Saudi Arabia Driving M-Commerce In MENA Region: Report

Admitad MENA, a branch of the Global Affiliate Network Admitad, has released its second annual industry report where it outlines several key trends and factors on today’s online shopping and e-commerce trends in Saudi Arabia.

In a highly digitized era that will continue to grow exponentially, it is becoming increasingly evident that consumers are moving their shopping needs towards online platforms. The Admitad research reported that Saudi Arabia is home to one of the youngest populations in the world, i.e. 70% of the country’s population are under the age of 35- with a largely tech-savvy consumer base, it is one of the many reasons for their significantly high online consumer activity.

The report also indicates that mobilization is a very popular movement amongst the consumer base in Saudi Arabia. Over 70% of the population have made online purchases through the use of smartphones. Infact, mCommerce purchases are at an all time high with over 50% of purchases across all sectors being made through mobiles. Research And Markets reported that B2C eCommerce sales in Saudi Arabia have been expected to double between 2018 and 2022. With one of the highest smartphone penetrations in the world, Saudi consumers are looking more towards their phones for product information and purchases. Admitad highlights that mobilization is no longer a trend, but an important characteristic when it comes to eCommerce.

Cross-border sales is another huge contributor to the online market- an analysis by ystats.com states that over 50% of KSA’s market is attributed to purchases made on international platform. Admitad reports that one of the of the main accelerators for the development of eCommerce is the expansion and standardization of the delivery system in 2018- an implementation that will essentially speed up the delivery of goods via the Internet and make logistics as convenient as possible.

“The era of mCommerce is increasing at an astounding rate- today, we are seeing that most consumers in Saudi Arabia use their mobile devices to make all kinds of purchases. Advertisers are becoming smarter with the way they approach these consumers, so that they can have the convenience at the tip of their fingers! It is no longer a growing prospect but rather an existent one, and we will continue to see more brands get on board with this change.” - Artem Rudyuk, Head of Admitad MENA.

As the driver for smartphone penetration continues to increase, the behaviours of consumers are simultaneously evolving. However, businesses, advertisers and publishers are also consistently preparing for a large online consumer base. Businesses are establishing online platforms for their consumers to reach them comfortably, advertisers are targeting their consumers on platforms like Facebook- social network that is very popular amongst Saudi internet users. It has become evident that as the populous becomes majorly digital, businesses will also need to get smarter.