ACCORDING to Malay-sia's National Entrepreneur and SME Development Council, small and medium businesses account for 98.5 per cent of all enterprises in the country, which is higher than the Asia Pacific average of 96 per cent.
However, with the Covid-19 pandemic reducing foot traffic at retail establishments, it is these SMEs that are among the hardest hit.
Even before the pandemic, e-commerce has had an increasing share of the retail pie, but the current outbreak has further accelerated that shift.
Recognising this, the government has been proactive in tailoring the Short-term Economic Recovery Plan (Penjana) to reflect the "new normal", with the Malaysia Digital Economy Corporation rolling out a programme specifically geared towards
helping small businesses to build their e-commerce capabilities.
If your business isn't yet online by now or has only a minimal presence without online retail capabilities, now is an opportune time to change this.
Go local, regional or global?
For many businesses, e-commerce offers an unprecedented level of reach; where they once would have had only a
stall at a night market, business owners are now reaching customers on the other side of the world thanks to online shopping.
Regardless of where you cast your net, business owners looking to leverage digital technology and step into e-commerce should consider these following insights:
You shouldn't be
intimidated at this prospect
According to UPS's Pulse of the Online Shopper study, th online retail presence may sound daunting, but rest assured, HTML or coding knowledge is optional, and building your online mall from scratch isn't necessary.
Marketplaces, such as Amazon, Lazada and Alibaba, are widely used in many countries in the region and offer a cost-effective solution to display your products to consumers. These platforms present an opportunity for businesses to replace lost revenue in a relatively short time.
Optimising your page for mobile commerce can mean make or break for your business.
According to our research, over a quarter of online purchases today are made on a mobile device.
Their purchase journey is non-linear and can involve combinations of browsing on mobile devices and completing the purchase on a desktop, or vice versa, so you should aim to offer a consistent, seamless browsing and buying experience across these mediums.
Our study offers further insights into ensuring the customer journey runs smoothly through to the point of purchase.
Credit and debit cards, as well as digital payment services like Paypal or Alipay, are the most used payment methods at checkout, but other payment services from Apple or Android are also used, as well as some local operators.
Delivering customer
satisfaction
According to our study, nearly 94 per cent of online shoppers indicated that having a guaranteed delivery date for their shipment was important.
While it is crucial to have visibility and assurance in the delivery process, it doesn't necessarily mean that all customers are going to want their shipment as soon as possible.
Some may prioritise both urgency and definite timelines and are willing to pay a premium for it, but others may be willing to wait and want a delivery date in times like these.
Online stores can offer delivery options spanning a range of budgets and needs for delivery.
We found that 70 per cent of consumers in the Asia Pacific region agree that the returns experience impacts their overall perception of a business.
Forty per cent of Asia Pacific online shoppers had made sure to read return policies before purchasing an item, so catering for reverse logistics through a simple returns solution is a vital part of the process.
Trying a different approach in trying times
The pandemic and Movement Control Order have hit the reset button on many aspects of our daily life, forcing us to rethink about how we live, play, and conduct business.
It also presents an opportunity for business owners to reconfigure their operations for recovery and guard against future shocks. SMEs aren't alone in this journey, with the government implementing its raft of measures to help more operators go online.
At UPS, we've helped Malaysian businesses enter the e-commerce market and expand their presence online during this unprecedented period of change; our experience with e-commerce points to the fact that these investments often pay off in the long term.
And right now, growing your digital presence will go far to future proof your business and allow you to reap returns when the recovery comes around.
The writer is managing director of UPS Malaysia and Singapore