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Delivery, payment top digital commerce growth in ME
DUBAI, March 4, 2016
Delivery, payment and customer service are the top things Middle East digital commerce players should focus on to grow their business, according to Gartner.
Gene Alvarez, managing vice president, Gartner, said: ”More than half of the population in the Middle East have Internet access, while only less than 20 per cent are online shoppers. The region has a lot of growth potential.
"Today only 15 per cent of the business in the region have an online presence, and only 10 per cent of the digital commerce transactions are between the local residents and businesses based in the region.
“The rest is bought from outside Middle East. With a GDP per capita among the highest in the world, a young population, and encouraging government initiatives, the Middle East will see strong growth for digital commerce in coming years."
The governments in the region have been offering online services for traffic charges, utilities payments and public services, giving quick and easy access to citizens and getting people familiarized with digital transactions.
The UAE government has even set up a duty-free e-commerce hub "mahajircom", offering companies technology platforms, payment gateways and logistics services, supported by preferential business and tax policies.
"A number of companies are investing in digital commerce, trying to become the Amazon of the Middle East, yet many companies have not looked into the digital channel very seriously,” said Alvarez.
“There are not enough digital commerce offerings in the Middle East, leading to low customer adoption, and most purchases are bought from businesses located outside the region,” he added. - TradeArabia News Service