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Your Own Online Store vs Shopee & Lazada: A Guide for Malaysian SMEs

Marketplaces bring traffic; your own e-commerce website brings control, customer data and brand loyalty. How Malaysian SMEs can use both, and when to start.

By LWA Digital Team6 min read

Own online store vs Shopee and Lazada in Malaysia

E-commerce is now a core part of Malaysia's economy. According to the Department of Statistics Malaysia (DOSM), e-commerce income grew 8.8% to RM1.29 trillion in 2024. For a small or medium business, the question is no longer whether to sell online, but where: on marketplaces such as Shopee and Lazada, on your own e-commerce website, or both.

What marketplaces do well

  • Built-in traffic — millions of shoppers already browse and search there.
  • Fast set-up — list products and start selling quickly.
  • Familiar checkout and campaigns — shoppers trust the platform's payments and big sale days.

Where marketplaces hold you back

  • You rent the space. Rules, fees and search algorithms can change at any time.
  • You compete side by side with similar products, often on price alone.
  • You don't own the relationship. Customer contact details and data largely stay with the platform, which makes repeat marketing harder.
  • Your brand is in the background. Shoppers remember the platform, not always the shop.

What your own e-commerce website gives you

An online store on your own domain is a long-term asset. You control the design, the product story, the pricing and the customer experience. You also collect customer accounts and order history, which lets you run email campaigns, loyalty offers and promotions without paying for every visit again.

  • A fully branded shopping experience that matches your business
  • Customer accounts, order history and your own customer list
  • Discount codes and promotions on your terms
  • Product pages that can rank on Google and appear in AI search answers

The best answer for most SMEs: use both

Treat marketplaces as a shop window and your website as your flagship store. Use marketplaces to be discovered, then give customers a reason to buy direct next time — a member discount, exclusive bundles or better after-sales service. Over time, more of your repeat sales move to the channel you control.

What to plan before you build your store

  1. Product range — how many products and variants (size, colour) you will start with.
  2. Admin dashboard — who will manage products, stock, orders and customer enquiries day to day.
  3. Payments — a payment gateway, or a simpler option if you are just starting.
  4. Delivery — shipping zones, rates and couriers.
  5. Reports — the sales figures you want to see each week.

We build fully custom online stores with an easy admin dashboard. Compare our e-commerce website packages or see our e-commerce services.

Sources

  1. Business Today — Malaysia's e-commerce income hits RM1.29 trillion in 2024 (DOSM data)
  2. DOSM — Usage of ICT & e-Commerce by Establishment

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