“Operating from a shop lot, parking can be an issue for customers,” he told FMT.
“We wanted to serve more people and tap into underserved markets beyond Taman Desa, rather than limiting ourselves to just a 1km radius.”
With the help of third-party logistics providers or 3PL, Charlie’s Cafe was able to expand and serve customers as far as 5km away.
“Through platforms like Grab, we have gained better visibility and have been able to reach and serve a larger customer base. These platforms usually have promotional campaigns and offers, so these have helped us attract customers to try our food,” he said.
Desonny is one of many small business owners who have leveraged 3PLs to take their businesses to the next level.
Logistics key to e-commerce growth
Nick Chong of the Center for Market Education said small businesses reap significant benefits from 3PLs such as Shopee, Lazada and Grab.
“Previously, these businesses were limited to brick-and-mortar operations. However, they can now sell their goods anywhere in Malaysia and even overseas with these platforms,” he said.
In 2021, e-commerce sales in Malaysia hit RM31.9 billion, according to analytics firm GlobalData.
The country’s e-commerce market is estimated to register a growth of 16.1% between 2022 and 2026, to reach a total value of RM69.3 billion in 2026.
Chong said these platforms empower sellers to thrive by enabling them to achieve economies of scale through larger orders, while simultaneously alleviating concerns related to delivery and customer support.
These platforms also offer valuable guidance on customs formalities, pick-and-pack requirements, inventory levels and data analysis.
He said this is crucial for many small- and medium-sized enterprises as they often lack the knowledge and expertise in these areas.
“Big logistics players like Shopee, Lazada and Grab also have the capacity to help businesses expand to international markets,” he said.
‘Big players, big opportunities’
The 3PLs, especially bigger players, have resolved the main logistical problems for businesses, namely the first- and last-mile connections, including the ability to go into underserved areas.
“The big players, in particular, don’t just address gaps in transportation and delivery, but also in packaging, warehousing and order fulfilment, becoming a one-stop solution,” said one logistics industry player who declined to be named.
The source said the big players brought with them “big opportunities”, from job creation to knowledge and technology transfers.
“But the big question is whether our ecosystem fully allows the big players to maximise their potential.
“This is something the government must look into because a robust logistics and e-commerce industry is vital to the country’s economic recovery. We can’t afford missed opportunities.”