How To Start Dropshipping In Malaysia In 2025
Why start dropshipping
Tired of traditional business hurdles?
Dropshipping is your shortcut to online success from any place of the world.
Skip the inventory headaches, focus on marketing, and watch your profits soar. Start with minimal upfront investment, scale quickly, and reach a global audience.
Our comprehensive resources and expert guidance will empower you to launch a profitable dropshipping store in no time.
From product selection to marketing strategies, we’ve got you covered.
Ready to develop your entrepreneurial potential? You’ve come to the right place to start your dropshipping path.
How dropshipping works
Why start dropshipping in Malaysia
In the captivating realm of Malaysia, a digital adventure awaits for those daring to explore the world of dropshipping. The country’s vibrant ecommerce scene is a testament to its thriving digital economy, presenting a treasure trove of opportunities for online entrepreneurs. As Malaysia embraces the digital revolution with open arms, dropshipping emerges as a strategic and captivating venture, ready to captivate the hearts and minds of its diverse and discerning consumers.
Malaysia’s ecommerce sector is experiencing a remarkable growth spurt, akin to a blossoming flower in spring. The Malaysia Digital Economy Corporation (MDEC) reveals that the internet economy is soaring, with ecommerce taking center stage. This digital transformation is a powerful catalyst, propelling dropshipping businesses into a realm of endless possibilities and connecting them with millions of eager online shoppers across the nation.
The essence of dropshipping in Malaysia lies in its ability to cater to a diverse palette of consumer preferences and cultural influences. With a population as varied as the colors of a vibrant tapestry, Malaysia offers a unique opportunity. Dropshipping entrepreneurs can delight customers by offering a cornucopia of products, from cutting-edge technology to traditional crafts, thus satisfying the eclectic tastes of the Malaysian populace.
Furthermore, Malaysia’s business-friendly environment and robust digital infrastructure provide a solid foundation for entrepreneurial dreams to flourish. The government’s dedication to fostering digital growth and various supportive initiatives create an ideal environment for ecommerce ventures to take root and thrive. As Malaysia continues its digital journey, dropshipping emerges as a captivating and compelling venture, offering a harmonious blend of market potential, cultural diversity, and a nurturing business ecosystem.
Advantages and disadvantages of dropshipping in Malaysia
Advantages of dropshipping in Malaysia
1. Booming ecommerce market
Malaysia’s ecommerce landscape is flourishing, presenting a golden opportunity for dropshipping businesses. The country’s online retail sector is experiencing remarkable growth, fueled by a rising middle class and increasing internet accessibility. According to the Malaysia Digital Economy Corporation (MDEC), the ecommerce market in Malaysia has been expanding at an impressive rate, indicating a thriving environment for online ventures. This burgeoning market provides a vast playground for dropshipping entrepreneurs to showcase their products and services to millions of potential customers.
2. Diverse consumer base
Malaysia’s cultural diversity is a treasure for dropshipping businesses, offering a unique opportunity to cater to various preferences and tastes. With a population of over 32 million people comprising multiple ethnicities, dropshipping entrepreneurs can tap into this rich demographic tapestry. By offering a wide range of products that resonate with different cultural backgrounds and lifestyles, businesses can create a personalized shopping experience, fostering customer loyalty and satisfaction.
3. Digital infrastructure and government support
Malaysia boasts a robust digital infrastructure, providing a solid foundation for ecommerce operations. The country has made significant strides in improving internet connectivity and digital services, ensuring a seamless online shopping experience. Additionally, the government’s proactive approach to digital transformation includes various initiatives and support programs for startups and small businesses. These initiatives, such as grants, training, and business incubators, offer valuable resources for dropshipping entrepreneurs to establish and grow their ventures.
4. Strategic location and trade agreements
Malaysia’s strategic geographical position in Southeast Asia offers logistical advantages for dropshipping. The country serves as a regional trade hub, providing easy access to a vast network of suppliers and markets. Favorable trade agreements and partnerships within the region facilitate smoother cross-border transactions, enabling dropshipping businesses to source products efficiently and reach a larger customer base across Southeast Asia.
5. Digital literacy and social media penetration
Malaysia boasts a high level of digital literacy and social media engagement, which is a significant advantage for dropshipping businesses. The population, particularly the youth, is well-versed in using online platforms and social media networks. This digital savviness facilitates effective online marketing strategies, as businesses can leverage various social media channels to reach and engage their target audience. Influencer marketing and social media advertising can be powerful tools to drive brand awareness and sales.
Disadvantages of dropshipping in Malaysia
1. Market competition and saturation
While the ecommerce market is thriving, it also means that competition is intense. Malaysia’s ecommerce sector is home to numerous established local and international players, making it challenging for new dropshipping businesses to stand out. Differentiating your brand and offering unique value propositions become essential strategies to capture market share.
2. Logistics and delivery management
Efficient logistics and timely delivery are critical for customer satisfaction. In a vast and geographically diverse country like Malaysia, managing shipping and delivery can be complex. Dropshipping businesses need to navigate the challenges of reaching customers in urban and rural areas, potentially requiring partnerships with reliable local logistics providers to ensure prompt and cost-effective delivery.
3. Payment gateway integration
Malaysia’s diverse payment landscape requires dropshipping businesses to offer a range of payment options. While this provides convenience to customers, it also means integrating multiple payment gateways, including local and international solutions. Ensuring secure and seamless payment processes is essential for building customer trust and compliance with local regulations.
4. Cultural and language diversity
Malaysia’s cultural and linguistic diversity, while an advantage, also presents a challenge. Dropshipping businesses need to navigate the nuances of different cultural preferences and languages to create effective marketing strategies and product offerings. Tailoring content and customer support to cater to various ethnic groups can enhance the overall shopping experience and foster a sense of inclusivity.
While some may view dropshipping as a saturated market, the endless possibilities for niche marketing and the ability to tailor products to specific audiences provide a unique opportunity for growth and success.
What to dropship?
How much can you make with dropshipping?
How far you can go with dropshipping: real-life experience
FAQ
Is dropshipping legal in Malaysia?
Yes! When you are dropshipping, you are not ‘fooling’ anyone, and you are not breaking any laws. You are simply helping other people receive the items they want - and enjoy the perfect customer service you provide.
However, pay attention to your choice of products. It is illegal to sell branded, copyrighted items, or things like weapons (even their sports or hunting models), knives, smoking mixtures, etc.
How much money do I need to start?
At least $150 is necessary - let’s do the maths.
If you have some technical skills and can assemble and set up a website yourself, you will need around $150.
First of all, you will need to buy a domain name (a good one costs about $10-15, and you will need to pay this fee every year to prolong your registration).
After that, you need a hosting: a server that makes your store info visible to the Internet user. You can use the basic hosting service from AliDropship (‘Silver Plan’) and only pay $69 per year.
Then, you will need to install WordPress, which is absolutely free, and buy AliDropship plugin, which costs $89. It should be enough: WordPress + AliDropship make a proper basis to create a fully functional dropshipping store.
If you don’t have these technical skills, you can order a ready-made store based on the AliDropship plugin. It will be made for you personally by an expert team: the specialists will even add the first products to your store. So, technically, it will be ready to sell items from day 1. The basic ready-made dropshipping store costs $299; together with the annual domain fee, you will have to pay $310-315 to launch your business.
How to choose the store niche?
First, it should be something that you really like - or, at least, know deeply. You will be picking products, making advertisements, and advising customers, so you absolutely need to be a pro in this.
Also, this niche should be popular with buyers and easy to promote online. Here is a complete niche selection guide that will help you!
What country to target?
Living in Malaysia, you are not limited to your local market. You can serve customers all over the globe, even in the countries of Europe and North America. Remember your store niche and think who might be interested in these products. Where do these people live, most likely? That’s your target region!
Where to find the products?
AliDropship plugin lets you easily import products on your dropshipping website. Basically, it transfers the products’ titles, descriptions and images in a single click. So, all you need to do is browse and find good quality products from reputable sellers.
Alternatively, you can use a database of over 50,000 selected products which are guaranteed to be in high demand. This database is available within AliDropship plugin: you can see it when you go to the Import section of your AliDropship-based store. The best part is that all the products’ titles and descriptions are already edited there, so you won’t spend your own time doing this yourself.
If I sell products, how can I compete with itself?
AliExpress is a large shopping platform where sellers offer everything at once. At the same time, your niche dropshipping store is focused on a specific range of products. Surely, you are more client-oriented than a large-scale store, and this is why buyers will choose you over.
Will my buyers know they are actually buying items?
It’s not likely. Even if they see Chinese names/addresses/characters on the wrapping paper, it won’t tell them anything. Lots of warehouses and manufacturing facilities of the largest global companies are situated in China, so there is nothing strange if a buyer receives a package of the Chinese origin.
Also, you can write your suppliers directly and ask them not to put any promotional materials into the package. Sellers are always glad to partner with dropshipping store owners because this partnership is profitable, so they will be happy to help you.
Will my buyers agree to a long delivery?
Long delivery itself isn’t a problem. Your customers are not buying life critical items from you, so they don’t mind waiting - especially, if you offer them an appealing price and a low-cost shipping.
Besides, you can choose the ePacket delivery method which cuts up the delivery time significantly. With ePacket, it will take the packages 7-15 days to arrive.
What if a buyer asks me for a refund?
Refunds are the responsibility of the original suppliers. Usually, they refund low-cost purchases really quickly, so there is nothing for you to worry about.
How to promote the store?
To make profit from your store, you first of all need to attract traffic to it. There are lots of ways to promote your store online for free, so pick the ones you personally like. Also, read the free marketing tips for dropshipping business: an experienced team brings them to you every week!
Will WordPress or AliDropship limit my activity and charge business fees?
No. The only recurring fee is the domain fee - you will have to pay for it every year, otherwise, your site won’t be visible on the Internet.
WordPress is completely free, and all the AliDropship solutions only require a one-time payment. Whatever AliDropship tool or service you get, you remain a full owner of your business. There are no limits on the amount of orders you can accept, or the volume of profit you make, or the quantity and the content of the products you import, etc. You are your own boss!
Free Dropshipping Guide
