WET-MARKET traders are moving online to survive after being hammered by the Covid-19 pandemic.

They join a slew of online grocers by increasing their digital presence, apart from looking to sell their produce through e-commerce applications and offering delivery services.

This is becoming more predominant among second-generation traders, who have inherited the businesses from their families.

Such services are safer despite being slightly pricier because they reduce exposure to the crowded wet market environment, while at the same time offer convenience for customers.

For a group of young traders at pasar Taman Tun Dr Ismail (TTDI) in Kuala Lumpur, they are now seeing their sales gaining traction two months after turning to Grab Mart delivery services.

Hafiz Abdul Rashid Chaw, a 35-year-old vegetable seller, saw his sales decline by 35% following the Covid-19 outbreak and the subsequent movement-control order (MCO), which prompted him to turn to the Grab Mart service under a six-month contract.

“Due to the pandemic, my business fell by 35%. After I started selling online and delivering to customers, it has helped cover the loss of customers and also increased my business volume by 20%,” Hafiz told The Malaysian Insight.

However, he said selling fresh produce online also comes with challenges because prices fluctuate according to market forces and it is not possible to alter the pricing on such platforms accordingly.

“When the Selayang wholesale market was closed earlier, many vegetables were out of stock and the prices of items increased.

“But as far as a mobile application goes, if you want to change the price in the programme, you must get the app company to cross check the market price before it is approved,” Hafiz said.

He also had about 30 riders at one time waiting for him to pack their deliveries, sparking complaints about not complying with social distancing.

“The commission for the delivery service is still 20%. For example, if a kilo of vegetables is RM1, it will cost RM1.20 when sold online and the cost will be borne by consumers, so I will not make much profit.

“For example, if I sell vegetables for RM80, RM15 will be paid as commission.

“To cope with the sudden increase in orders, I have to hire three additional employees to take orders, pack and distribute to the Grab riders. Overall, I am still satisfied with this new business model.”

Following the MCO on March 18, several markets were ordered to shut down while others were required to adhere to strict standard operating procedures, such as social distancing, allowing only customers who wear masks and permitting three customers in a stall at a time.

Butcher, Khairul Anwar Abdul Majid, 25, said his sales volume fell sharply after the MCO.

Customers were wary about going to wet markets and being exposed to the risk of contracting the virus.

After joining the Grab Mart service, his business saw a significant increase.

Khairul said: “70% of my customers come to buy meat in person and 30% choose delivery services. Now my business volume has increased by 30%, translating to an estimated extra income of RM8,000 to RM9,000 per day.

“Previously, the net profit from sales was between RM6,000 and RM7,000. During Ramadan, my net income reached RM12,000, representing a 20% to 30% growth.”

Khairul, however, said online shopping is only popular among younger or middle-aged housewives.

Elders insist on choosing by themselves

Although e-commerce is convenient, many, especially the elderly, still prefer shopping at physical markets.

For such groups, going to the market also allows them to socialise and pick and choose their items, said Khairul.

“Many elders like to stand in front of my stall to see how I cut the meat and how butchers work.”

Khairul said there are three stalls selling beef in the TTDI market, but he is the only one offering delivery services.

He said he’s lucky his income increased during the MCO, adding that the price is still affordable despite the commission factored into the price of the product on Grab Mart.

“My meat sells at RM38 a kg, but there is a well-known market that sells at RM42 a kg,” he said.

Chicken seller, Khairul Zafri Dahrus, 30, said prior to going on Grab Mart, he would occasionally deliver to regular customers.

However, sales have increased by 30%-40% after getting on Grab Mart.

“Generally, customers who purchase in large quantities, such as three chickens at a time will choose online services,” he said.

Like other traders, Khairul Zafri hired four employees to work on cutting chicken and packing because of the extra workload.

“It takes a lot of time to pack according to the customer’s requirements, especially during the MCO, where there is more demand for orders.”

He said that as long as there were no losses incurred, the service of selling chicken meat online will still be used and at the same time, it can bring in more customers.

After the MCO was enforced, many traders urged Grab Food to reduce commissions to alleviate their burden.

Grab said the commission is needed to support the delivery services and to provide delivery partners a sustainable income.

It added that demand for delivery services continue to rise during the MCO with Grab Food seeing a 30% increase.

Grab also introduced a host of new services, such as Grab Mart and Clean & Fix, and included wet markets in Grab Mart.

The MCO, now under the conditional MCO phase, runs until June 9, and people are required to adhere to strict health conditions even after it is lifted. – May 26, 2020.