Are you among the 75% who prefer paying-on-delivery?

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Are you among the 75% who prefer paying-on-delivery?
The UAE leads the Middle East region in e-sales volumes.

Dubai - Middle East one of the fastest-growing e-commerce markets globally, seen to hit $20b in 2016

by

Rohma Sadaqat

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Published: Tue 1 Nov 2016, 7:40 PM

Last updated: Mon 7 Nov 2016, 10:27 AM

Despite the fact that online and mobile shopping is on the rise in the UAE, shoppers still prefer to pay for their purchases using the cash-on-delivery method.
A study carried out by UAE-based e-commerce company Awok.com revealed that 80 per cent of shoppers accessed the online shopping website using mobile phones - 18 per cent through desktops and two per cent via tablets. The figures are unsurprising, given the fact that the UAE ranks high on the world map of mobile penetration, which is reflected in the rise mobile shopping trends.
Despite the bullish trend in online and mobile shopping in the UAE, the study reveals that 75 per cent of customers prefer to pay cash/card on delivery, as compared to the 25 per cent that opt to pay online. Similarly, a 2016 Gartner report found that about 80 per cent of online shopping in Middle East is done using cash-on-delivery. This makes the transaction less efficient, takes a longer time to complete the delivery, and tends to have a higher return rate.
The Middle East region is one of the fastest-growing e-commerce markets globally and is expected to reach $20 billion this year. The UAE leads the Middle East region in e-sales volumes, with some forecasts indicating a $10 billion market in the country by 2018. Moreover, in Saudi Arabia alone, the e-commerce market is set to hit $10.8 billion by 2020 compared with a projected $6.8 billion in 2016.
The Middle East's largest e-commerce site, Souq.com, has also witnessed a huge growth in its mobile commerce segment. "M-commerce grew exponentially in 2015 and over 60 per cent of our sales are driven by mobile shopping," said Ronaldo Mouchawar, co-founder and chief executive officer of Souq.com.
"There is great opportunity for e-commerce businesses and payment providers to work closer to offer multiple payment options that consumers in the UAE can use safely and conveniently. We have seen an increase in the percentage of customers choosing to pay online, which indicates growing trust among consumers in this sector. Given the increasing appetite for online and mobile shopping in the country, responsible digital retailers are committed to improving systems to offer seamless and more secure online shopping processes for customers," said Ulugbek Yuldashev, owner and managing director of Awok.com.
Awok.com's study also highlights that online shopping is immensely more popular among men than women in the UAE. It reported that 74 per cent of the shoppers on the website are male and that 26 per cent are female, and that the typical online customer is between 25 to 34 years old.
"The statistics that we have reflects the pulse of the country's online retail sector. At Awok.com we watch the trends closely to consistently develop exceptional experience for consumers as well as constantly improve our offerings," Yuldashev added.
- rohma@khaleejtimes.com


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