Earlier e-commerce revenues in Saudi Arabia had staggering growth rate but surprisingly over the past two years, their growth has skyrocketed beyond 32% and online sales are expected to hit 9 billion US $ by the year 2025. According to an online report, the country may outpace UAE as the largest retailing market in GCC.
This industry has rightly been called as the waking giant and it is a trader’s dream for investing into its retails. The government as a strategy for 2030 has announced to focus on overall e- growths other than oil. People have now clear and sorted priority to switch to a convenient method of marketing to boost their commercial sector.
Here is a list of all that you should know about the Saudi e-trade.
The e-commerce key drivers are:
- A tough competition to emerging e-commerce markets:
Saudi trade has been giving a tough competition to emerging e-commerce markets of popular countries like Brazil and India. All of them have switched to online as well as cash on delivery options. Big companies have opened up their export business to enable traders from all over the world to sell on online platforms. Using Amazon KSA promo codes , the customers can avail their favourite products at amazing prices. The Souq has raised around 460 million US$ in funding over few rounds. Many firms have switched to expand to other nations while establishing their base platform in Saudi Arabia. From a report of business statistics by the World Bank, this middle eastern nation had jumped 72 global positions in a year for trading across border category. Considering nature of category – electronics, fashion and travel have been major contributors to drive the momentum of e-commerce in the country.
- High internet penetration:
Advanced internet services is another reason for high sales with online shopping extremely popular amongst younger generation and females. The internet usage is extremely high in the country compared to its neighbours. They have had a penetration growth jumping from 2.21 % to 67.7 % in the last 20 years. There are around a billion people active n social media sites which have encouraged the retailers to go for online methods of selling to promote their business. These numbers are proof of futuristic exponential growth that will allow them strong power over the industries. Rezeem can help you connect better and purchase the best for yourself.
- Focus on target markets and increased spending power:
Saudi Arabia has been declared as one of the 20 wealthiest countries in the world in terms of expenditures. There are around 33 million people in the country where a major target audience is tech-savvy and better equipped on engaging online. The online shopping grew tremendously in the past 4 years and have contributed greatly to increased revenue generation. The government aims at targeting specific audience according to the demands and steadily improving their growth curve. The target markets include groceries, electronic equipment’s, apparels, beauty products and personal care accessories.
- Socio economic reforms:
The government has been taking initiatives to improve their online trading over the few years. As a 2030 vision scheme, they have permitted relaxation on many regulations, encouraging larger investments in the sector. The government has also been working on promoting e-commerce websites to promote their campaign.
Private – government partnerships have attracted investors from around the globe. Also, the government has been working tirelessly on improving delivery services to enhance the productivity of their work. The country has adopted several economic reforms to generate revenue from sources other than oil. Reforms regarding lifting restrictions on women is said to have a positive impact on their overall trade growth
- Opportunity for retailers: The nation has witnessed an increasing basket value rate over the years. Electronic modes of payments and settlements have been encouraged to reduce cash dependency. Cashless marketing initiatives had been struggling initially but over the past two years, there have been a surge in digital payments over cash. Retailers offer Styli coupon codes for offering discounts to their client.
- Enhanced social engagement for better personalization of Services:
The policy makers have been working on improvising better personalized services to its customers for any query or support. This has convinced people of a reliable source to network and market their goods.