Malaysians last year spent RM1.8 billion shopping online, according to results of an online shopping survey released by PayPal. The payment gateway provider estimates that the market will grow to RM5 billion in 2014.
PayPal’s growth in Malaysia last year was the strongest in the region — 70 per cent. Encouraged by this, PayPal opened a regional customer support centre here.
Malaysians for the most part chose to make online retail purchases on local websites to the tune of RM825 million (45 per cent) compared with RM627 million on overseas websites (35 per cent). The remaining RM371 million were made on websites of unknown countries of origin.
These findings showed a huge potential for local websites to cash in on the Malaysian willingness to spend online. “SMEs, wake up. You are missing an opportunity,” he said at a media briefing here today. The Nielsen Company used a sample of 400 online buyers aged 18 and above for the survey.
Most of the online spend was for airline tickets. This accounted for 21 per cent (RM173 million). It was the same overseas, accounting for 11 per cent (RM72 million). Books came a close second at 10 per cent (RM63 million). The US was the most popular country Malaysians bought from, accounting for 41 per cent. Next was Singapore on 23 per cent.
An estimated 1.1 million online shoppers in Malaysia spent an average of RM2,461 per person in 2010. Malaysians spent more locally compared with foreign sites; on airline tickets, financial products, health and beauty products, clothing, shoes and accessories.
When Malaysians spent overseas, 65 per cent said it was because the products were not available locally. Twice as much was spent buying books overseas compared with domestic websites, as well as on movie, music and games downloads. Four out of 10 shoppers said security on credit/debit card online transactions were inadequate. Six out of 10 believed they were taking a risk each time they shopped using a card. Seven out of 10 would buy more online if security was tightened.
Malaysians gave highest priority to payment security (47 per cent). Next came protection for purchases (37 per cent), and not sharing financial details with merchants (31 per cent). Only 21 per cent found receiving orders in time important. Least important (17 per cent) was the cheapest method of payment.
PayPal, with its headquarters in San Jose, California, is an online financial transactions service that acts as a gateway for buyers to pay via PayPal account balances, debit cards and credit cards. Its main draw is that buyers do not have to share their financial information directly with merchants. The service, owned by eBay, operates in 190 markets using 25 currencies including the ringgit. Its international headquarters is in Singapore.
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