5 Steps to Start a Dropshipping Business in Malaysia | 2024

Dropshipping is a popular business as the online shopping trend is getting massive. Many people are curious about it and how much it costs to start dropshipping businesses. Well, in fact, it is not a business where you need a large amount of money to start.

In this business area, you sell products without ever needing to keep them in stock. Instead, when a customer buys from you, the product is shipped directly from the supplier to the customer. This means you don't have to invest in inventory upfront or worry about storing products.

It's a good choice for new entrepreneurs because it reduces the financial risks associated with traditional retail. In Malaysia, dropshipping has become recognszed and popular for its potential in running a business.

Before starting on how to start dropshipping in Malaysia, it's crucial to understand your options regarding dropshipping planning, suppliers, and related information. Take a look at this article for more insights and discover how to start dropshipping in Malaysia.

Why You Should Start a Dropship in Malaysia

Before you learn how to dropship in Malaysia, you need to know some reasons behind the dropship business opportunities in Malaysia.

Malaysia, with a population exceeding 33 million, offers a promising landscape for dropshipping ventures. What makes it ideal? The country boasts a rapidly growing economy and well-established IT infrastructure, particularly in Kuala Lumpur, a hub for numerous IT companies.

The e-commerce Market in Malaysia is poised for substantial growth, with projected revenue reaching US$8.09 billion in 2024. 

This growth trend is expected to continue, with an annual growth rate of 11.24% from 2024 to 2029, ultimately reaching a market volume of US$13.78 billion by 2029.

Moreover, the number of e-commerce users is anticipated to surge, exceeding 19.64 million by 2027. 

For drop shippers and suppliers in Malaysia, there is nearly two-thirds of the population make online purchases at least once every 30 days, which highlights the market potential.

How to Start Dropshipping in Malaysia

After you know the reason why you should choose Malaysia to start a dropshipping business, you also need to know the steps for starting the business there. 

Here are the steps you need to carry on how to start dropshipping in Malaysia. 

1. Create an Online Store on E-Commerce

The first thing you need to do on how to do dropship in Malaysia is to consider which platforms to sell and create an online store. Starting a dropshipping business in any country, including Malaysia, begins with setting up your online store. 

For Malaysian entrepreneurs, choosing an e-commerce platform like Shopify is recommended due to its user-friendly features and customisation options. 

While Shopify requires a monthly subscription starting at USD29, it provides reliable support and access to third-party experts. A well-designed online store helps reduce competition, showcasing your products to potential customers effectively. 

You can source products from Malaysian dropshipping suppliers and it is more flexible compared to platforms like Amazon or Lazada. This will help you in starting a dropshipping business in Malaysia.

2. Choose Product Niche

The next step in how to start dropshipping in Malaysia is to choose your product niche. Some dropshippers focus on unique private-label or print-on-demand goods, while others offer items found in various stores. So, how do you stand out and carve a niche in a competitive market?

The simplest way to avoid intense competition from established dropshipping stores is by targeting an underserved niche (a specific segment within a broader market, characterised by distinct customer needs, preferences, or interests).

To identify profitable niches, thorough keyword research using tools like Facebook Audience Insights, Google Keyword Planner, Google Trends, and Ahrefs is essential. 

These tools help you analyse audience interests, search queries, and competition levels, allowing you to discover areas of unmet demand.

After you've identified a promising niche, the next step is to source relevant products that provide the needs of your business. Collaborating with suppliers or manufacturers to offer specialized products can differentiate your business from competitors and attract a more customer.

3. Understand the Target Audience

Once you've pinpointed a specific group that would benefit from your dropshipping store, delve deeper into understanding them.

Getting to know your target audience allows you to communicate with them effectively. This means knowing the platform they use, what marketing content resonates with them, their product preferences and features, their favourite brands, and successful businesses catering to them. 

By answering these questions, you'll gain insights into your marketing efforts and content to connect with your target audience effectively. Researching your audience doesn't have to be complicated, but it should provide you with a clear picture of who your customers are and what they want.

4. Find the Right Dropship Suppliers in Malaysia

Finding reliable dropship suppliers in Malaysia can be tricky. However, some suppliers are already known for their trustworthiness and popularity in the market. 

Here is the list of reputable dropship suppliers in Malaysia:

1. AliExpress: AliExpress is a well-known international dropshipping platform which offers affordable products and secure online payments. But, the delivery can be slow and you have limited control over inventory.
2. Alibaba: Another prominent supplier is Alibaba, a B2B marketplace with millions of suppliers offering bulk products. While it's affordable and flexible for small businesses, there's high competition, and product quality may vary.
3. CJDropshipping: CJDropshipping is a popular platform in Malaysia with a wide range of products and a focus on quality and service. They collaborate with major platforms like eBay and WooCommerce, although their website may have occasional performance issues.
4. DropshipMalaysia: This supplier specialises in home and lifestyle products, offering affordable prices and reliable customer service. They handle packing and shipping, ensuring product quality, but you'll need to sign up to access pricing.
5. 1688: Known for low prices and high-profit margins, 1688 is a domestic trading platform with a variety of products. However, the platform is in Chinese, which can be a challenge, and there might be occasional payment issues.

Each supplier has its pros and cons, so it's essential to weigh your options based on your business needs, product preferences, and customer expectations.

5. Marketing Campaign

The last but not least step on how to start dropshipping in Malaysia is a marketing campaign. A successful marketing campaign is essential for the success of any business, especially in dropshipping where competition is high. 

Effective advertising ideas can significantly boost sales for your dropshipping store, considering multiple sellers offer similar products. Utilising platforms like Facebook, Instagram, and Pinterest. Collaborating with influencers is also an excellent marketing strategy to promote your products and store. 

You also can pay attention to holiday marketing for your campaign. Follow what are the festive seasons or big holidays in Malaysia. Take advantage of upcoming events to launch targeted marketing campaigns and increase visibility for your products and store.

Conclusion

To wrap up this article, that's all the information on how to start dropshipping in Malaysia. This guide can also apply to how to start a dropshipping business for beginners.

As the last step stated, having a great online presence is important for your business marketing campaign. Since you are operating an online store, you want to have more potential customers to see your dropshipping business easier.

To enhance your online presence, consider using SEO. SEO allows you to target potential clients using relevant keywords, leading to increased website traffic and revenue through the creation of quality SEO-friendly content.

Explore SEO Services by cmlabs to learn how we can help improve your product listings, content production, and website structure, to make your business shine brighter in the search engine result page (SERPs)!