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Saudi Arabia B2C E-Commerce Market 2016

  • April 2016
  • 52 pages
  • yStats - Global E-Commerce Intelligence
Report ID: 3795752

Summary

Table of Contents

Saudi Arabia leads region in E-Commerce market attractiveness, according to a new report by yStats.com

The latest report from yStats.com “Saudi Arabia B2C E-Commerce Market 2016” reflects that even with the decrease in petroleum based revenue, the country’s retail market is sound, and online retail is growing faster than brick and mortar sales.

Saudi Arabia leads the other countries of its region in E-Commerce market attractiveness, as shown in the yStats.com research. Even though neighboring UAE has a higher online sales volume and Internet penetration, factors contributing to the high attractiveness rating for Saudi Arabia include the population growth and a burgeoning retail market overall, encouraged by the government drive to move beyond a petroleum-centered economy. The value of B2C E-Commerce transactions in the country is expected to double in five years to 2020.

One challenge to the growth of online retail in Saudi Arabia is the dependence on cash-on-delivery as the predominant method of payment. Over half of Internet shoppers pay with cash, though payment with plastic is gaining traction, according to yStats.com research, as card ownership is widespread and issuers are offering special products for B2C E-Commerce.

The yStats.com report indicates that the leading product categories purchased by online shoppers in Saudi Arabia are electronics and fashion items. Local online retailers that benefit from these preferences are Jarir.com, which sells electronics and books, and Namsi.com, seller of clothing and accessories. Saudi Arabian shoppers’ most popular website however is the UAE’s Souq.com.

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