Shipping from the US to Malaysia with Speedcommerce

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Expanding your eCommerce business to Malaysia is easy with Speed Commerce. Today’s eCommerce company has the opportunity to penetrate many markets and the eCommerce market has matured nicely and been steadily expanding in Malaysia.

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There are basically two ways to approach addressing eCommerce order fulfillment for your Malaysian customer. If your business is significant enough to handle a presence in Malaysia, then partnering with a local 3PL is the best course of action. Your biggest obstacle is capital resources as carrying the additional inventory in another country will require additional capital.

The second and most common way, especially for most eCommerce companies is to partner with a U.S. based 3PL provider that can support both your U.S. and Malaysian based customers. Shipping items from the United States to Malaysia involves several steps and considerations, including choosing the right shipping method, handling customs requirements, and ensuring your items arrive safely.

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Introduction

The Malaysian ecommerce market has been growing rapidly and shows a promising future. Here are some key points:

• The Malaysian ecommerce market size is expected to grow from USD 7.11 billion in 2023 to USD 14.32 billion by 2028, at a CAGR of 13.49% during the forecast period.
• Malaysia has a high ecommerce adoption rate, aided by a sizable population of active internet users (27.4 million, or 80%) and high mobile phone penetration (84.2%) in the previous year.
• The Malaysian government has been proactive in supporting and nurturing the ecommerce industry. Initiatives such as the Digital Free Trade Zone (DFTZ) and the Digital Economy Blueprint have provided a conducive environment for ecommerce businesses to thrive.
• The current state of the Malaysian ecommerce market started taking shape in 2012 when two major players Lazada and Zalora launched their Malaysian operation, followed by Shopee in 2015.
• The Malaysian ecommerce market is set to grow 19.9 percent to reach MYR 38.2 billion (USD 9.2 billion) in 2022, on the back of the nation’s rapidly growing shift from offline to online purchasing.
• Malaysia is the 33rd largest market for eCommerce with a predicted revenue of US$8,567.7 million by 2023, placing it ahead of Chile.

Choosing a Cost-Effective Shipping Carrier

Choosing a cost-effective shipping carrier from the U.S. to Malaysia depends on various factors such as the size and weight of the package, delivery speed, and additional services like tracking and insurance. Here are some options:

• USPS Priority Mail is generally the cheapest option for 2–3-day shipping.
• USPS offers flat rate box shipping to Malaysia for delivery within 6 to 10 days.
• DHL Express Worldwide offers delivery within 1-4 business days.
• FedEx Cross Border Tracked offers delivery within 6-10 business days.
• FedEx Priority and FedEx Economy are more expensive but suitable for those that want to enjoy the content of the package as soon as possible.
• UPS Worldwide Express offers delivery within 1-3 business days.
• UPS Worldwide Express Plus offers delivery within 3-4 business days.

Evaluating Shipping Carriers

Here’s a comparison of key U.S. carriers for shipping to Malaysia:

• USPS is the most affordable option for small and lightweight packages.
• USPS Priority Mail is generally the cheapest option for 2–3-day shipping.
• USPS offers flat rate box shipping to Malaysia for delivery within 6 to 10 days.
• DHL Express Worldwide offers delivery within 1-4 business days.
• DHL is an affordable service, plus it’s delivered by the end of the next possible business day.
• FedEx Cross Border Tracked offers delivery within 6-10 business days.
• FedEx Priority and FedEx Economy are more expensive but suitable for those that want to enjoy the content of the package as soon as possible.
• FedEx International Priority typically ships in 3 business days.
• UPS Worldwide Express offers delivery within 1-3 business days.
• UPS Worldwide Express Plus offers delivery within 3-4 business days.

Please note that these are general estimates and actual costs and delivery times may vary. It’s always best to check directly with the carrier for the most accurate information.

What We Do

Receiving

The inbound shipping team with Speed Commerce is ready to receive, inspect, enter into inventory, and place your products on the shelves, ready for the warehouse team to pick products for your orders.

Picking & Packing

Accurate assembly of ecommerce orders can make or break your business. Our team goes the extra mile to ensure orders are assembled correctly, packed with care, accurately labeled, and sent to shipping on time.

Shipping

Because of our shipping volume to and from our facilities, we have established relationships with major carriers and negotiated favorable rates. Ensuring your orders are received by the carrier as expected is our top priority.

Inventory Management

Making sure you have enough stock on hand (but not too much) takes expertise in ecommerce retail trends. We work closely with our clients and their Speed Commerce client success manager to anticipate spikes or dips in demand. Our team also manages monthly inventory reporting and takes measures to avoid shrinkage.

Cross-Docking

Need to expedite order fulfillment to meet unexpected high-demand? We’re experts in cross-docking. Our team is agile and can quickly receive (and complete their inbound checklist) on the dock, then our pick-pack team will quickly assemble orders and prepare for shipment. We don’t waste time putting items on the shelves; instead we get them out the door!

Returns Management

Get your reverse logistics under control. We manage the full end-to-end process of returned product, including refreshing and reviving! Reducing shrinkage and get your product back out the door generating profit with our returns management service.

Long-Term Storage

Store your inventory in our safe and secure warehouse and gain flexibility you need in your operations. We have space for your long-term storage needs. Centrally located, our warehouses are ideally situated to give you access to your inventory in a secured location. We offer transparent pricing, quick start, and flexible terms.

Managed Services

We remove the headaches in managing your ecommerce fulfillment and warehousing operation. We work with you to learn what’s important to you and craft our agreements to match your expectations. You’ll meet with your client account manager regularly to review our performance and make adjustments.

Speed

Your customers want their orders delivered quickly. In ecommerce, fast order fulfillment is a must! We live up to our name and ensure speed in everything we do. Same-day fulfillment gets your orders packed and shipped shortly after your customer makes their purchase.

Shipping to Malaysia with Speedcommerce

Choosing the best shipping carrier for international shipping requires careful consideration of several factors. The choice you make can impact your business’s efficiency, customer satisfaction, and overall cost. Here are some key factors that Speed Commerce suggests that you choose when determining which shipping carrier to pick for international shipping:

1. Does the carrier cover the specific countries and regions you need to ship to. Some carriers may have more extensive international networks than others.
2. Does the carrier offer transit times that meet your customers’ expectations?
3. Compare the shipping rates offered by different carriers. Keep in mind that the cost can vary based on the destination, package weight, and dimensions.
4. At Speed Commerce we only recommend carriers that have a reputation for reliability and on-time deliveries that meet our standards.
5. International shipments often involve customs procedures. We integrate with our recommended carriers so that you don’t have to check whether the carrier provides assistance with customs documentation and clearance or if you need to handle it yourself.
6. All of the recommended carriers offer good tracking and shipment visibility, which are essential for both you and your customers.
7. All of our selected carriers offer quality customer support.
8. We take the guesswork out of the packaging requirements to ensure it complies with all carrier regulations.
9. Speed Commerce ensures that the carrier complies with international shipping regulations and is familiar with export/import rules for the countries you are shipping to.
10. Lastly, consider your returns requirements to determine if they align with how the carrier handles returns from international customers. 

By carefully considering these factors, you can make an informed decision when selecting the best shipping carrier for your international shipping needs. It’s often a good practice to periodically review your choice of carrier to ensure it continues to meet your evolving requirements.

Duties and Taxes when Shipping to Malaysia

When shipping to Malaysia, you should be aware of the following duties and taxes:

• Malaysia’s custom tariffs are typically imposed on a value-add basis, with a simple average applied tariff of 6.1% for industrial goods. However, duty rates in Malaysia vary from 0% to 50%, with an average duty rate of 5.74%. Approximately 75% of imports into Malaysia are not subject to customs duties.
• Malaysia is a partner to seven bilateral FTAs and seven regional FTAs, including the ASEAN Free Trade Area. These FTAs allow for lower or zero customs taxes for businesses in Malaysia that wish to import or export goods.
• Goods imported into Malaysia are subjected to a Sales & Service Tax of 10%, and these goods can be anything from food items to electronics. However, some goods are taxed at the reduced rate of 5%, while others are completely exempt from sales tax.
• Some food items might be subjected to an extra Malaysian Custom Excise import duty, such as a 15% tax on specific types of beverages.
• Exemptions for non-controlled and non-restricted items with a CIF value of below RM500, no duties and taxes will be imposed. This is referred to as a de minimis value.

Please note that these rates can vary depending on the type of goods and the country they’re imported from. It’s always a good idea to check the latest regulations before shipping. A great resource is dhl.com.

Customs Procedures in Malaysia

When shipping products to Malaysia, you need to follow these customs procedures:

Examination of Customs Paperwork: You need to prepare the necessary shipping documents for your goods to successfully clear import and export customs. These documents include:

1. Import declaration (Custom Form No.1)
2. Commercial invoice
3. Bill of Lading
4. Packing list
5. Certificate of Origin
6. Purchase invoice
7. Delivery letter
8. Insurance certificate
9. Air Way Bill
10. Import permit (if applicable)

You need to calculate and pay import duties, excise duties, sales & service tax (SST), and Goods and Services Tax (GST). Malaysian import tax usually ranges between 5 to 10%.

After preparing the necessary documents, you need to submit them to the customs authorities for inspection. Only upon the submission of the right documentation will your goods be successfully cleared by customs officials along the supply chain route.

Make sure you comply with all regulations and restrictions related to your goods. Some items may require an import permit.

Please note that all shipments are subject to 100% Customs examination. It’s always a good idea to check the latest regulations before shipping. You might also find this guide helpful for understanding Malaysia’s customs clearance process.

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Tips for Ecommerce Businesses Shipping to Malaysia

Here are some tips for eCommerce businesses shipping to Malaysia:

1. Choose a shipping partner that understands the local market and has a strong network in Malaysia.
2. Malaysia’s economy and infrastructure make it a good candidate for eCommerce expansion. So, understanding the local market, consumer behavior, and popular online marketplaces can be beneficial.
3. Ensure your goods are packaged properly to prevent damage during transit.
4. Choose the right level of service based on your business needs and customer expectations.
5. Provide accurate shipment details to avoid delays in customs clearance.
6. Prepare and attach the necessary shipping labels and documents to your package. This includes import declaration, commercial invoice, bill of lading, packing list, certificate of origin, purchase invoice, delivery letter, insurance certificate, air waybill, and import permit (if applicable).
7. Be aware of the duties and taxes when shipping to Malaysia. This includes custom tariffs, sales & service tax, Malaysian Custom Excise import duty, and any exemptions.
8. Ensure you comply with all regulations and restrictions related to your goods. Some items may require an import permit. 

Remember, all shipments are subject to 100% Customs examination. It’s always a good idea to check the latest regulations before shipping.