Five secrets driving growth in Middle East e-commerce

A study by Checkout.com shows that nearly half of the consumers surveyed are likely to increase their online shopping frequency and spending in the next year, which provides a good growth opportunity for the Middle East, where cash on delivery is the main payment method.

In addition, what other factors have influenced the changes in the e-commerce and payment ecosystem in the Middle East?

1. The importance of digital payments is becoming increasingly prominent. The Middle East has always been slower than other parts of the world in accepting e-commerce, but the impact of the epidemic and people's deeper understanding of e-commerce are driving e-commerce and digital payments in the region. Checkout.com's own platform's digital transaction business has grown by 86%.

Moreover, the payment process has become a major consideration for online shoppers in the Middle East, with 48% of consumers in the region believing that a safe, reliable and convenient payment process is more important than fast delivery and a convenient return process.

The study also showed that the more frequently consumers shop online, the more their preference for digital payments grows. 62% of people who shop online once a month pay via credit card or e-wallet. This highlights how important payments are to the success and growth of e-commerce businesses.

2. Retail "subscription" and "platform". As companies continue to innovate and integrate to eliminate barriers to customers, retail "subscription" and "platform" have become a trend. Through a multifunctional platform that combines shopping and payment, companies can attract users who seek convenient shopping.

From food delivery to groceries to gas for your car, users are able to do everything with a simple tap, which is a growing trend across many industries.

3. The rise of local brands in the Middle East. In some areas, local brands in the Middle East are serving the long-tail market of e-commerce in this field, and they have become strong competitors to some large international e-commerce platforms. Driven by the increasing number of technical talents, many good emerging forces have emerged in this field.

4. Government and regulatory agencies support innovation in the field of financial technology and payment. As people realize the convenience that digital payment brings to their lives, they are eager for more digital payment applications to appear on the market. Since last year, many digital payment companies have indeed emerged in the Middle East, especially "buy now, pay later" payment.

5. Developing the digital economy is a core focus for many countries in the Middle East. For example, Saudi Arabia and the UAE are preparing to launch real-time payment infrastructure in the near future. At the same time, some regulators are also encouraging companies to cooperate and compete fairly to cultivate a stronger digital ecosystem.

The Middle East e-commerce and digital payment sector is undergoing tremendous changes. Now is a good time for both regional and international companies to invest in the region's e-commerce market. In order to make the most of this opportunity, companies should provide consumers with in-demand products and services and provide a good online shopping experience.

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