E-commerce spend in Saudi to hit $13bn
Riyadh, November 24, 2013
E-commerce market share in Saudi Arabia will hit SR50 billion ($13.3 billion) by 2015, said a report.
About one in four Saudi Internet users are already active in e-commerce, and they visit about 70 million e-commerce pages per month, said the organisers of a forum to be held in Riyadh next month quoting the Saudi Post.
Cash on delivery is still the preferred method of payment for most e-commerce buyers in the Mena region, reaching up to 75 per cent, according to Aramex.
However, new payment gateways are emerging that are working to solve this and increase trust in online transactions.
E-commerce spending has reached an all-time high in the kingdom and the user growth is at an estimated 9.3 per cent per year, which is likely to increase faster as e-commerce companies learn how to earn and leverage their customers’ trust, said the source.
M-commerce, however, has been forecast to become seven times larger by 2015, due to the progressively larger demand for mobile tablets, it said.
The current e-commerce clients over population ratio are higher for UAE than it for Saudi Arabia, it said.
As for e-commerce market share, the biggest player in the kingdom today is Souq.com, with a sizeable chunk of Saudi e-buyers at 13 per cent, followed by Sukar.com with eight per cent, Namshi with seven per cent, and MarkaVIP with five per cent.
These regional companies make up just a third from the entire Saudi e-commerce market, but they are strong within the rest of the region.
Many Saudi women with entrepreneurial and career ambitions are finding e-commerce to be an ideal platform, allowing them to build thriving businesses from home.
The challenges and potential of e-commerce in Saudi Arabia will be one of the key themes at ArabNet Riyadh 2013, the largest annual digital gathering in the kingdom, to take place on December 3 and 4.
The forum will explore how to unlock the potential of e-commerce in Saudi Arabia, and discuss the latest trends in online payments.
ArabNet Riyadh will feature 80 expert speakers and will bring together more than 800 digital professionals, influencers, entrepreneurs, and investors. The event will also cover the newest initiatives in digital Arabic content, and will feature an exhibition with more than 40 leading companies showcasing their services and technologies. - TradeArabia News Service