LETTERS: More Malaysians are shopping online, and the way they make purchasing decisions is changing.
This has far-reaching consequences for businesses in the digital age.
The rise of e-commerce poses challenges for traditional businesses that have yet to embrace the digital technology. E-commerce also has an impact on the environment.
According to a recent Malaysian Communications and Multimedia Commission report, the Malaysian e-commerce market will grow on average of 20.8 per cent annually between 2020 and 2025, reaching a market size of RM170.5 billion by 2025.
A variety of factors are driving this growth, including increased use of smartphones and mobile devices, the availability of low-cost data plans, and growing trust in online shopping.
The lockdowns enforced during the Covid-19 pandemic had also normalised online shopping.
One of the primary ways that e-commerce is changing consumer behaviour is through the emphasis on convenience. Malaysians can shop whenever they want, day or night, from the comfort of their homes or on the go.
As a result, consumers now value speed over other factors such as price or brand loyalty.
Readily available information online has made it easier for consumers to do research on products and compare prices before making a purchase.
As a result, consumers are making more informed purchasing decisions, focusing on quality, reviews and price.
But the increasing amount of discarded packaging materials that accompanies the rise of e-commerce has environmental impacts.
In the United States, e-commerce packaging waste is expected to total 165 billion packages by 2020.
In Malaysia, it is reasonable to assume that packaging waste from shipping products will be a significant contributor to the increase in solid waste, which amounted to 30,000 tonnes daily in 2020.
To address these concerns, businesses must invest in environmentally friendly packaging and shipping methods.
Examples include using biodegradable or recyclable packaging materials, optimising shipping routes to reduce emissions, and incentivising customers to choose environmentally friendly options like consolidated shipping or reusable packaging.
Customers should also be educated on the environmental impact of their purchasing decisions, and companies should encourage them to make more environmentally friendly choices.
As a responsible community, businesses that want to succeed in the digital age must address potential concerns and challenges posed by the growth of e-commerce, particularly its environmental impact.
Businesses can benefit from Malaysia's expanding e-commerce market while also assisting in the reduction of environmental issues by investing in sustainable packaging and shipping practises.
Customers must also be educated about environmental issues, such as the carbon footprint of each online order.
We have an obligation as consumers to be more responsible in managing our purchases and consumption, particularly our household waste.
MOHD JURAIJ ABD RANI
Faculty of Economy & Communication
Universiti Malaysia Perlis
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times