SGshop to raise US$122k via equity crowdfunding
By Digital News Asia August 24, 2018
- Provides product quality assurance services and cost-competitive shipping options
- Plans to expand its market reach beyond Malaysia to tap into the Asean market
SGSHOP, a Johor-based online quality assured cross-border shopping site has launched its inaugural equity crowdfunding (ECF) campaign to raise US$121,866 (RM500,000) through Ata Plus, a registered ECF operator.
Plans are in place for SGshop to expand its market reach beyond Malaysia to tap into the Asean market with a combined population of over 630 million and an aggregate size surpassing US$2.5 trillion in 2016.
The funds raised in SGshop’s ECF investment round will be used to enhance its technology infrastructure, in upscaling its logistics capabilities, in expanding its product range and marketing initiatives.
SGshop aims at tackling common issues faced by online shoppers, specifically product quality, shipping and delivery. SGshop addresses this by providing product quality assurance services and cost-competitive shipping options.
Established in 2015, SGshop has served 70,000 users thus far from 6,000 users in the first year of operations. Users have also rated a 95% customer satisfaction for SGshop’s services - proof of its undivided commitment to guaranteeing shoppers are protected online.
In 2017 according to UPS, 75% of online shoppers have returned purchased items to retailers; a 7% increase from its previous year. Additionally, other studies have shown that over 85% of consumers want a convenient returns policy, whilst 56% seeks for affordable return shipping option.
SGshop’s competitive advantage stems from the fact that they take pride on safeguarding purchases by thoroughly inspecting products ordered and ensuring products ordered are indeed the correct item, in good condition, and not prohibited to enter Malaysia.
“E-commerce in the region is growing rapidly given Asean’s huge population and growing middle class, but retailers need to address shortcomings on the customer front to ensure businesses reach its full potential.
“This is why SGshop prides itself as a trusted and reliable platform for Malaysians to purchase products from China. Product quality is our utmost priority,” said SGshop Ecommerce Sdn Bhd co-founder and director Lua Cheong Hong.
“We are eyeing further expansion by strengthening our market share in Malaysia, emerging as the premier gateway for safe international online shopping; and subsequently penetrating regional and international markets,” added SGshop co-founder and chief operating officer Lua Cheong Rui.
“Many young businesses are turning to equity crowdfunding as an ideal way to expand and grow their companies. It is a groundbreaking way to allow businesses to acquire significant capital and validates SGshop as a sustainable business model,” said Ata Plus director Kyri Andreou.