In recent years, digital marketing has been a trending topic in Malaysia. The growth of e-commerce in Malaysia is one of the biggest drivers for this trend. The fact that e-commerce makes up a significant portion of the country’s GDP is a strong indicator of millions of online shoppers taking advantage of most selling items in Malaysia and discounts available online.
The popularity can be associated with several factors, one being the rise in internet penetration from 75 percent in 2014 to 88 percent in 2018 across the country. Notably, young Malaysians aged 18-24 dominate the digital landscape, with 84 percent having visited online shopping sites.
Affiliate Marketing and E-commerce – A Match Made in Heaven:
According to statistics, e-commerce revenue in Malaysia is projected to reach a total of $4,179 million in 2020 and is forecast to grow at an annual growth rate of 17.8 percent (CAGR 2020-2024). There is no doubt that e-commerce and affiliate marketing go hand in hand, especially in marketplaces like Malaysia.
Online marketplaces also help keep track of stock levels, ensuring enough supplies for purchases, especially of most selling items in Malaysia, as they are able to draw a generalized analysis of the prevailing market trend. Affiliate marketers help bring in traffic to marketplaces, while the latter helps affiliate marketers monetize this traffic. Marketplaces allow people to discover products, and affiliate marketers make it easy for consumers to click on referral links and purchase.
Here are four main types of marketplaces in Malaysia.
E-commerce Platforms:
E-commerce platforms are websites where people can both buy and sell products quickly. Popular ones are 11street, Mudah. my, Carigold, and TheGemHorse. Marketplace commissions are calculated based on the commission rate set by the merchant, with e-commerce platforms taking a small cut before passing it to affiliate marketers.
E-commerce Stores:
E-commerce stores are websites that sell products under one brand. It is sometimes referred to as a “one-stop-shop” where buyers can purchase goods from different categories all in one place. Merchants are charged a monthly subscription fee to list products on the platform, while affiliate marketers are rewarded with a commission of up to five percent for every sale made. Read more about How is PPC Beneficial For Ecommerce Businesses?
SNS Media Sites:
Social media sites are widely used these days as they allow people to connect and share information through groups or their profiles. These websites do not charge merchants any fees, but affiliate marketers only get paid when sales are made. Popular social media sites include Facebook and Instagram.
E-commerce Search Sites:
E-commerce search sites are the ones that generate online revenue for Google. They work by allowing consumers to search for products they need on these websites while clicking on an ad or text link to visit an online store. Companies pay Google a certain amount of money if their ads are clicked on, but affiliate marketers get paid from the commission from every successful sale made.
Growth in Affiliate Marketing in Malaysia:
Online marketplaces allow merchants to expand their reach and increase sales exponentially, while affiliate marketers earn more for every referral made. Affiliate marketing helps e-commerce businesses grow, especially when it comes to online marketplaces.
Merchants are given more exposure on these websites since affiliate marketers help bring in traffic by sharing links to consumers. At the same time, they can even expand their brand reach by being listed across different accounts belonging to the same marketplaces.
How Big Is E-Commerce in Malaysia Today?
The figures in this post are from 2020. E-commerce in Malaysia has grown a lot since then. Shopee and Lazada are now the largest online marketplaces in Malaysia. Most Malaysians shop on their phones. Mobile shopping is now the main way people buy online. Some platforms named in this post have changed since 2021. 11street Malaysia closed before this post was written. Always check that a platform still operates before you join it. The main product types sold online in Malaysia include electronics, fashion, beauty, and home goods. Festive sales such as 11.11 and 12.12 are the biggest shopping days of the year. Sellers offer deep discounts on those days. Affiliate marketers earn more during these sales because more people buy.
How Affiliate Marketing Works, Step by Step
Affiliate marketing has four simple steps. First, join an affiliate program. Shopee, Lazada, and Involve Asia run affiliate programs in Malaysia. Second, pick products to promote. Choose products you know and trust. Third, get your tracking link. Each product has a special link that tracks sales back to you. Fourth, share the link. You can share it in a blog post, a video, or a social media post. When someone clicks your link and buys, you earn a commission. The commission is a small part of the sale price. It is often between 1 and 10 percent. The rate depends on the product and the platform. Always tell your readers that a link is an affiliate link. This builds trust. It also follows advertising rules.
Tips for New Affiliate Marketers in Malaysia
Pick one niche and stick to it. A niche is a small topic, such as skincare or home gadgets. People trust experts. Write honest reviews. Test the product yourself if you can. Tell readers both the good and the bad points. Do not spam your links everywhere. People ignore spam. Focus on helpful content. Answer the questions buyers ask. Track what works. Check which links earn the most clicks and sales. Do more of what works. Be patient. Affiliate income grows slowly. It takes months to build an audience. Do not quit after the first week.
Common Mistakes to Avoid
New affiliate marketers make the same mistakes. The first is promoting products they have never tried. Readers can tell when a review is fake. The second is hiding the affiliate link. Always disclose it. The third is chasing only high commissions. A product that does not suit your audience will not sell. The fourth is ignoring the audience. Write for real people, not for search engines. The fifth is giving up too soon. Affiliate marketing is a long game. Keep learning. Keep testing. Keep improving your content.
Frequently Asked Questions
What is affiliate marketing?
Affiliate marketing means you earn a commission when someone buys a product through your special tracking link. You promote the product. The seller handles the stock, shipping, and payment.
Which marketplaces are biggest in Malaysia?
Shopee and Lazada are now the largest online marketplaces in Malaysia. Most Malaysians shop on their phones.
How much commission do affiliate marketers earn?
The commission is often between 1 and 10 percent of the sale price. The rate depends on the product and the platform.
Do I need to tell readers about affiliate links?
Yes. Always tell your readers that a link is an affiliate link. This builds trust and follows advertising rules.
How long does it take to earn money from affiliate marketing?
It takes months to build an audience and earn steady income. Be patient. Focus on helpful content and keep improving.
Disclaimer: This guide is for general information only. Figures in this post are from 2020 and 2021. Check current rates, rules and platform details before you join any affiliate program.
Last Updated: 6 November 2026