UAE- 'Tis the season to shop online


(MENAFN- Khaleej Times)

Want to find a couple of good deals but avoid the rush of shoppers in the mall? Shop online. Want to get exclusive early deals and limited products? Shop online. Want to shop for your favourite brands during sales and have the items delivered to your doorstep? Shop online.

The popularity of online shopping and the ease of online payments in the Middle East has led to an increase in the number of shoppers opting to purchase their products and services through the Internet. In the UAE and GCC a dynamic young population coupled with one of the highest global per capita Internet penetration levels has led the online spending potential to quickly emerge as one of the highest in the world. Young and tech-savvy shoppers in the region order anything from books and household items to the latest electronics all from the comfort of their homes.

E-commerce is all set to be a megatrend for businesses in the UAE and is expected to be valued at $10 billion by 2018 according to Frost& Sullivan. Currently the total value of e-commerce in the UAE is estimated at $2.5 billion. According to PayPal there are 110 million Internet users in the Middle East and North Africa of which 30 million are shopping online already. Spending online in the Middle East and North Africa was $9 billion in 2012 and is forecast to grow to $15 billion by 2015 of which $3 billion will be spent on mobiles.

Statistics show that travel tickets are currently the biggest spend for online shoppers in the Middle East with an average of $1521 spent each year followed by $250 on consumer electronics. Trade between online shoppers in the Middle East and businesses based in the region makes up only 10 per cent of total spend. The rest is consumers buying from outside the Middle East and delivering to the region. In addition Souq.com eBay and Amazon emerged as the most popular shopping sites along with Cobone and Namshi.

Moe Khan head of communities at WSF Creative told Khaleej Times how he had noticed a definitive increase in the number of people shopping online in the UAE.

"I can't think of anyone I know who doesn't shop online anymore" he said. "I probably order more stuff from outside of the UAE than I actually buy here. EBay is literally a black hole of stuff you shouldn't be spending money on but do anyway" he said.

Asked how often he shops online Khan said: "At least once a month but I buy pretty varied items. My favourite thing to buy are diecast cars but I also buy a fair amount of running gear. Also I'm a card guy. This always gets me into trouble since I never have cash on me when I need it but I really think society has reached a point where we can move beyond paper currency. Cashless is the future and it isn't terribly difficult to implement."

However Khan also noted that the online shopping experience in the UAE is a mixed bag. "It's interesting that some sites offer a great Web experience but awful customer support and others offer the complete opposite of that" he said.

MasterCard's 2015 Online Shopping Behaviour study which measures consumers' propensity to shop online and is based on Interviews with 4000 respondents across eight markets in the Middle East and North Africa indicated that nearly half of the respondents had made an online purchase during the three months prior to the study of which 78 per cent were satisfied with their online shopping experience.

Respondents indicated a slight preference for local websites over foreign portals citing a fear of hidden charges from retailers and the ability to find all the products they need locally as the main reasons for shopping on local websites. Respondents also highlighted that the most important factors impacting their online shopping decisions were the price and value of the items on offer the security of the payment facility and the reputation of the website.

"Online shopping has increased a lot during sale periods in the last couple of years. People love to get the items delivered at their doorsteps and the good thing about it is that you don't have to wait in long queues for the payment. Many of my friends and colleagues are using online shopping not only for buying merchandiser goods but also for online training books and tickets and prefer the delivery to be at their workplace which is really convenient" said Mohammad Asjad a telecom engineer and frequent online shopper.

Asjad also said that he mostly shopped for electronics such as smart phones and tablets as they are offered on a discounted price with a two years warranty.

"Souq.com eBay and Amazon are the primary ones which I've been using since the last three or four years. I use paypal as a payment method for eBay and Amazon and for Souq.com I prefer using a credit card as I get an option to settle the payment in installments without any interest."

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