Social commerce in Malaysia is expected to grow by 31.1% on an annual basis to reach US$1408.1 million in 2023, with 65% of consumers in Malaysia using social media as a platform for brand and product research before purchasing.

Through social commerce, brands can sell products directly on social media, with the potential of reaching as much as 65% of consumers in Malaysia. Brands can be strategic and use social commerce to achieve much more beyond increased sales.

In this article, we will delve into the advantages that social commerce can bring to businesses in Malaysia, and how you can make the most of this powerful platform.

What is Social Commerce

Social commerce is the practice of directly selling products through popular social media platforms such as Facebook, Instagram, and TikTok. This enables customers to make purchases conveniently while browsing these platforms.

One of the key advantages of social commerce is its ability to expedite the buyer journey. Businesses can leverage their presence on social media to guide customers through the entire process of product discovery, research, and ultimately, making a purchase. In essence, social commerce facilitates quick and instantaneous decision-making for customers.

According to a Facebook report from 2021, there is a noticeable increase in consumer demand for a seamless experience of discovering and purchasing products on the same platform. This is attributed to the rising popularity of social media in Southeast Asia and the desire for direct, two-way communication. In fact, 37% of consumers have identified social media as their preferred channel for product discovery.

Social media channels have now become integral to every user's buying journey, particularly during the discovery phase where they play a dominant role. Consequently, they have emerged as powerful tools for social merchants to acquire customers, establish trust, forge connections, and encourage repeat purchases.

Why do Malaysians love Social Commerce?

Convenience is a key factor that drives customers in Malaysia toward social commerce. With social media being part of their daily routine, it becomes effortless to do research on the products, engagement from other customers with the brand, and how are the reviews of the brand to decide whether they should choose to purchase.

By making purchases on social media, customers can quickly and easily buy products or services without having to switch between different platforms or websites. Hence, that seamless buyer journey becomes the key element for social commerce’s popularity.

3 Reasons to consider social commerce for your business

1. Personalized Marketing

A recent study shows that 79% of consumers are more likely to engage with brands that provide recommendations and offers that match their needs.

Social commerce presents an opportunity to enhance the customer experience by adding a personal touch. By utilizing social commerce data, businesses can analyze customers' buying behaviors and purchasing patterns. This valuable information enables them to create highly targeted and personalized marketing strategies tailored to customers' specific interests. As a result, businesses can provide a more customized experience that resonates with individual customers, leading to improved customer experience, satisfaction, and loyalty.

2. Higher conversion rates

According to a survey by PwC Malaysia, a significant 47% of online shoppers in Malaysia make purchases through social media channels; further highlighting the immense potential of social commerce for businesses in Malaysia.

With social commerce, businesses can leverage the convenience of social media to eliminate the need for customers to navigate to a separate website, making the buying process fast and easy.

This can lead to a higher conversion rate and greater revenue for businesses, as they tap into a sizable market of customers who prefer to shop through social media.

Additionally, another feature in social commerce that is rapidly growing in Malaysia which businesses can adopt as a new way to increase conversions is Live Commerce. Check out Unlocking New Growth Opportunities With Live Commerce to learn more.

3. Staying Competitive

According to a study conducted in 2017, it was found that 65% of businesses in Malaysia had intentions to integrate social media into their strategies. Fast forward six years, and social media has become an essential component of nearly every e-commerce strategy, with Malaysia emerging as one of the leading proponents of social commerce. In fact, during the first two quarters of 2021, the Southeast Asia region experienced a remarkable growth of over 85% in revenue per order in social commerce. The adoption of social commerce has enabled merchants to maintain their competitiveness in this rapidly evolving industry.

PichaEats, a prominent example of success in social commerce, has leveraged this platform as its primary channel for selling food products. Established in 2016, PichaEats has amassed an impressive following of over 60,000 on social media. Their achievements have been recognized by renowned media outlets such as The Guardian, BBC, and Forbes, who have featured their story.

PichaEats has achieved popularity among Malaysian users by establishing a robust brand presence, actively engaging with customers, and streamlining the order process. The success of social commerce has played a pivotal role in driving its growth in Malaysia.

For Malaysian businesses, it is crucial to recognize the importance of adopting social commerce promptly in order to remain relevant and competitive in today's digital age. By embracing social commerce, businesses can capitalize on the expanding market in Malaysia and position themselves for sustained profitability.

Stay tuned for our upcoming article, where we will delve into four effective strategies that businesses can employ to optimize their social commerce endeavors and propel their revenues to new heights.

How to optimize for social commerce?

Despite the numerous benefits that businesses can derive from social commerce, they often encounter a significant challenge: the constant distractions inherent in social media usage. According to a study conducted by Pew Research Center, 46% of adult social media users admitted to sometimes or often losing track of time while on these platforms.

This fast-paced nature can prove advantageous and detrimental to merchants. On one hand, it allows them to quickly reach and engage with customers, potentially leading to increased sales. On the other hand, the ever-evolving landscape of social media platforms and customer behaviors can make it challenging for merchants to stay abreast and effectively utilize these channels. If the checkout process is not swift enough, there is a high likelihood that users may become sidetracked by the next appealing thing they encounter, leaving the store or, even worse, the purchasing journey in the process.

Consequently, it is crucial for merchants to ensure that their payment solution is seamless, secure, and expeditious enough to sustain their customers' interest in their brand and products. If you are currently in the process of selecting a payment gateway for your business, explore our comprehensive guide, Payment Gateway 101, for expert insights and guidance.

Trusted by over 20,000 businesses across Southeast Asia, Japan and the U.S., Opn Payments can helps brands create a smooth and secure checkout experience for social commerce.

Contact us for any questions about payment services. Opn Payments support team is available to help you.