Why Launch An E-Commerce Website In KSA

E-commerce in KSA

Traditional ways of shopping have become outdated. The year 2020 is all about the digital world. There is no better way to bring joy to interested buyers than with the right E-Commerce website and the click of a button! People spend hours skimming through the web or a mobile app with the hopes of making a sale. Bain & Company  stated that the year 2017 marked the beginning of the “e-commerce phase” in the MENA region. The GCC, to be specific, holds account for 80% of the e-commerce market.

Saudi Arabia has the third largest population in the Middle East. Also, it has the second largest internet user population that reaches 24.1 million (Internet World Stats). A recent study, by Northwestern University in Qatar in 2019, concluded that 8% of the Saudi population regularly bought products online thanks to the well-studied e-commerce marketing strategy. Although, the number seems to be low; however the Kingdom was ranked the second largest market for e-commerce in the GCC after having received 520 million dollars in sales in 2011. The most commonly bought items were grocery, home products, electronics, travel expenses and clothing.

A large number of businesses have turned to digital marketing to increase their profits. Saudis and other buyers can help your e-commerce business reach the specific target through good advertising. With the right online marketing you are well on your way. All companies seek to expand their online customer base. But, the question arises: What are the benefits of launching an e-commerce website in KSA today?

1. Increase customers’ trust

A beautifully and creatively developed website generates immediate trust in your clients. Since Saudis spend a lot of time on the internet, they know very well that if you take care of your online image with proper attention; they can easily trust your products.

2. Saudi Vision 2030, a vision for E-Commerces

Vision 2030 is a project launched by Prince Mohammed Bin Salman. It is built on three basic themes: a vibrant society, an ambitious nation and a thriving economy. This business plan is a strategic framework to reduce the dependency on oil in order to diversify its economy and nourish other public service sectors. Much like e-commerce, digital payments are a major component of Vision 2030 reform plan. The Kingdom is expecting to achieve an online payment target of 70% in 10 years. With an increased accessibility to internet marketing, e-commerce is certain to experience high growth in Saudi Arabia. We wrote more on the 2030 Vision in the following article: How Will The Saudi Vision 2030 Impact Digital Marketing.

3. Attracting new clients with Search Engine Visibility

As we know, traffic that comes from search engines motivates online marketing. The role of search engines in the process of research is very helpful. Bain & Company stated that almost 56% of consumers in the UAE and KSA start their shopping journeys using search engines. Saudi’s are in constant search for the latest products and offers online especially during the holidays. For clients, it is uncommon for them to form a connection and visit an e-commerce website that they have never heard of. SEO can increase your web traffic by making sure that your website features in relevant searches. More search engine visibility will attract more people to your e-commerce website.

There has never been a better time to be in e-commerce in MENA region. According to Bain & Company, the market is estimated to reach 28.5 billion dollars in 2022. The region, including KSA, is hungry for a vast online product selection and new shopping experiences. However, a survey performed by Mastercard shows that Saudis are concerned with 4 major things: the reputation of the website, the security of the payment platform, the value of the items and high delivery fees. Therefore, to create a successful e-commerce market targeting Saudi Arabia, it will be necessary to create websites and online markets that are trustworthy, easy to use and without high service fees.

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