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E-Commerce Trends in UAE & Middle East Emerging New Business Opportunities

E-Commerce Trends in UAE & Middle East

The tide of technology rises while the vessels afloat to rise with it. The vessel is the internet and the entire e-commerce industry that thrive across the globe. The e-commerce industry has established its benchmarks from every corner of the world. With reliable shipping methods, easy checkouts and hassle-free payment, the e-commerce industry is getting traffic since their invention.

Why do People Shop Online?

Online shopping is so penetrating the current years because the internet works faster and there are more reasons for it. People depend on e-commerce stores for expensive super cars like Porsche and Lamborghini to the trivial things like daily groceries. Due to the industrial advancements and recent infrastructure, city life has become tougher and busier for people to drive to their nearest Mall. There might be risks like losing money to a parking ticket and getting stuck in a traffic jam. To sit on the comfort of your couch is better than suffering the ordeal. Middle East Shoppers adopt this trend as their lifestyle.

Why Do People Purchase Online?

The top shopping regions are the Middle East. The E-commerce market of the Middle East has reached $ 18.5 billion in 2019. The revenue is expected to reach $ 4 billion in 2020 and 60% of shoppers are from Dubai. Several brick and mortar stores have taken their business to the online platform for more reach. 42% of Middle East people access their internet to shop online and 87% of online shoppers are satisfied with their shopping.

Smartphones

Based on the study conducted by the Times of Oman, 1 in every 3 people of the Middle East make an online purchase from their cellular devices. 46% of online shoppers are convinced to shop through mobile phones and 85% of people access the internet with cellular devices. Knowing the statistics, several smart business owners of UAE are converting their websites with responsive designs and without the hassle of unnecessary scrolling.

Demographics of Shoppers

The highest percentage of online buyers are from the younger age groups of 26 to 35 years. The highest numbers are from Egypt exhibiting 50% followed by KSA by 46% and then UAE and Kuwait as 42%. Products purchased online are electronics, air tickets, fashion wear and appliances.

Social Media Influence

Social media decides customers what to buy and what not. Social media campaigns are the cheapest as well as fastest to spread exposure of business for increasing their visibility on the internet. The more followers, the more feedback the businesses get.

Based on Global Media Insight’s social media statistics of UAE are:
YouTube has 88% of active users. Facebook has 79% of followers, while Instagram has 68% and Twitter at 53%. Pinterest and Linkedin have 25% and 45% of active users. 72% of online buyers come from social media platforms.

Cross Border Shopping

49% of online buyers of the Middle East prefer buying cross-border products that provide free shipping facilities. There are certain barriers like long delivery period, fraud and identity theft to prevent customers from cross border shopping

UAE – the Powerhouse for E-commerce

People’s attitude is one of the reasons for the rapid growth of E-commerce. Government supports the market that has initiatives like “Smart Dubai 2021” to thicken the e-commerce business and leverage emerging technologies. People’s trust in digital payments and increasing digital penetration have contributed to the growth of e-commerce in the United Arab Emirates. 70% of people trust online payments in UAE and 66% of people trust online shopping.

Things to Know

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