Saudi Arabia E-Commerce Market, Size, Share, Forecast 2023-2027, Industry Trends, Growth, Insights, Impact of Inflation, Company Analysis
Saudi Arabia's E-Commerce Market is expected to reach US$ 20.01 Billion in 2027. The digital economy has grown dramatically over time, with internet connectivity becoming widely available worldwide. Therefore, as more e-commerce enterprises enter Saudi Arabia, the e-commerce industry grows tremendously. Moreover, to fulfil the increased demand for online retailing, several e-commerce industry vendors have extended their operations in Saudi Arabia. Furthermore, based on recent market trends, the Saudi e-commerce business feels that there is a growing need for online shopping among buyers.
Saudi Arabia's E-Commerce Market Size is expanding at a CAGR of 20.87% from 2022 to 2027:
Saudi Arabia's e-commerce sector is expanding due to increased smartphone usage, social media usage, and internet penetration. Furthermore, this has prompted international e-commerce market suppliers to invest in the country. According to Invest Saudi, the government will have 575 new foreign investment projects in 2021. The rise in these international ventures is due to the country's booming e-commerce and retail markets.
Impact of COVID-19 on Saudi Arabia's E-Commerce Industry:
The global retail sector, particularly the brick-and-mortar model, has been severely impacted by the COVID-19 outbreak and lockdown. Nonetheless, e-commerce is one of the few industries that has seen a growth in consumer transactions in various areas. Saudi Arabia is following the same pattern. Multiple companies in the region were compelled to react to changing customer priorities due to the commercial slowdown and nationwide lockdown. As a result, Saudi Arabia's e-commerce business segments had substantial growth as internet shopping and retailing became the new approach under these circumstances. According to Renub Research analysis, Saudi Arabia's E-Commerce Market was US$ 8.53 Billion in 2022.
By Category, Fashion is expected to hold a Major Share:
During the Covid-19 pandemic, the fashion sector grew because client tastes switched towards online buying with easy access to various websites, eliminating the need to visit physical stores. The surge in users of social media and smartphones, for example, has fuelled demand for online purchasing and commerce. Moreover, several fashion firms plan to extend their presence in the Saudi Arabian market. In March 2022, for example, noon.com announced the opening of its new 45,000m2 Customer Fulfilment Centre in Riyadh, Saudi Arabia. This will allow them to transport their items quickly around the country.
Trends of Payment Methods Existing in Saudi Arabia E-Commerce Market:
Although, in the e-commerce industry in Saudi Arabia, cards as a payment mechanism have the most dominant market share in the online purchase cycle. Meanwhile, bank transfers, cash on delivery, direct debits, and e-wallet choices will continue to grab their market position in the Saudi payment landscape in the coming years. Investments in research and development, innovation, and entrepreneurship in fintech digital payment start-ups in mobile payments, cross-border peer-to-peer payments, and digital commerce transactions are also expected to assist Saudi Arabia's e-commerce business to grow.
Companies in Saudi Arabia's e-commerce market are becoming more competitive. Amazon, eBay, Emmar Properties Namshi, Noon, Alibaba, and Jarir Marketing (Bookstore) are among the most prominent participants in the sector. These significant businesses currently dominate the Saudi Arabian e-commerce market in market share. However, as e-commerce evolves, many companies and startups expand their market presence by gaining new contracts and entering new areas.
Renub Research latest report “Saudi Arabia E-Commerce Market, Global Forecast, By Category Analysis(Beauty, Health, Personal& Household Care, Beverages, Electronics, Fashion, Food, Furniture, Media and Toy, Hobby & DIY), Payment Method (Card, Cash, E-wallet, Bank Transfer and Others), Companies (Amazon, eBay, Emmar Properties Namshi, Noon, Alibaba and Jarir Marketing (Bookstore))” provides a detailed analysis of Saudi Arabia E-Commerce Industry.
Category Analysis – the Market has been covered from 8 viewpoints:
1. Beauty, Health, Personal& Household Care
8. Toy, Hobby & DIY
Payment Method – the Market has been covered from 5 viewpoints:
1. Bank Transfer
3. Cash on Delivery
4. Direct Debits
• Recent Development
3. Emmar Properties Namshi
6. Jarir Marketing (Bookstore)
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