E-Commerce in the Middle East Shows a Clear Growth in Numbers
By Space Coast Daily // October 3, 2020
In 2020, the e-commerce industry has estimated a growth of $69 billion. After being hit by the pandemic, global economic slowdown seems to be inevitable. In such a scenario, e-commerce is the only industry that has immense potential to grow. In Middle East, there are many opportunities for the eCommerce industry.
Ecommerce in the Gulf region started booming in 2016. According to a study, only 15% of businesses had an online presence in the Middle East before 2016. Even at that time, people used to purchase things online. They used to purchase goods from various foreign e-commerce stores.
Despite having an excellent internet penetration rate, only 2% of retail stores in the Middle East had their online stores before 2016. The year 2016 is pivotal in the growth of the e-commerce industry in the Gulf region. The scenario started changing gradually from this year.
Excellent Internet and Social Media Penetration
So, what fuelled the e-commerce growth in the Middle East after 2016? According to industry experts, two things are crucial for e-commerce growth. First of all, good internet penetration is essential. In other words, the internet should reach every nook and corner so that people can access the e-commerce stores easily.
Internet networks is getting spread rapidly in the last few years in the Gulf region. According to industry data, the growth of internet users in this region is quite impressive. Along with the growth of internet users, the number of social media users is also rising. Social media brings better exposure to e-commerce businesses. A lot of small scale e-commerce stores prefer promoting their business on social media platforms.
Well-Versed Internet Users
For e-commerce growth, it is important to have educated audiences who know the proper use of the internet. With the expansion of internet connectivity in countries like Kuwait, Saudi Arabia, UAE, Egypt and other Gulf countries, people are getting well-versed with various technical aspects of using the internet.
A smartphone is a common gadget today for everyone. The handheld device gives access to the internet anytime from anywhere. People have become well-accustomed with various Smartphone features, Play Store apps, etc. Knowing all these technical aspects has helped the e-commerce industry to grow.
The Convenience of Online Shopping
Online shopping is convenient, and people in the Middle East know that even before the e-commerce industry boom in the region. A large number of people use to purchase products online through e-commerce stores that are operating from other countries. However, the consumer experience was not satisfactory in many cases.
Ordering products online from foreign e-commerce stores is a time-consuming thing. Once you placed the order, the product would take a long time to be delivered. Ordering products from local e-commerce stores is convenient, as it assures quick delivery.
Along with quicker delivery, the consumer experience has also been enhanced in various ways by e-commerce stores in the Middle East. Buyers can order products from anywhere. You can order goods sitting at your office or home. Buyers have the choice to order products at any time.
Physical retail shops remain open for a fixed period of time. They may remain closed on special occasions. With e-commerce stores, there are no such things. You are free to order products anytime as you need. You can visit Rezeem for checking various coupon codes for the popular e-commerce brands in the Middle East. Using these coupon codes at the time of your purchase from the e-commerce stores will fetch handsome discounts.
Industries That Have Succeeded Going Online in the Middle East
Both B2B and B2C e-commerce stores have registered an excellent growth rate in the last few years in the Gulf region. A few business sectors have been identified as having huge potential for e-commerce growth. In the last three to four years, these industries have shown immense potential for e-commerce success.
Some of these industries are tourism (hotel and flight booking), books and magazines, booking tickets for events, fashion, toys, etc. The gadget market is booming in the Middle East. Hence, it is no surprise that many e-commerce stores have come up with an online gadget selling feature for buyers. Smart buyers can take advantage of competition in the e-commerce industry in the Middle East.
Rising competition is provoking the traders to offer more discounts and offers to grab more buyers. As a buyer, you can check ACE UAE coupon codes for getting excellent discounts on your purchases.
Apart from the industries mentioned above, there are a few more industries that have the potential to become successful by transforming into online businesses. For example, the pharmaceutical industry has high potential in the e-commerce spectrum of the Middle East. Beauty and wellness is another industry that can obtain the benefits of e-commerce growth in the Middle East.
What Influences Ecommerce Buyers in the Middle East?
In the Gulf region, buyers are smart and well-versed with online shopping. There are a few things that grab the attention of online buyers in the Middle East. The most important thing is the discounts or offers. Buyers do not hesitate to take the advantage of growing competition between the e-commerce sellers in the Gulf region. With growing competitions, businesses are trying to lure buyers with more discounts and online coupons. Who does not like a cheaper deal? Buyers can use Microless coupon codes to shop their products. It will help them to get amazing discounts on their products.
The next important thing is the secure payment gateway. As buyers in the Middle East are well-versed with online buying, they always look for the secured payment gateways. If an e-commerce store does not offer a secured payment gateway, it would lose the trust of the buyers.
Free shipping is also something that helps an e-commerce store to find more buyers. Another important thing is a product review. Ecommerce businesses have to be transparent with their buyers. Reviews of the buyers have to be featured on the product page. It is a common thing for the buyers to read reviews on products before purchasing.
Overall, the Gulf region can expect further growth in the e-commerce industry in the coming years. Due to the Covid-19 pandemic, traditional businesses have been disrupted. As a result, the e-commerce industry has gained a better scope to grow even at a faster rate than projected before the pandemic.