It is no longer a secret to anyone how important electronic commerce is in our lives. It is no longer new for us to know that the volume of trading in buying and selling via the Internet has exceeded the barrier of 33 billion Saudi riyals for the year 2021, E-commerce is not only the future, but it is a reality that we live in, flourish and grow at a tremendous speed with the passage of days.
What is e-commerce?
- Carrying out operations that include the sale and purchase of goods and services via the Internet.
- E-commerce customers can make purchases from their devices such as: smart phones and smart watches, Not only locally, but globally, 24 hours a day.
- The importance of e-commerce is increasing day by day and its share of daily transactions is increasing compared to traditional buying and selling methods.
The emergence of e-commerce in Saudi Arabia and its development over the years:
- E-commerce began in Saudi Arabia years ago. But it began to grow exponentially after the Corona epidemic crisis.
- The volume of e-commerce transactions in the Kingdom reached $7 billion in 2020, after the sector’s revenues increased dramatically since its inception in 2001, until Saudi Arabia became one of the largest global markets in the field of e-commerce in 2019.
- In 2018, the number of online shoppers in Saudi Arabia was estimated at about 9 million people.
- Statistics and estimates indicate that the number of online shoppers will witness a significant increase by the year 2022. Bringing the number of shoppers to 3 million people.
- In the Kingdom of Saudi Arabia, there are approximately 45,000 online stores and e-commerce platforms
- It is expected that the number of those interested in buying from online stores will increase to 4 million shoppers by 2025.
- The Kingdom of Saudi Arabia achieved the twenty-seventh position in terms of the largest e-commerce markets in 2021, With total revenues estimated at about $8 billion.
- An online shopper in Saudi Arabia does their shopping online at least once every three months. And spending an average of nearly 4,000 Saudi riyals on online shopping annually.
- The report revealed the contribution of e-commerce in the Kingdom to the national accounts, with a revenue of $48 billion in 2020. According to the sectors of e-commerce, The clothing and footwear sector amounted to $3.2 billion. Then electronics, $2.99 billion. Then furniture and home appliances at $1.47 billion. The lowest revenue came from the Food and Drug Administration, $776 million.
- According to the data, e-commerce is growing clearly in the retail trade sector, which is one of the most positive sectors, while the vehicle repair sector was the least affected.
- According to the Global E-Commerce Index in 2020, the Kingdom ranked second in the Arab world and 49 globally among 152 countries included in the index issued by the United Nations Conference on Trade and Development.
- These numbers, which are constantly increasing, for e-commerce in Saudi Arabia, are a very important indicator of the enormous potential of Saudi Arabia as a market in which you can trade and offer your products or services.
Advantages of e-commerce:
- Lower material costs compared to traditional trade
You can create your online store and display hundreds or even thousands of diverse commodities without the need to create a huge gallery to display these commodities. It will save the exorbitant costs of rents and maintenance required for the place as in the traditional trade.
- Continuous and timeless income
Visitors to your online store can make various purchases around the clock every day also during the year in its various seasons, As your online store is available to your customers without a mandatory closing time like stores
- Sales across borders and continents
Dear owner of the online store, you can have customers from all over the world without any restrictions related to the difference in place or language.
- Access to customer data and create a space to communicate with them
As an online store owner, you need to know your customers’ opinions and impressions of the products or services offered to them through your online store. So that you can develop and meet the desires of your customers to always have their preference.
Disadvantages of e-commerce:
- Technical failures and your online store being out of service
One of the most serious factors that may cause the loss of a large number of customers to your online store, Therefore, dear online store owner, make sure to choose a platform suitable for the size of expected customers.
- Inability of customers to try the product before purchasing it
Therefore, the details of each product should be explained sufficiently so that it is clear to the customer if the product is suitable for his need.
- Unforgiving fierce competition
Customers now have high search capabilities and the ability to purchase from any online store in any country in the world. Therefore, as an owner of an online store, you must continuously develop your store and take into account the opinions and interests of your customers on a regular and effective basis.
The future of e-commerce in Saudi Arabia:
- Expanding into more markets
Indicators and sales reports indicate an increase in sales volume through various electronic platforms. Which means more opportunities for growth, development, and access to any place in the world as long as the reasons for success are available, such as ease of purchase, product quality, and effective communication with customers.
- Communicate with customers with advanced voice technologies
We will gradually witness a remarkable development in terms of responding to customer inquiries, With what artificial intelligence technologies guarantee us, which will provide a simulation pattern that approaches the natural person, This enhances the shopping experience for the shopper.
- Increasing rates of shopping and purchasing via mobile phones
Today’s shopper uses his mobile phone for almost everything. Reservation of airline tickets, food orders, medicines, clothes and groceries, Therefore, dear owner of the online store, you must take into account the ease of browsing your store via mobile phone, so that you can have more customers and your customers will relate to you more than any other store.
- Social media platforms and their impact on buying style
Social media platforms have a strong interest and influence on various aspects of life. With growth rates approaching 73% annually, social media platforms clearly affect the purchasing decisions of shoppers through various online stores.
- Speed of delivery and receipt
Our world is witnessing a remarkable development in the field of aviation and unmanned aircraft. Which means that in the near future we may have experiences of purchasing through electronic platforms that guarantee us the arrival of a product purchased from a country thousands of miles away on the same day, This enhances the shopping experience for the shopper and increases his connection to the online platform that provides such a level of service.
- Purchasing via voice technology
Customers are increasingly interested in the possibility of communicating with various electronic platforms via voice technology. This means that electronic platforms must keep pace with the technological development in this field to satisfy their customers.
- Purchase across different visual experiences
As in the case of voice purchasing technology, Many shoppers aspire to future purchase experiences that guarantee them more interaction with the product visually before purchasing it. This allows the shopper to know the details of the product and thus increase the possibility of purchasing and acquiring it.
Day after day, we make sure that e-commerce is a vital and even necessary window for individuals and societies as a whole. Within a framework through which everyone strives to achieve both personal and material goals, Therefore, we advise you, dear reader, to follow the news and developments of e-commerce, so that you may seize the opportunity to break into this promising field.