The proliferation of e-commerce has drastically changed the global retail market. But this megatrend, which has transformed the dynamics of consumer behaviour and business models in retail, remains untapped in the Middle East and offers huge potential for industry players.

Major drivers of e-commerce growth in the Middle East, especially in the Gulf region, would be a high spending potential—owing to a high per capita income— developed transport logistics networks, rising internet penetration levels and a growing tech-savvy youth population.

The presence of just a few players makes the market an attractive destination for e-commerce investment. With market barriers easing—improved infrastructure, ease of obtaining licenses and better warehousing facilities—and high investment potential, the region’s e-commerce market looks poised for strong growth.

During the pandemic, e-commerce is expanding, providing a great opportunity for entrepreneurs to establish up shop and start selling.

Here’s what you need to know about this industry.

• During the epidemic, e-commerce exploded, allowing businesses to survive and prosper.
• When compared to a physical store, you don’t have to spend as much money on overhead with an e-commerce business, and you have access to a global audience.
• Running an online store comes with its own set of obstacles, such as a higher risk of fraud and high cart abandonment rates.
• This post discusses the fundamentals of starting an e-commerce business for persons who want to learn the basics.
• During the COVID-19 epidemic, selling products and services over the internet took on new significance, as company owners and customers had little choice but to adopt e-commerce.
• That trend is here to stay, offering small business owners with opportunity to succeed online.

However, before you start an online store, you must first grasp how everything works.

Depending on what is being sold and to whom, there are various e-commerce business models. The three most frequent categories are as follows.

1. Business to Consumer (B2C): This form of company sells items or services to individual customers. B2C e-commerce is the most frequent sort of internet business, and it includes everything from clothing to entertainment. Amazon, Noon etc are examples of B2C e-commerce stores.
2. B2B E-commerce: When a company sells items or services to another company online, this is referred to as B2B e-commerce. Items such as office supplies, furniture, and equipment may be sold by these companies. They also offer cloud-based services such as document signature software and other online business solutions.
3. Marketplaces: E-commerce marketplaces: These are websites where third-party merchants can offer their products or services to consumers. Other online marketplaces include platforms like Facebook. You can list your products on their platforms and gain access to their consumer bases in exchange for a percentage of the sale.

E-governance initiatives

Local governments were migrating paper-based information services such as passports/visa issuance, vehicle licensing, logistics tracking, and utilities billing/payments to the online platform, where they are integrated with standardized or universal online payment platforms, as part of the announced e-governance initiatives. These platforms are frequently used as the foundation for online purchasing systems, ensuring a risk-free experience for customers. In the future, government-led digitalization measures are projected to increase the e-commerce business even more.

Digital adoption and transformation

A combination of factors, including high mobile device penetration, population readiness to adopt new technologies, and local government digitization programs, has positioned the region for a digital transformation

Amazon

In 2017, Amazon purchased Souq.com, announcing their move into the Middle East market. Amazon’s advertising service launched in early 2020, and since then it has been a hit platform to carry out E Business Activities. It’s a global Buy and Sell Platform offering marketplace and B2C models.

You can apply for an E Commerce License and set up an Amazon Seller Account with our guidance and consultation.

Noon

Noon.com is the Middle East’s homegrown online marketplace, following the footsteps of Amazon. Noon is gaining popularity in United Arab Emirates and the neighboring countries.

With the e Commerce License, you can set up your business on Noon and start selling your products in various categories.