Something we already came to realize in 2021 is how eCommerce has caught the light among retail channels after COVID19. This effect has been going 2020-2021 now and is, according to this research, expected to keep growing.
Retailers shifted to online and started providing innovative techniques and strategies to get more online sales not taking any more risks to more losses due to any future outbreaks.
Consumers across the globe made more online purchases, especially UAE. That’s why the UAE e-commerce market has witnessed one of the highest growth periods recently. It has become one of the most dynamic markets in the MENA. Keep reading to know more.
In this article, we’ll cover eCommerce in the UAE region with market size and the top e-commerce platforms.
UAE Ecommerce Market Size Statistics 2021
- Pandemic aftermath says the UAE’s eCommerce market size is expected to reach $11,034 US million by 2025 (based on Statista).
- 10.30% is UAE’s market revenue annual growth (CAGR) 2021-2025.
- Fashion being the market’s largest niche, reported a volume of 2,221 million US dollars in 2021.
- The Middle East & Africa’s eCommerce sales growth downsized to 19.8%.
- In parallel to worldwide eCommerce sales that took a downhill to 16.5% during the high declaration of the two largest markets (China and India).
- The average lifetime of eCommerce businesses in UAE is 2 to 3 years stating that the ultimate reason for any business to stay in the UAE is to “Innovate or Die”.
Take a look at important UAE social media statistics:
UAE is witnessing a development, one of the factors playing in that path is their thriving mall culture. Besides, retailers of brick and mortar are realizing the importance of eCommerce and growing a noticeable interest in the eCommerce payments and omnichannel solutions that attract their customers.
Brands started to take the omnichannel approach due to its efficiency in attracting customers and turning them into buyers. Amazon.ae was one of the big brands that publicly embraced that approach, and we think you should too.
The UAE is the regional dream destination for every startup on many levels; consumers have access to home-grown brands, attractive funding abilities, craving investors both locally and globally.
Enjoy a marketplace of apps & services tailored to every eCommerce business 🏷️
According to Pedersen and Partners, UAE is considered the top market in the MENA region with an expected CAGR of 23% until 2022. Also, as we see the advancement in eCommerce users isn’t expected to take any downshifts, companies have started to develop new technologies supporting their online services such as AR and VR.
Supply Chain: a Solution for eCommerce
Most retailers are becoming prepared for the sudden shift between brick and mortar supply chains to eCommerce. Retailers physical operations had to be set up to match the digital methods of selling and offering online services to run a successful eCommerce business.
Having a stunning online store is the frontline of attracting your customers through a smooth user experience, but such a transformation from offline to online requires supply chain expertise. UAE retailers rely on notable investments to ensure their warehousing and logistics workflow fulfills their eCommerce business needs.
We can already see a rise in the activity of UAE technological investments which provide the opportunity to afford AI and robotic automation to improve the seamlessness of analyzing data and managing the eCommerce business.
Did you know? 🏄🏼♀️
Gucci has also embraced the technologies of AR through virtual platforms in a collaboration with Snapchat. Which allowed Gucci customers to virtually try augmented reality has recently embraced AR virtual platforms in its collaboration with Snapchat, consumers were able to virtually give their favorite Gucci shoes a virtual try-on their outfits. This is now available in UAE, KSA, and other European countries.
The Mall Experience in the Middle East is Lasting 🛒
We once told you about how virtual shopping is emerging to fill the gap between online and physical stores: Virtual Shopping: What Is It? And How to Use VR Shopping in Retail Stores?
However, we still cannot touch, feel, or smell the products in a virtual shopping experience. Therefore malls still play a vital role in the UAE market.
So as much as AR and VR technologies are anticipated in the near eCommerce future, still individuals, families, and couples or friends will remain visiting malls for shopping, dining, or just hanging out. Malls form an important role in the lifestyles of Middle East residents.
The idea of virtual experience will never fully replace the experience of physical shopping and being able to physically interact with products and meet around the mall. However, the increasing number of online shoppers makes it reasonable to provide additional digital context to ease the process and provide the smartest digital experience possible.
Sudden Increase in UAE’s eCommerce Growth
Why, do you think is UAE one of the top countries that have swiftly developed into eCommerce? As mentioned above, it couldn’t be interpreted farther than COVID19. However, the ecosystem of UAE makes the right reflection for being an eCommerce active country and is projected for magnificent growth.
UAE and especially Dubai’s enthusiasm for eCommerce growth is served by the below factors:
- Higher than the US and China eCommerce investment and adoption rates
- e-Payment platforms support ecosystem; smart Dubai and Payfort, etc.
- Loyalty and trust between the consumer and eCommerce platforms
- High logistics infrastructure maturity signals.
- The UAE Government itself supports entrepreneurial initiatives with accelerations such as FinTech and Dubai Future Foundation.
Top eCommerce Sites in UAE
One of the top high-rated eCommerce stores in the UAE market. Mostly anything can be found through Souq. That’s why Emirati consider Souq as the one UAE shopping platform for anything; electronics, mobiles, makeup, skin and hair care products, decoration, furniture, clothes, accessories, and even cars spare parts.
Noon is the second top-rated eCommerce platform in the UAE. While Souq marked the first arrival to the market and wins over Noon with its Amazon authorization, Noon paces forward with the Dubai Mall online shopping experience. Allowing UAE customers to shop products from the Dubai Mall while sitting in the comfort of their homes.
Back to You 🍍
UAE has become a vital role player in the e-commerce industry after realizing how important it is in the future of the economy and selling merchandise.
Today we talked about the innovative techniques and strategies that started to get in a better shape after Coronavirus while retailers depending on investors to provide them with the ability to smoothen the user experience for their online customers via smart logistics and AI automation solutions.
After witnessing the major shift from retail to digital shopping and the growing dependency on technological solutions to provide a smoother virtual shopping experience, what are your thoughts on future eCommerce?
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