Countries Covered: Saudi Arabia
Publication Date: 15/04/2019
Questions Covered in the report:
What is the current state and outlook of the B2C E-Commerce market in the Saudi Arabia?
Which important market trends are present in B2C E-Commerce in this country?
How large are online retail sales in Saudi Arabia predicted to be by 2022?
What are the preferences of online shoppers in Saudi Arabia with regard to product categories and payment methods?
Who are the top market players in Saudi Arabian online retail?
Mobile shopping drives the growth of Saudi Arabia’s B2C E-Commerce market
Saudi Arabian B2C E-Commerce market is the leading in the region
Saudi Arabia is a regional leader in B2C E-Commerce sales volume. Together with the UAE, it accounts for more than two-thirds of online retail revenues in the Middle East and North Africa, according to latest statistics cited by yStats.com. However, when compared to the most advanced B2C E-Commerce markets in the world, such as the USA, the UK and China, Saudi Arabia’s online retail still has significant room for growth. Between 2018 and 2022, retail E-Commerce sales in this country are projected to rise at a high double-digit growth rate on an annual basis.
Saudis increasingly shop on mobile devices
One of the major drivers of the B2C E-Commerce development in Saudi Arabia is a high smartphone penetration rate, reveals yStats.com. With consumers increasingly using their phones not only to check prices or product information, but also to purchase goods via mobile websites and apps, M-Commerce sales are on the rise. Another positive development is improving E-Commerce regulation and the government’s investments in the digital economy.
Local E-Commerce competition intensifies
Cross-border E-Commerce sellers are among the main beneficiaries of the online shopping boom in Saudi Arabia. Around one in two purchases took place on such platforms in 2017. However, with Amazon going for a local strategy in the region after the purchase of Souq.com, the share of domestic sales is likely to increase. Furthermore, local E-Commerce marketplace Noon.com, launched with the support of Saudi Arabia’s Public Investment Fund, is expanding its operations in the country.