Why KSA is Leading in Online Shopping in Middle East

The Covid-19 Pandemic significantly boosted and cultivated digital marketing and online shopping, being adopted by brands all across the globe. Middle-East was no stranger to this. Covid-19 fueled regional E-commerce to record levels, making regional regulators see the true potential of the sector.

If we talk about Kingdom of Saudi Arabia (KSA), a country characterized by stringent and rigid rules and regulations, with predefined traditional shopping structures, is now shocking the Globe, by becoming one of the leaders of Digital Transformation in the entire Middle East. Despite of the fact that UAE has higher market volume than KSA, the growth rate of KSA is significantly higher, making it inevitable for the country to thrive in the near future.

Government Playing a Vital Role in Gaining Consumer Confidence

The government of Saudi Arabia is re-strategizing, taking into account, global trends, and the onset of Covid-19. The most interesting part is that KSA started off immediately, in 2019, when the Covid-19 set foot. The country passed an E-commerce law in 2019, to protect its consumers from fraudulent online transactions, in an attempt to gain consumer confidence and stimulate E-commerce and online shopping. Consequently, the combined efforts of the government of KSA contributed towards the fast-paced growth of the E-commerce industry, and customers started becoming more and more comfortable with online shopping and its adoption.

The fact that KSA is expected to grow nearly 40% over the next year, is proof that the country is taking Digital Transformation seriously, and is, in fact, leading online shopping in the Middle-East. The pandemic only served as an amplifier for what KSA was already preparing for. KSA’s adoption towards E-commerce was preemptive, even before the onset of Covid-19, which is why the country is ahead of its Middle-Eastern counterparts. 

Companies Investing Heavily in Digital Infrastructure

One of the other reasons why online shopping is leading in KSA, is because of how heavily companies and brands are investing in Digital Marketing, and amplification of online shopping experience for consumers.

Notable retail conglomerates like Emar Malls and Majid Al-Futtaim have significantly invested in improving and reshaping digital infrastructures to support the paradigm shift towards online shopping. In alliance with renowned tech companies, they have showcased virtual shopping rooms and platforms to attract more brands to start Ecommerce shops and make online shopping more intuitive and interesting for KSA consumers. There are many startups and renowned brands i.e. Victoria’s Secret KSA coupon code, Amazon KSA, and more are establishing and improving their online presence in KSA.

Re-evaluating Regional Supply Chains

Consumers are satisfied with online shopping when their ordered products are shipped and delivered on or before the promised time, without any delays. Having said that, the supply chain is a core element of shipping and delivery, especially when it comes to E-commerce platforms and online shopping. KSA is focusing towards re-evaluating and re-shaping its regional supply chain mechanism. The significant demand for E-commerce, coupled with challenges of market posed by Covid-19, online retailers are localizing their supply chain, by accommodating multiple fulfilment centers around the world, for a better online shopping experience.

Internet Penetration Rate Coupled with Use of Digital Payments

It’s not hidden fact that the Covid-19 Pandemic caused the entire world to shift towards online shopping and its adoption. Having said that, Internet penetration rate in KSA is now higher than ever, with more smartphone usage, and mobile shopping. Due to the increase in internet penetration rates in KSA, coupled with increased smartphone usage, the adoption of Digital Payments became prominent, so much so that consumers wouldn’t prefer to have any other methods of payment, than through digital channels. Fintech Sector is growing at a rapid pace, and consumers in KSA now prefer to pay through digital channels, making online shopping increase at a much higher pace in the country. KSA is continuing to introduce and promote more and more digital channels, to make its consumers support and use E-commerce platforms at large.

Final Thoughts and Words

In light of the discussion presented above, you must be well-aware of the growth of E-commerce and online shopping in KSA, and how it is becoming its driver. The fact that KSA is cultivating digital transformation and prompting E-commerce, only shows how hell-bent the country is, in becoming the leader of online shopping for its consumers, not only in the Middle-East, but from the Global Forefront as well, and based on figures alone, it will be interesting to see how far the Kingdom is planning to grow, as opposed to its competing regions.