerce Among Malaysian Small Medium Enterprises. Retrieved Feb 3, 2011, from http://www.eurojournals.com/ejsr_41_4_11.pdf

PowerHomeBiz.com.(2010). Key Issues in Implementing an E-commerce Strategy. Retrieved Feb 3, 2011, from http://www.powerhomebiz.com/vol103/implement.htm