Chenxian Fu, Author at unicommerce.com

Multi Warehouse Management for E-commerce Businesses in Malaysia – Challenges & their Solutions

Chenxian Fu — Fri, 02 Aug 2024 06:22:43 +0000

Table of Contents

1. Introduction
2. Understanding What is Multi Warehouse Management
3. Needs and Challenges For Multi-Warehouse Management in Malaysia

Order Routing
Fragmented Inventory
Inefficient Order Fulfillment
Increased Operational Cost and Complexity

4. Solutions for Effective Multi Warehouse Management

Implementing Robust Inventory
Efficient Automated System Integration

5. Let’s Sync Your Multi-warehouse Set Up!

The numbers in the e-commerce ecosystem are always on the rise. Malaysia is the 24th largest market for e-commerce and one of the most dynamic digital economies in Southeast Asia, as it records a constant increase in mobile commerce. Like any other third-world country, this modernization has exponentially grown and encouraged people to buy more and more.

Consumers who accepted a single popular product a few years back now have innumerable choices to choose the same product from different marketplaces. The competition lies in who can make that product the fastest available with the best pricing. Hence, sellers are now focusing on delivering to their consumers as quickly as possible. This approach demands multiple touchpoints to sell and store.

If you sell in multiple geographies, you’ll need to stock your product in several warehouses. This will guarantee two things: fast delivery to your customers as their order will be processed from the nearest warehouse. Second, low logistics cost: you don’t need to cover extreme distances. Let’s try to understand this through an example:

For instance, you sell Product A in Malaysia and Singapore. But you only have one warehouse in the country’s northern part. If you process all the Singapore orders from that warehouse, the hefty logistics cost will minimize your profit margins. Moreover, the consumer base in Singapore might not appreciate the longer delivery times. Then why not store your inventory at two places and process your orders accordingly?

This drives us to the question of how you will manage multiple warehouses located at different places. Let’s explore the answers to this question in more detail and the potential of how technology can streamline the multi-warehouse workflow for businesses in Malaysia.

Understanding What is Multi-Warehouse Management

To put it in simple language, selling on multiple touchpoints has become essential in Malaysia which involves:

Inventory control at a larger scale
Central management of the operations
Implementing robust logistics to handle the complexities of shipping both nationally and internationally

All these requirements are closely linked to warehouses. However, streamlining the workflow and logistics in such a scenario can be challenging. Here comes the Multi Warehouse management!

In technical terms, it is a practice of distributing and managing inventory across multiple storage locations. In descriptive terms, it is a central system that manages all the operational parts of the warehouse from one single central place. This includes the management of inventory, whether it’s stocking in or selling out. To optimize the storage, which is a very important part in the case of parent and child warehouses. The parent warehouse is the one that receives and stores the inventory and sends it to the child warehouses which are the distribution point for further operations.

For instance, marketplace warehouses like Shopee or Lazada have to be present in the central part of the country, Kuala Lumpur. Still, their presence is also essential near Singapore. This creates a challenge at different levels to manage and optimize logistics, inventory, order fulfillment, and shipping.

Challenges For Multi-Warehouse Management in Malaysia

1. Order Routing

One of the most basic needs of having a central system for multiple warehouses is to position your inventory closer to your customers. Other than Kuala Lumpur, if the order is received from the north or south extreme of the country, the processing shall be automated according to the proximity of the inventory available.

This is one of the key benefits for Malaysia, where marketplaces have coined the rule of processing orders within 24 hours of receiving them. This works effectively for faster deliveries and ensures order fulfillment along with happy customers.

2. Fragmented Inventory

Maintaining stock levels across different places manages the real flow of order fulfillment. Track your inventory right from receiving it in the warehouse and maintaining the stage of inventory replenishment. If you can see all the processes from one platform, managing the operations becomes ten times easier.

For instance, you have a parent warehouse in Kuala Lumpur, and the child warehouse in the north region has run out of SKU1 inventory. According to the cycle count, you will be notified accordingly before the inventory runs out. Additionally, you will be able to see all the products sold, to be sold, good or bad inventory, and the returned and damaged ones. Hence, you won’t have to get stuck into the calls and run after the record-keeping by people to get the updates.

3. Inefficient Order Fulfillment

In the game of selling, two elements are at its nucleus: inventory and accuracy. Most times, when an order is not fulfilled, the reasons are either related to the unavailability of the inventory or something is wrong with the accuracy of information. Accuracy plays a crucial role in the game of e-commerce selling, whether it is related to fetching order details or the number of inventory in your warehouse.

If you are not able to see the right alignment of your orders and inventory in the different warehouses, this can create everyday hassles and unsatisfactory customers.

4. Increased Operational Cost and Complexity

Business is about making profits and spending your costs smartly. When operations costs increase, it directly affects profits. Coordinating logistics, inventory, and order processing among multiple warehouses is challenging.

There is a very rare chance that you can maintain a similar workflow at different warehouses. If the inventory is at the parent warehouse, it is ordered from the southern corner. This happened because of the unavailability of the product at the child warehouse in the south. Then, people working there will communicate the instance to the parent warehouse if you are not able to see the centralized orders. Finally, the order will be processed with the additional cost of transportation and the extra time that the whole process took, along with the complexity.

Solutions for Effective Multi Warehouse Management

1. Implementing Robust Inventory

With the implementation of the multi-warehouse management system comes access to robust inventory in your warehouse. The main function of the warehouse is to maintain the inventory and process it according to the orders. And the good part is you have control of all of it. With one click, you can prevent the overstock of our stockouts. No more hide-and-seek with the products, locked with utmost accuracy and security.

You can ensure harmony in the warehouse with real-time tracking, cutting down on manual errors, and optimizing the space with no room for chaos, all despite your location. Sounds amazing, right?

2. Efficient Automated System Integration

This one is a secret weapon that propels the operations to the next level. The functioning of the e-commerce world relies on smooth communications among the different parts related to inventory, logistics, and order processing. Let’s say you can capture accurate orders and create a picklist according to the different categories like SKU, single or multiple products, priority-wise, etc. When the system communicates with the right packaging and logistics provider, it requires an efficient system.

You don’t need to worry about each step of the process, as your different systems are integrated well and function smoothly, reducing your operational costs and boosting your business’s efficiency.

Let’s Sync Your Multi-warehouse Set Up!

Finally, the booming Malaysian e-commerce market needs something that is not just trendy but a necessity of the times. By investing in the right solutions, you can master the art of operations in a few seconds.

Whether scaling locally or venturing into new countries and regions, a robust multi-warehouse strategy keeps your logistics smooth and efficient. Nothing like daily hassles would affect your business flow. Ready to conquer the e-commerce world? Get your warehouses in sync, streamline your logistics, and watch your business flourish! Happy selling!

Key Challenges and Opportunities in Malaysia’s Retail Sector

Chenxian Fu — Fri, 19 Jul 2024 07:04:38 +0000

Table of Contents

Introduction
Understanding Malaysia’s Retail Industry
Major Challenges and Solutions in Malaysia’s Retail Sector
1. Manual Dependency for Managing Warehouse Operations
2. Transitioning to Digital Retail
3. Creating a Seamless Omnichannel Experience
4. Logistics and Delivery Issues
Let’s Make Retail Selling Simplified in Malaysia

Whether you’re at bustling markets like Petaling Street in Chinatown or upscale malls such as Mid Valley Megamall, the retail landscape of Malaysia has a lot to offer.

But for sellers aiming to thrive in this highly competitive market, challenges and opportunities both await.

How can they make the most of this market?

What obstacles do they need to overcome?

Let’s dive into these questions by first understanding Malaysia’s dynamic retail industry!

Understanding Malaysia’s Retail Industry

The Malaysian retail market is considered one of Southeast Asia’s fastest-growing markets. This growth is driven by increasing internet penetration and the widespread use of smartphones and other smart devices. At the same time, more consumers are turning to the convenience of online shopping, and the number of online shoppers in Malaysia is continuously growing.

With this shift, we have also seen a digital transformation in the retail industry. If you’re a seller selling in Malaysia’s retail market, it has become imperative for you to adopt an omnichannel approach. This means you should start selling on multiple platforms, such as online marketplaces, D2C websites, and physical stores, to reach and engage with your consumers at every touch point.

[Elevate Your E-commerce Business with an Order Management System]

Major Challenges and Solutions in Malaysia’s Retail Sector

So, let us understand the major challenges and the solutions a retail business faces while selling in the Malaysian market.

1. Manual Dependency for Managing Warehouse Operations

Many retailers in Malaysia still rely heavily on manual processes to manage their warehouse operations. This is prone to errors and can lead to inefficiencies in the warehouse such as stock discrepancies, delays in order processing, and increased operational costs.

Solution: Malaysian retailers like you can benefit greatly from investing in automated warehouse management systems (WMS). These systems use advanced technology to streamline important processes like inventory tracking, order fulfillment, and logistics management.

2. Transitioning to Digital Retail

With more and more people buying online, traditional retailers in Malaysia face the major challenge of selling on the digital landscape. Marketplaces like Shopee, Lazada, and Zalora dominate the online shopping scene. Transitioning to these platforms involves more than just listing products; each marketplace has its own requirements that retailers must adapt to.

[Achieve Real-Time Inventory Sync with Advanced Inventory Management Software]

Solution: Sellers need to invest in technology for a smooth transition from offline to online business. They need advanced e-commerce enablement platforms that facilitate seamless order management, inventory tracking, returns management, and more for an efficient post-purchase journey.

3. Creating a Seamless Omnichannel Experience

Nowadays customers expect the products to be available everywhere be it browsing online or purchasing them in-store. This creates the need for real-time synchronization of inventory between the offline and online sales channels. In Malaysia retailers face this challenge of meeting consumer expectations for product availability and convenience across both online and physical stores.

Solution: To provide a seamless omnichannel experience to your buyers you need to leverage an omnichannel retail management system. With the help of this technology you can seamlessly enable automated updates of inventory levels across all sales channels. This minimizes the risk of stockouts and provides a cohesive experience to your customers.

[Accelerate Your E-commerce Growth with a Cutting-Edge Warehouse Management System]

4. Logistics and Delivery Issues

In Malaysia, delivering products efficiently can be a bit challenging because the country has very different landscapes and roads. Cities have good roads and easy access, but in the countryside, the roads are often bumpy and hard to travel on, making it difficult for shipping providers to reach these areas on time.

Solution: To tackle these challenges, retailers should integrate with third-party logistics that have extensive networks and expertise in Malaysia’s diverse geography. These logistics partners often have established relationships with local delivery companies, particularly in rural areas, ensuring more reliable and efficient delivery services.

Let’s Make Retail Selling Simplified in Malaysia!

The growing retail landscape of Malaysia presents a big opportunity for sellers to innovate and tap into the potential of e-commerce. Now is the perfect time to adopt new strategies and technologies that can take your retail business to new heights.

To survive in this highly competitive market retailers should embrace an omnichannel approach and using advanced tools. This will not only expand their market reach but also ensure superior service delivery and increased profitability.

So what are you waiting for? Start transforming your retail business today to seize the abundant opportunities!

Top E-commerce Marketplaces in Malaysia to Sell Online

Chenxian Fu — Fri, 15 Mar 2024 10:56:52 +0000

Thinking of expanding your business to Southeast Asia? Asian markets have a solid cultural-economic relationship. And it’s a dynamic hub when it comes to the online market. So all you need is to know the right place to sell. In the region, Malaysia is one of the nations that has quickly adapted to technology and has much power and potential in this niche. So, is it the right place to step into? And what will be the right choice of marketplace to begin or expand with. Let’s find out!

We all know how buying anything is just a click away, and the place where the involvement is at its peak is none other than Malaysia. To prove it with facts, it records one of the highest internet penetration rates and the reason behind it is the extensive involvement of the middle class. The question that might come to your mind is, why only Malaysia? The correct answer to it is the marketplaces! Yes, designed with a customer-centric approach and easy-to-use design, it drives the middle class to be involved more on a day-to-day basis hence If I say that Malaysia is experiencing a tremendous e-commerce boom! Then you can definitely consider it as the right place to expand your business.

It’s a perfect opportunity for you to sell and capitalize on. Make your products available at every touch point. Therefore, out of all the available platforms, selling on the right marketplace is very crucial. Here we have listed the top marketplaces in Malaysia that can be beneficial for you to sell.

Top 6 E-commerce Marketplaces in Malaysia

Shopee
Lazada
TikTok Shop
Zalora
PG Mall
Youbeli

Let’s dive into the opportunity of online selling, we have prepared the following list of the top marketplaces in Malaysia to get, set, and jual! (sell)

1. Shopee

Shopee, with its powerful ASEAN presence in the sub-continent, is the first one on the list. Why is it the most popular among the sellers in Malaysia? The reason is that you don’t have to pay any registration fee to start selling. Go ahead and list your product with no registration fee, and the commission fee is also waived for the first 99 orders. Take your time to adjust to the marketplace and understand and plan your strategies. It won’t be a hefty expenditure to start selling on Shopee.

After registering and listing your product, the next most important thing is to promote it. Convert your ideas into revenues. You may think this would require a lot of money, but it’s not! step right in and make the most out of the attractive marketing deals that Shopee has for you. It even provides a live stream platform to access product-related content and interact directly with the sellers. Whether it’s the monthly campaigns or building a seller community, it has everything you need to start selling.

If you wish to bifurcate your audience into the invite-only category, then Shopee Mall also lets you create a retail space for that. Hence it not only offers communication with the seller community but also helps you categorize your audience by making a customer community that is central to the shopee and the seller. The customer-centric approach of this marketplace makes it easier for you to compete in the niche market as well. Sounds like a perfect marketplace, right?

Why should you sell on Shopee, here are the numbers:

Shipping: Fulfillment by Flashexpress (shopee-supported logistics). Some of the partners are Ninja Van, J&T Express, and Instant Delivery.
Monthly web visitors: 96.01 Million
Top selling categories: Home and Living, Health and Beauty, Food, and Beverage

2. Lazada

The next one we have on this list for you is Lazada! Founded by Rocket Internet in 2012 and with a significant appearance in six countries. It’s the customer’s favorite because of the significant discounts and attractive deals. It reaches a vast and diverse audience, which automatically increases the scope for your business to grow. Another reason to choose this as your platform to sell is the Alibaba group. The top-notch framework of Alibaba Group will benefit you in the most profitable way.

Want to step up your game from local to global? To be precise, if you are looking for a safer global reach rooted in the local marketplace, then Lazada can be a great start! It offers three types of selling on its platform. If your vision requires you to go beyond the boundaries, then Lazada will provide you with a purple ribbon and a ‘LazGlobal’ tag, and you are good to go to sell internationally!

We know that these benefits will concern you what if the commission rates are high for this marketplace? Well, for the first three months, you don’t even have to think about paying the commission fee. No matter what category of product you are dealing in. Laza will also offer you an in-house delivery matrix called Lalamove which is an efficient and reliable shipping solution. As this helps to earn customer loyalty, traffic, and exposure, You can easily rely on Lazada for your efficient selling game!

The list of reasons to sell on Lazada is quite significant because we have another thing called Lazcoins. As you start selling on this marketplace, you already have 8000 free seller coins. With this, you can attract more traffic by redeeming the coins based on the cost-per-click model.

Here is why Lazada is a good platform for you to sell

Shipping: In-house delivery matrix Lalamove and other partners like Ninja Van, Kex Express, Sky Net, Best Express, etc.
Monthly web visitors: 35.1 Million
Top categories: Consumer Electronics, Women’s Fashion, Personal Care

3. TikTok Shop

If you are looking for a standout platform to sell that keeps up with the trends, TikTok Shop is the place for you. We all know how those trendy short videos keep us tagged along for a long time, and we always see some products that leave us wondering. Searching for them is a big task, but a marketplace like TikTok makes it all easier for the customers as well as for you to sell.

TikTok shop allows you and different brands to sell products directly via videos, live streams, and product showcase pages. It will give an insightful experience to you about what the customer wants. It is a good platform that supports local SMEs for e-commerce. If you are one of them, then sell well at TikTok Shop!

When it comes to a marketplace like this, authenticity becomes a concern from the customer’s perspective. If your product is correct and you don’t want to lose your authenticity game to the fake-money-making vendors who are there for a short while but gain all the profits, then your TikTok shop is a place for you! You can earn an added stamp of authenticity after going through the approval process and become a consistent and authentic seller at the most profitable platform. This step unveils your potential growth. And even the commission fee will be 0% for the time being as you start to sell with no relation to the number of followers.

Following are the numbers why selling at TikTok is a good choice –

Shipping: TikTok Shop Logistics and some sellers can choose their own shipping carriers
Top Selling Categories: Skincare, Makeup, and Electronics

4. Zalora

Is your target market people of 25-35 years of age who are fashion enthusiasts? Then Zalora has it all for you. A large part of the audience visiting Zalora is their active customers. Isn’t this a great deal as a fashion seller? Providing authentic luxury products is something that Zalora is trusted by its audience. Hence, it can turn into a successful big shot to get exposure to this platform and compete with the brands to make a statement!

Zalora offers two types of business models for you. It’s your choice which one suits you to make your fashion statement more bold! If you want to deal on the wholesale level, you can give your inventory to Zalora, and then they will sell it to the customers. This includes the operational management and inventory management being performed by Zalora itself. But If this is not what you are looking for, you can function over the marketplace model, which will offer you control over the operations and marketing. According to your needs and requirements, a seller can alter the degree of partnership with Zalora.

Let’s see why you should choose to sell in Zalora Malaysia –

Shipping: Ninajavan, 2Go, POS Laju
Monthly web visitors: 59 Million
Top Selling Categories: Fashion, Beauty and Lifestyle

5. PG Mall

If you are already in Malaysia and your plan is to promote local products and handicrafts. Then, congratulations! Your approach lies with PG Mall and it is the right choice to sell here! PG Mall offers a no-registration model, so listing out your products becomes completely free. Along with this, the transactional fee is also at a lower extreme in comparison to the other marketplaces.

Even if you want to upload your products in bulk, you are making a hassle-free choice by selling at PG mall. With the API services and no cost, bulk uploads are another plus feature of PG Mall. They provide both online and offline marketing campaigns for free. Hence you will save a big crunch here, too!

18 nationwide studios and mega seminars, it not only facilitates selling but also emphasizes networking and community building. Sounds like a great deal, right?

Let’s see why PG Mall will benefit you as a seller –

Shipping: Easy Parcel, Aftership
Monthly Web Visitors: 16.8+ Million
Top Selling Categories: Fashion, Electronics, Home and Living

6. Youbeli

Owned by Youbuy Online Sdn Bhd, Youbeli is one of people’s favorite platforms in Malaysia to shop online. One thing that ensures you for this marketplace is no hidden fee model. You don’t have to worry about those annual fees, and no registration fee will mean no registration fee without any hidden tweaks. Here, transparency is not only for the customers but for you as well, so that you can have an easy going functioning to sell!

A multiple-language system and cross-border trading will inculcate benefits both for you and your customers. So, your potential reaches the best by selling at Youbeli. Another plus point is that you can list your product for free. Adding more to its features for sellers, Youbeli also has a 7-working-day settlement period which solves a lot for the back end and helps to gain trust from the customers.

With its fixed amount of a 4% commission fee and 2% payment gateway fee, Youbeli brings transparency for you and not just the customers. As it offers multiple categories, there’s a reasonable probability that it covers your product too. With its amazing deals, Youbeli has a space for you!

Let’s check out some numbers on why Youbeli is a beneficial marketplace to sell –

Shipping: POS Laju, Sky Net, TNT, Aramex
Monthly web Visitors: 113 Thousand
Top selling categories: Babies and Toys, Fashion and Groceries

Are You Ready to Dive Into Selling Online?

With all the available options of marketplaces, we have listed a few that can be a good start for you and if you are an existing seller, they can provide you with new booming opportunities. The online presence plays a vital role in the success of the selling game along with the marketing strategies, getting to know your target audience and how they are evolving with their needs.

To keep up with that, your product and service should also be top-notch. There’s a lot to do in this sense as a seller. So why not make some part of selling hassle-free? A lot from your plate can be taken over by technology, making the functioning smooth and efficient.

The right provider can manage the warehouse, your inventory, and orders with the power of clicks. As a seller, a lot of time and energy is saved from here then can be invested efficiently in other areas. The customer-centric approach is the new avenger approach of online selling, letting the technology solutions handle things at the backend. Malaysia is a dynamic, growing business potential for sellers, and we wish the best for you. Happy selling!