Countries Covered: Saudi Arabia
Publication Date: 25/08/2020
Questions Covered in the report:
- How does the pandemic affect the B2C E-Commerce market in Saudi Arabia?
- How does Saudi Arabia compare to other countries in its region and worldwide in criteria related to B2C E-Commerce?
- Which product categories were purchased online during the outbreak in this country?
- What are the consumer expectations in Saudi Arabia regarding the use of online payment methods during the COVID-19 outbreak?
- Which top E-Commerce websites in Saudi Arabia were purchased from during COVID-19?
Online retail activity in Saudi Arabia rises during the COVID-19 outbreak
Number of orders placed online accelerated during the pandemic
The COVID-19 lockdown restrictions combined with efforts of the Government of Saudi Arabia towards digitalizing the Kingdom have resulted in increased online shopping activity. Since the onset of the COVID-19 outbreak, the KSA experienced double-digit growth in online retail sales of certain products. Additionally, a massive increase in orders placed online was noted in June 2020, compared to online orders in April 2019. Another important trend in Saudi Arabia is cross-border online shopping. According to a report cited in the yStats.com publication, AliExpress, a leading cross-border E-Commerce marketplace in the KSA, saw triple-digit growth rates in product categories such as computers and accessories, printers and sleep and lounge goods during the pandemic.
During the health crisis, online purchase of ‘Entertainment at home’ products increased
After the COVID-19 outbreak, online shopping trends slightly shifted as shoppers started acquiring certain products online more than before, such as “Entertainment at home” and “Consumer Electronics” products. Furthermore, more consumers started ordering groceries and food online. According to a survey, a substantial share of Internet users in Saudi Arabia ordered food or groceries delivery more often due to the coronavirus outbreak. However, the top product categories purchased online during the pandemic remained to be “Clothing & Footwear” followed by “Electronics” and “Medicine”.
Saudi Arabia’s E-Commerce sellers see a surge in sales amidst the pandemic
Significant growth in online activity has been seen by local online retail businesses in Saudi Arabia during the health crisis. Order value for Bin Dawood Holding doubled, its average sales and app installations accelerated by triple-digit growth rates. Another local grocery app, Nana Direct, received high numbers of online orders and sales. The Ystats.com publication reports that Amazon, one of the top E-Commerce market players in the Kingdom, launched its website in Saudi Arabia replacing previously acquired Souq.com amidst the pandemic.