E -commerce growth is breaking record around the world, and Saudi Arabia is also grabbing it slowly and permanently. So, will online retail for the Saudis be a new routine? What are the latest trends and opportunities as Saudi Arabia’s e -commerce retailer? Let’s have a packabo.
The kingdom of Saudi Arabia
After Iran and Iraq, the Middle East is the third largest population in terms of population, Saudi Arabia has about 34 million inhabitants. The Internet also holds the second largest position in terms of the user’s population, which has a penetration rate of 73.5 %, which is expected to reach 91.2 % by 2024. It is also at the top of the smartphone’s penetration rate, which is 65.2 % right now. Saudi has about 84 84 % of the country covered by citizens who have good access to high -speed Internet connection. Moreover, the majority of its population is the rich, young and tech lover, which makes it the most qualified market for e -commerce, which offers great potential for industry players.
One of the top 20 richest countries by spending electricity, Saudi is soon going to become an e -commerce hub not only due to the ability to spend its people, but also to make digital payments, licensing, and activate cheap e -commerce capable people. So far, modernity was the biggest reason for the rise in e -commerce in Saudi, but today, with the Covade 19 pandemic, which forced us to stay home, e -commerce suddenly observed rapidly because online shopping appears to be safe rather than going out to buy life -threatening lives.
Saudi and e -commerce
Online shopping was not so famous in the Saudis for the past few years when it started to pull. In fact, just a few years ago, the kingdom of Saudi Arabia (KSA) began to face a steady change in online shopping from offline shopping. Despite being the largest in GCC countries, the KSA e -commerce penetration in 2017 was only 1.4 percent but the times are changing, and now it has exceeded 32 percent and is expected to cross US $ 9 billion by 2025.
Although the global average is increasing with a slow pace (12.5 % against 24.8 % worldwide), e -commerce predicted in Saudi to gain a higher e -commerce market position in the e -commerce market in the Middle East in the Middle East. If we take a look at the e -commerce classes, fashion products guide online sales in Saudi Arabia until Corona arrives, today, online grocery sales are high not only in Saudi Arabia but all over the world.
Following fashion products, which is US $ 1.91 billion in 2017, comes electronics and media, which was US $ 1.85 billion in the same year, followed by furniture and appliances due to the increasing number of incomprehensible growth. As soon as the government lifted the ban on the use of beauty products, the online sale of personal care products was injury. In addition, online purchases of sports, consoles, music, film, event tickets and travel services have taken online sales in Saudi in the past few years to a whole new level.
With payment methods, Saudis only depended on the cash on delivery (between 69 % of online orders and 85 % of online orders) due to fear of cyber fraud. However, the situation has changed. Now, with cards and e -wallets such as PayPal, Amazon payment, Google Wallet, Apple Pay, Mada Pay, STC Pay, and the statement are handling accounting for 24 % of all purchases.
The e -commerce market was ruled by the people of Amazon, E Bay Saudi Arabia because of the obsession with the purchase of people’s foreign products. Now, 65 % of all online purchases are made of Gulf Cooperation Council countries, such as websites based in Noon.com, based in the United Arab Emirates, but is owned by 50 % of Saudi Arabia Public Investment Fund, Haraj.com.
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Trends of viewing in Saudi Arabia
Saudi online buyers are often buyers. According to the Saudi Communications and Information Technology Commission, about 23 23 % of e -commerce consumers have purchased at least once every two weeks, while only 3 % buy less frequently than every six months. Also, the smartphone is included in Saudi Arabia’s online purchase devices. This shows that the mobile commerce will soon become Saudi Arabia’s hottest trend with this pace with which mobile shopping is still happening.
Many local offline retailers suffered a huge damage during pandemic disease that has led to the need E -commerce solution provider in Saudi Arabia To prepare their online portal. Therefore, the trend of establishment of online stores will make more spice in the coming days due to a sore throat.
Opportunities for retailers
From brick and mortar to click and mortar
Saudi Arabia offline retail is the strongest, but now many local retailers have been chosen online. Omni Channel is a good circle of commerce.
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Access to new and wide customer
Since the e -commerce in Saudi Arabia is still at its growing stage, it is a great time that they intend to join their e -commerce market because not only the government is welcoming and issuing a license for it, but the demand from the Saudis for online groceries and equipment is increasing day by day.
Social trade
The Saudis were found on social media on average 2 hours 55 minutes per day. There are about 19 million social media users, followed by Instagram, Snap Chat, etc., while in total 88 % – 21.2 million people use the WhatsApp. Therefore, Saudi retailers should not lose the opportunity of social trade and should not use these platforms for advertising and promotional activities because one -third and one -and -a -half online buyers have to buy from social media sites in Saudi Arabia, according to a survey of Ystats.com from early 2017.
Economic recovery after economic recovery
We all know how the global economy has been affected by the Kovide 19 infection. For the Saudis, two major operations oil exports and offline retail businesses that make most of the economy stopped during the lockdown, which hindered the economy. Therefore, it is time to invest in the Saudi e -commerce market.
Wrap
E -commerce in Saudi Arabia is increasing at an impressive rate due to the rise of digital payments, logistics, high internet penetration, etc. Saudi is open to new markets and with the government allowing the e -commerce sector, it is now time for those who appear. The future of e -commerce is that Saudi is just growing more and that’s why you will refer to better E -Commerce App Development Co. in Saudi Arabia Like Moby Kachmers – who is gaining popularity throughout the Middle East for its e -commerce solutions, to prepare your online presence for the Saudi market as soon as possible.
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