E-commerce is considered as the future of retail, and without doubt, is beginning to get more popular in UAE. The acquisition of Souq.com by Amazon this year indicates the fast-growing Middle East market online. Souq.com is a popular e-commerce platform here in the Middle East, while Amazon is one of the leading e-commerce industry globally. According to Mr. Fahad Al Gergawi, CEO, Dubai Investment Development Agency (Dubai FDI) – “Amazon’s acquisition of Souq.com reflects Dubai’s importance as a regional hub and the success of companies in utilizing the advantages for growth and expansion available in Dubai.”
What is E-commerce
Electronic Commerce are commercial transactions conducted electronically such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI) â€“ Wikipedia.
Ecommerce for Retail Businesses
As technology advances and as people spend more time online with their computers and mobile devices, e-commerce is one great investment for retailers in todayâ€™s market.
E-commerce share of total global retail sales from 2015 to 2021
This statistic shows retail e-commerce sales as a percent of global retail sales from 2015 to 2021. In 2016, e-retail sales accounted for 8.7 percent of all retail sales worldwide. This figure is expected to reach 15.5 percent in 2021, according to Statisa.com and in UAE it is expected to hit $10 billion (AED 36.7 billion) in 2018 as per Mallfortheworld.
What benefits does ecommerce provide?
- Easy for customer to select products. No need of moving from one aisle to another, or from one store to the other.
- Customer can order 24/7.
- Product payments are done faster and easier, no queuing lines.
- Bring in more customer with its potential online reach, no geographic limitations.
- Low maintenance and operational cost.
- Itâ€™s easy to start and manage.
The ability of e-commerce to put â€œofflineâ€ retail stores on mobiles and computer devices has contributed positively to businesses who have been practicing it. Given the proper functionalities and marketing strategies, explore on how e-commerce would work for your business. Get in touch with a professional web development and online marketing agency to help you build your online store today!