Rising delivery costs and problems: a homegrown business owner’s perspective

From Kho Yit Wee

I recently read that the government expects our courier and parcel service market to hit an impressive US$1.58 billion (RM6.98 billion) by 2025, thanks to the growth of e-commerce.

But behind those big numbers is a different story — a tough reality for many of us trying to keep our small businesses afloat.

As the owner of a homegrown business in Malaysia, I am feeling the squeeze from rising delivery costs and delivery problems that make it harder for enterprises like mine to thrive.

When I first started doing business online, my vision was to offer high-quality self-care products that are both environmentally friendly and accessible to everyone.

At its core, Commodité is about more than just products. It’s about building a community grounded in shared human experiences that transcend gender boundaries.

Even with a commitment to premium quality, the heart of Commodité lies in ensuring all products remain affordable, because everyone deserves the right to feel cared for.

As much as we envisioned everything falling perfectly into place, the reality has been more challenging than we imagined.

Sometimes, I hear customers share their frustration over delivery delays, a lack of communication with logistics providers and inconvenient scheduling that disrupts their experience.

When I came across a recent survey by Milieu Insight — a social media monitoring service — stating that for over 52% of micro, small and medium enterprises (MSMEs), shipping accounted for more than 10% of their operational costs, I wasn’t surprised.

It hit close to home, knowing so many others are dealing with the same challenges I face.

I’ve also seen news suggesting that some logistics players are actively lobbying the government for industry-wide changes, including advocating for a floor price for parcels.

In other words, this could lead to higher shipping costs, particularly for those of us who depend on affordable shipping options to stay competitive in an increasingly challenging market.

For a small business with tight margins, that’s a huge chunk of money going straight into shipping. We are faced with a difficult choice: do we absorb these extra costs or pass them on to our customers?

Neither option is sustainable. And as a seller, even if I ensure that my products meet the customers’ standards, a single delivery mishap can undo all my hard work, especially if it leads to a bad review.

Like my customers, I just want the goods delivered on time and intact. And to be fair, some logistics providers are trying to improve.

We see some online platforms offering on-time delivery guarantees, options for same-day service and self-collection points.

These are good developments for online merchants and customers, but they are not enough.

We should not be left to guess whether or not our packages will be sent as promised.

As we look to a future of a booming parcel service market, I urge the authorities not to forget us — the small businesses that make up a large proportion of Malaysia’s digital economy.

For the courier industry to truly serve our needs, it’s going to take coordinated action from everyone involved.

I believe logistics providers, sellers, platforms and regulators must come together to create fair, reliable standards that work for all businesses, big and small.

So, to those who shape the logistics ecosystem in Malaysia, I ask that you prioritise affordable and dependable delivery services.

It’s not just about supporting the growth of our e-commerce sector — it’s about making sure that every small business has a fair chance to succeed and that every Malaysian can shop online with confidence.

Kho Yit Wee is the founder of personal care brand Commodité.

The views expressed are those of the writer and do not necessarily reflect those of FMT.

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