What Are The Ecommerce Business Models Dubai?

September 01 2016

In recent time internet has influenced our choices and perceptions a great deal. The evolution is seen in all walks of life. By giving a glance at global shopping trends we’ll witness a huge transformation from old-school shopping to the latest online shopping practices. The trend although being recent, has quite a significant footprint in the Middle East. Dubai being the biggest center of global economics and house to many international brands has shown radical increase in e-commerce marketing over the last decade. Statistics show that online shopping has risen by about 1500% in last ten years in whole Middle East and is ever increasing.

E Commerce Marketplace

The consumers in Middle East characterized by having relatively higher wealth and easy access to high speed internet sources are biggest beneficiaries of online shopping Dubai. The use of websites for display of products by all leading brands of the world is further encouraging online buying. The youth is attracted by the latest fashion trends and the quest to look different boosts them to go for online procurement from global market rather than waiting for the product to be launched locally.

The research shows that the net worth of online market Dubai in the Arab world is around $7 Bn. U.A.E being the biggest contributor with $2.3Bn in the year 2014. The customers from Saudi Arabia, Bahrain, Qatar and Egypt are top of the line regarding online shopping.With the advent of smart phones in our lives the provision of being online has evolved a great deal. A good exploitation of smart phones has enabled the youth to hunt the latest stuff in real time.

A big name in banking Standard Chartered Bank reveals that they have made $50Mn investments in the leading Middle Eastern online shop Souq.com keeping in view the potential to benefit from online transactions and business.Social media and search engine optimization is used by online retailers for their advertisement. In Arab world excessive use of facebook, twitter, linkedin etc has made people wild for grabbing their chunk in the pie.

Online business is not just about the websites, it demands to have a good delivery system too. The online retailers in Middle East have identified the need of better logistic systems. Consequently there are huge investments in this regard throughout the Arab world particularly in Ajman, Ras al Khema and Egypt. All of them focus at same day delivery or at least next day delivery, although this has not been achieved yet but the efforts have the right direction. Another reason for drastic increase in online shopping Dubai is the relief of not having to wander in markets, face traffic and extreme weather problems. One can just sit on his couch in his air conditioned room and find all the better options on his computer screen. For moving from one brand to another requires only a click, this allows more choice on part of buyer. Product reliability and delivery of right product by the supplier is the bottom line of online shopping.