3 insights reveal why brand websites and marketplaces will continue to coexist in Malaysia

This post was done in partnership with Google Malaysia.

As lockdowns persist and physical stores remain closed in Malaysia, the spotlight continues to shine on the online retail scene, with local eCommerce revenue growing by 87%¹ from 2019 to 2020 alone.

The multitude of online retail touch-points, combined with Malaysian shoppers going the extra mile to research before buying, has proven that brands must show up and guide shoppers along the purchase journey regardless of where the final purchase happens.

While marketplaces are extremely popular with shopping festivals and attractive deals, individual brand websites remain relatively nascent in comparison due to a higher operational effort required from brands.

However, research from a “Google x IPSOS x Sixth Factor” study has revealed that brand websites play a key role in complementing marketplaces when it comes to influencing shoppers’ purchasing decisions. As shoppers hop across buying platforms, Google Search bridges the gaps, and is a touch-point shoppers keep returning to in their path to purchase.

Below, three key insights show how brands can leverage various touch-points to influence shoppers across the purchase journey. 

1. Malaysian shoppers hop across both brand websites and marketplaces to explore and look for key product information

In the initial phase of the purchase journey, shoppers are browsing and exploring available options. Shoppers lookout for price and reviews in their preliminary assessment before delving deeper into specific details.

Marketplaces give shoppers the breadth of choice and an overview of what is out there – with more than 73%² of shoppers using marketplaces in the exploration phase primarily to check out price deals and promotions. 

While brand websites immediately provide shoppers with clear and direct information – almost half of the shoppers surveyed felt that brand websites didn’t allow them to fully understand the brand.

2. Malaysian shoppers look for deals in the evaluation stage but are willing to pay more for expensive products if they have all the right information

Making an informed choice amid a sea of options is critical to shoppers. While 64% of shoppers turn to marketplaces because of promotions and discounts, 59% of shoppers still turn to brand websites for clear information needed for evaluation.

The option to easily compare everything in one place is a key reason why 32% of shoppers turn to marketplaces in the evaluation stage.

“I find the specs and colours options clearer on brand.com. It is much easier to compare the colours and check the dimensions … product specifications are a lot more reliable.” – MY marketplace shopper

Shoppers will go the extra mile with research when it comes to expensive products such as home appliances and consumer technology. Search helps shoppers make sense of information, acting as a bridge as shoppers hop across platforms to research.

As shoppers seek more assurances when shopping online, brand websites have an even larger influence when it comes to expensive products – with more shoppers purchasing directly on brand websites themselves, or relying on brand websites for detailed information before purchasing elsewhere.

3. Shoppers seek assurance and support that help them mitigate risks before making the final purchase

While shoppers turn to marketplaces for last-minute deals such as price discounts (58%) and flash sales (28%) to seal the purchase, up to 38% of shoppers had doubts around product authenticity.

Brand websites complement marketplaces by providing assurance and support to shoppers. About 69% of shoppers purchased on brand websites because of quality guarantee, while another 32% were assured by the warranty that brand websites provided – indicating that after-sales service is as important as a good deal.

“If the price is the same, I like to buy from the brand website instead … I feel more satisfied, exclusive and premium ...” – MY brand website shopper

Brand websites and marketplaces will continue to coexist in an online environment, and shoppers will use these interchangeably as they explore, evaluate and purchase.

• Brands can support the exploration journey of shoppers by surfacing relevant information that immediately matches their queries. Highlighting clear product information and deals will help shoppers establish a direct connection with brands from the start of their purchase journey.
• Beyond visibility, reliable information, reviews and guarantees around product quality and authenticity are ways brands can support shoppers, especially when it comes to higher-priced items.
• Finally, brands can provide the assurance that will help shoppers make a purchase decision. Last-minute deals, as well as after-sales support, can encourage shoppers by mitigating the risks that may come with online purchases.

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Sources: Google, IPSOS, and Sixth Factor, Brand.com and Marketplace in the evolving online path to purchase, January 2021.