There are many reasons why e-commerce traders see the Middle East as an alternative and a market with great potential. If you are engaged in e-commerce and want to improve your business, starting from the Middle East can be a very smart move. Compared to other regions, the Middle East, which is the fastest-growing region in e-commerce, has increased its sales volume by 1500% in the last 10 years. This remarkable increase in the Middle East, particularly in Saudi Arabia and the United Arab Emirates, clearly demonstrates the potential for advanced e-commerce in the region.
More than 60% of those living in the United Arab Emirates and about 50% of those living in Saudi Arabia shop online on foreign websites, with an average basket amount of around $ 300.
The Youngest Population in the Middle East
In the United Arab Emirates, 64% of the population is younger than 31 years, while in Saudi Arabia 75% of the population is younger than 35 years. These two regional leaders have a demographic structure of the young population who are more inclined to online shopping. Most of the online shoppers in the United Arab Emirates are under the age of 31.
This young generation in the Middle East is actively using social media to find new products and share what they love. Companies that market the products or provide online services such as hotel and airplane booking are able to achieve very profitable results with their operations in the Middle East. The biggest potential underlying these results is that young people are active internet users.
The fact that more than half of the online purchases are made via smartphone shows that the mobile e-commerce potential in the Middle East is a point to be taken into consideration definitely.
“If e-commerce companies are not ready to sell on mobile, they are not ready to open to the Middle East too.”
According to a survey conducted by PAYFORT, one of the most used payment platforms in the Middle East, 42% of the mass of internet shopping is under the influence of Instagram while shopping online. This unleashes the digital potential of the Middle East in terms of advertising strategies.
The Most Intense Campaign Season is Ramadan
Ramazan Month, which is the peak season of e-commerce companies, offers a serious market advantage for companies that will start e-commerce from the Middle East. In this period, internet sales increase by 15% in Saudi Arabia and by 24% in the United Arab Emirates, while consumers in the United Arab Emirates generally shop for apparel, electronics, and jewelry from the US retailers.
Different Payment Options
Compared to the United States of America, where customers prefer to pay over the Internet, customers in the Middle East are more inclined to pay at the door. Whether it’s an online payment system such as a credit card or Paypal, e-commerce companies that are wishing to enter the Middle East market should be prepared to sell in line with all possible payment options.
But most importantly, to reduce the amount of risk to be taken when opening to new markets as much as possible and, therefore, to find reliable partners. With Omnitro, you can focus on your growth in this new market you are opening, and you don’t have to deal with the logistics process.