Ecommerce Trends in the UAE That Will Be Dominant in 2021
The eCommerce business in the UAE is on an upward path. Compared with both developing and developed markets, its particular development direction is driven by government acceptance of eCommerce payments on platforms such as Dubai Smart City.
Government payments, amid rapid development in other segments, such as fast service restaurants and travel, lead the eCommerce landscape by miles.
In order to promote the growth of eCommerce, the readiness of logistics infrastructure is important, and in this respect the UAE is at par with some of the most established markets in the world. The nation enjoys an edge as a big global transshipment center with a high level of logistics facilities at the port of Jebel Ali and Dubai airports.
The UAE enjoys multiple benefits that make it perfect for growth in eCommerce. A young internet-savvy community, with strong social media use, consists of the user demographic. These individuals are more inclined to invest time online than any of their counterparts worldwide.
We at Royex Technologies realize this, and are helping ecommerce companies achieve their dream by creating robust, professional, and profitable eCommerce websites and apps. We are one of the best ecommerce website design companies in Dubai.
E-commerce firms are tapping into the strong latent appetite, disposable income, and digital adoption that is beneficial for the industry, whether they are online markets, domestic sellers, or cross-border merchants.
Retail sales are a major factor of economic growth, with a 26.6 percent share of GDP in 2017, becoming the most significant activity in the services market. The UAE retail market is valued at $55 billion in 2018 and is expected to grow to $63.8 billion by 2023, divided into shop and non-store transactions, which include eCommerce.
Hence, it becomes important to analyze the trends in the UAE eCommerce sector that will dominate in the next year.
Increase in payment options
The UAE is home to more than 10 of the top 100 e-commerce sites in the entire MENASA region, focused on B2C products, a sign of both demand and supply. Multi-product marketplace platforms such as Souq.com (acquired and rebranded as Amazon), Awok.com, and Noon.com are part of UAE e-commerce companies; apparel sites such as Namshi.com; single store sites such as Jumbo.ae; and supermarket stores such as Carrefournow.com. 63 percent of the total specific customer base in MENASA is drawn by multi-product and multi-brand industries.
Customers in the UAE also tend to pay with credit rather than debit cards for e-commerce purchases. Customers, though, have shown greater comfort with using debit cards to pay for e-commerce transactions during the past three years.
There are several online payment choices such as Visa, Mastercard, PayPal and recently we saw Apple Pay, Samsung Pay get into the mix. This is only the start.
In 2021, we can also see eWallet, the app for processing all the purchases, being accepted by consumers. You will be able to submit & receive cash on your UAE mobile line with eWallet, pay Etisalat bills & traders. No minimum balance & no bank account needed, without any registration fees.
ID verification for secure payments
Government policies aimed at encouraging innovation, entrepreneurship and a cashless economy in order to encourage financial inclusion and greater openness have provided the growth of e-commerce in the UAE a major boost. The UAE rated 73.5, placing 27th of the 73 economies surveyed in the 2018 Government E-Payments Adoption Ranking (GEAR), and inched forward to the mature group, which starts at 75.1.
In both the public and private sectors, the government is pushing a Smart City plan. The Central Bank of the UAE has finalized a National Payment Systems Policy as a powerful advocate for the overall innovation and financial technology agenda of the UAE that aims to build a stable, future-proof payments environment that better supports the goals of the UAE of a digital economy and a cashless society.
The Smart Dubai 2021 initiative involves a modern, lean, linked, "paperless, cashless government, driven by cutting-edge, disruptive technologies, defining the government of the future now." Dubai's DED has released a mobile payment solution named emPay, a digital wallet that operates with collaborators around the payment community, as part of the broader cashless agenda.
And the government has now unveiled UAE Pass, a common digital identification for all people, visitors & visitors, to move a step further. For safe authentication, the UAE Pass is your personal digital identity. Inside the United Arab Emirates, it will allow you links to different signature and authentication services. And we can see merchants integrating with UAE Pass with no need to recall customer usernames & passwords and a secure tool for merchants to verify their customers.
Better customer service through data collection and analytics
The discrepancy between online and in-person data gathering with camera systems, facial recognition, tracking beacons, point-of-sale data and traditional digital measurement and analytics will be bridged by physical retailers.
Much like internet stores can recognize the movement of consumers on their web, WiFi, cameras, Radio Frequency Identification (RFID) beacons and more can be utilized for brick-and-mortar locations.
The aim is to recognise high-traffic places in the shop, missed items, dwelling period, and the flow of products from the rack to the fitting space.
The age of real-world analytics is upon us, from real-time merchandizing to make data-based choices on physical contact management and shop preparation. In-person data capture and analytics coupled with web, smartphone and social data takes retailers far closer to a truly 360-degree consumer experience.
2021 would be a year of "fast and free shipping" for eCommerce businesses in the UAE.
Same-day delivery would be a practice instead of an anomaly. Express delivery can come at a premium, so who can arrive quickest will have cut-throat rivalry. However, the technology and commerce element of this should not be dismissed. In all e-commerce sites competing to do this (just like the Food Distribution Apps), position mapping technology must be allowed and the cost of express delivery would still be a price fight between merchants. Eventually, regardless of the real expenses involved with the logistics, there would be a correction to this model.
A rising number of riders from delivery service providers such as Talabat, Deliveroo, Uber Eats and Spoonfed are whizzing around to deliver meals to customers on UAE streets. In the growth of transactions in that segment, customer dependency on these food ordering apps to compare choices and order from their restaurants of choice is evident.
Frequent flyer miles, cash-back certificates, even the favorite café's cafe cards. It is evident that incentive and loyalty schemes are an effective method for driving company revenue and exposure, whichever variety is selected. But these are paperless cycles, because it's more about getting a reward scheme focused on an app.
A new app-based lifestyle loyalty platform named Share was unveiled by leading retail and leisure entrepreneur Majid Al Futtaim, which enables users to receive and spend points at 2,300 outlets across its 16 shopping malls and 11 UAE hotels.
The Sharing wallet delivers real-time receiving, saving and contactless payment functionality for digitally-minded members. Other choices involve receipt scanning to gain points and purchasing points in every store in the shopping malls.
And this was accompanied by a promotional campaign that involved advertisements, publishing and multimedia promotions at famous places around the UAE.
Taking a cue, the bandwagon would be followed by several famous labels, retailers, entrepreneurs. Customers will be spoiled with reward selection and internet consumerism will be powered.
Rise of distribution centers
As a major global transhipment centre, the UAE enjoys a benefit with the port of Jebel Ali and Dubai International Airport (the world's sixth busiest freight airport) having a high level of logistics facilities available for e-commerce to take place.
As a key driver for e-commerce expansion, improving logistics has been recognized as a key factor. Retailers also fine-tuned e-commerce logistics to enable development and volume, shifting away from technologies traditionally geared to brick and mortar transactions. Compared to retail retailers, the e-commerce supply chain provides a distinct range of benefits and obstacles. This is being tackled within the transportation and industrial industries through technical advancement.
E-commerce logistics is distinct from conventional logistics using new technology such as 3D printing, successful RFID monitoring, or GPS-driven solutions. E-commerce often requires a distinct order period that, as opposed to being stable and consistent, is counted in hours and minutes instead of weeks and orders are seasonal and fragmented. For B2C rather than B2B customers, quick satisfaction needs comprehensive customer support solutions. Distribution is demand-driven rather than supply-led, with centralized bulk supplies taking the place of smaller exports to different destinations.
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About the Author
Shams Mohammed works as a Digital Marketer for Royex Technologies. He has over 5 years of experience as digital marketer with special focus on lead generation and brand awareness. He has undertaken several projects and delivered them successfully and wishes to continue developing and growing as a successful Digital Marketer.