E-commerce in The Middle East: What You Need to Know
Amy | On 31, Jul 2015
In the first half of 2015, a study conducted by PayFort for e-payments predict a strong increase in the e-commerce sector for the Middle East region. The research forecasts that by 2020, the volume of e-commerce in UAE, Egypt and Saudi Arabia, will amount to $13.2bn. Whereas this year, volume of accomplishments in Kuwait, Saudi Arabia, Egypt, Jordan and Lebanon have reached an amount of $7bn.
To rank them in places by size of activities, UAE got first place with $2.3bn, Saudi Arabia reached $1.5bn, putting it in second place. Egypt got third place reaching $1.4bn.
Regardless of the above information, the study also revealed the rate of online buyers dealing with e-commerce companies does not exceed 74 per cent, which they believe is low. The report also managed to survey the hardest challenges faced by e-commerce companies, and it is: their client’s trust for online payment method.
Here is the information about online payment methods, in numbers:
16% of the companies accept that consumers find it secure.
13% of companies say that clients believe it’s unsafe.
And 26% of the companies answered with “Clients prefer to pay in cash on delivery or any other alternative payment methods”.
In regards of Market channels:
42% of e-commerce companies believe that Facebook is the most effective marketing channel.
23% Instagram on second best marketing place.
And 13% for Twitter.
Furthermore, 16% of the companies accept that search engines and social websites increase their sales, followed by 13 per cent for marketing e-mails.
In terms of most items sold, according to companies 24% of items sold are entertainment products, followed by electronic products.
With having the above said, the Arab world seems like a pretty good opportunity for e-commerce companies. We hope you find this information useful.