Challenges in Inventory Management in the New Era of E-Commerce in Malaysia

The rapid growth of e-Commerce in Malaysia has significantly transformed business operations, creating both opportunities and challenges for inventory management. This study explores the key issues faced by e-Commerce businesses and examines strategies employed to address them. Using a quantitative approach, data were collected via a structured questionnaire distributed to retail businesses in Malacca. Regression analysis revealed that quality control has a significant positive effect on inventory management challenges (β = 0.458, p < 0.01), while order fulfilment shows a negative but significant relationship (β = -0.303, p = 0.018). Inventory tracking was not found to be a significant factor (p = 0.653). These results suggest that quality control and fulfilment remain central to efficient inventory management, although other unexplored factors may also play a substantial role. Future studies should broaden the sample to other Malaysian regions, include more managerial and strategic-level respondents, and apply advanced methods such as factor analysis or structural equation modeling to capture additional explanatory variables, including technological capacity, supply chain integration, and returns management. The findings provide insights for businesses to strengthen competitiveness, customer satisfaction, and adaptability to new technologies such as AI, IoT, and blockchain in inventory practices.