Delivery Pricing Measures Must Address Realities Faced By Small Online Sellers Says Micro Businesses Group

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THE Malaysian Micro Business Association (Mamba) has expressed concern over recent discussions to introduce minimum delivery rates as a means to stabilise the logistics sector.
Mamba secretary-general Alvin Low said while conversations on sustainability and fair pricing in logistics are crucial, focusing narrowly on rates without considering the operating realities on the ground risks overlooking the real challenges faced by small online sellers.
“For micro and small sellers, delivery performance is not merely a cost item, it affects conversion rates, customer trust, repeat business, and the time spent on complaints and issue resolution,” he stressed.
“Many sellers continue to experience inconsistent pickup times, unpredictable parcel routing and long dispute resolution processes.
“When service failures occur, buyers rarely distinguish between courier and seller. It is the seller who absorbs the frustration, refunds, reputational damage and loss of customer confidence.”
According to Low, most sellers today operate across multiple online marketplaces, each with differing delivery defaults and promotional mechanics.
When delivery fees increase, sellers have limited ability to pass those charges on without losing competitiveness. The result is either further margin compression or more cautious consumer behaviour when checkout costs rise.
History shows that rising costs without improvements in service quality can backfire: small businesses struggle, demand weakens, and the situation deteriorates rather than strengthens.
“This is why proposals framed solely around pricing have been poorly received among the microbusiness community. Sellers are already balancing competitive pricing, heightened consumer expectations and uneven delivery performance,” he stated.
“Pricing measures, implemented without structural change, risk shifting the burden onto sellers and consumers who have limited control over courier operations.”
If the real issues are competitiveness, scale, or uneven market dynamics, Low urged policymakers and industry stakeholders to address these openly and directly. Pricing alone, he reckoned, will not resolve systemic inefficiencies.
“Small sellers are not opposed to reform, but they expect clarity, proportionality and a genuine focus on reliability, accountability and service improvements,” he continued.
“As conversations around logistics reform continue, MAMBA calls for transparent proposals and stakeholder engagement that reflect the day-to-day realities of the digital economy.
“For small online businesses, logistics is not a peripheral concern it is central to their viability and long-term sustainability.”  - Focus Malaysia

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