Photo - Mei Inn Wong, Malaysia CBT Country Head, eBay Malaysia.
According to a new consumer insights survey from online marketplace eBay, Malaysia's auto parts industry will benefit from cross border trading (CBT) ecommerce opportunities.
eBay Malaysia CBT country head Mei Inn Wong said the survey showed 47 percent of US vehicle owners have purchased automotive parts and accessories (P&A) online, and that 23 percent are likely to do so in the future.
This is a promising opportunity for Malaysian P&A vendors to come online and embrace e-commerce as a means of growing a global revenue stream, said Wong, adding that auto parts was also one of the top categories for Malaysia's retail exporters on eBay with the U.S. as the number one destination market.
This presents a huge opportunity for Malaysian P&A vendors to set up their online presence and to focus on cross border trade. According to the Export-Import Bank of Malaysia, the total export of automotive products have grown steadily for the past five years, she said.
Wong said 67 percent of consumers have conducted research on vehicles via their mobile devices, with one in five saying that they 'always' or 'very often' do so. "This is an opportunity for Malaysian automotive retail entrepreneurs and vendors to use eBay as a platform for their business. eBay also provides local entrepreneurs access to foreign markets with low entry barriers - making it easier for them to tap into these markets."
"Auto parts export is a fast growing category on eBay. Together with eBay's seller education and development programs, the time is right for local auto-parts sellers to start venturing into exports to drive more revenue. It gives opportunities to auto-parts retailers, from entrepreneurs to manufacturers to penetrate the global market," she said.
In addition, eBay allowed commercial sellers to export their products worldwide through its business and consumer online sales services, said Wong, pointing to the local example of Selangor-based Jdm-motorparts, which has leveraged eBay as their business platform to expand globally.
According to a Jdm-motorparts statement: "We have been selling on eBay for five years and eBay has helped in promoting our products to clients all over the world. With the help of eBay, our sales have gone up 30-40 percent."
eBay's Wong said Malaysia's national eUsahawan programme, an initiative aimed to elevate and develop digital entrepreneurship, wanted to help grow the national ecommerce sector from an estimated RM72 (US$16.60) billion in 2015 to RM88 (US$20.29) billion by end 2016.
"eBay is committed to working together with the Malaysian government to encourage SMEs' participation in export business via e-commerce," she said.
Some of the other key findings from the survey include:
- 64 percent of buyers are DIYers (Do-It-Yourself) who installed the parts they bought online themselves
- 22 percent of buyers are DIFMers (Do-it-for-Me) who brought the parts they purchased online to a repair shop and/or dealership to perform the installation
- 14 percent of buyers are both DIYers/DIFMers
- 2 in 5 women have purchased auto parts online, and more than half of them install the parts themselves
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