Global eCommerce sales are expected to increase over the next years and so will it in Saudi Arabia. Statista Digital Market Outlook has predicted that the compound annual growth of the regional eCommerce market in Saudi Arabia for the next four years (CAGR 21-25) will be 5% as compared to the global average of 16%. Saudi Arabia was at the 27th post of the leading eCommerce markets with a revenue of US$7.7 billion in 2021.
As more and more new markets are emerging, global growth will continue to propel in East and Southeast Asia with their growing middle class and offline infrastructure.
eCommerce Trends observed in Saudi Arabia
- 69% of the Saudi consumers have bought at least one product online in 2021.
- Fashion is the largest segment in Saudi Arabia accounting for 32% of the total eCommerce hub revenue in Saudi Arabia. It is followed by Electronics & Media with 32%, Food & Personal Care with 21%, Toys, Hobby & DIY with 10%, and Furniture & Appliances with the remaining 5%.
- According to Boston Consulting Group (BCG) and Meta, in 2020, online sales accounted for six percent of the total retail sales in Saudi Arabia.
- By 2024, the number of Saudi internet users for eCommerce both selling and buying, is expected to reach 33.6 million, an increase of 42 percent from 2019.
- Saudi Arabia boasts one of the highest smartphone penetration rates (97 percent) in the world, its mobile broadband internet subscriptions are the highest in advanced markets, and it ranks tenth in the world for the fastest internet speed.
As per Statista:
- Commerce revenue in the eCommerce industry is anticipated to reach US$11.74bn in 2022.
- Revenue is expected to show an annual growth rate (CAGR 2022-2025) of 19.51%, resulting in a projected market volume of US$20.04 billion by 2025.
- In the eCommerce market, the number of users is expected to amount to 26.4m users by 2025.
- User penetration growth reached to 61.5% in 2022 and is expected to hit 70.9% by 2025.
- The average revenue per user (ARPU) is expected to amount to US$532.80.
- Amazon Saudi Arabia has become a source of rising retail growth in Saudi Arabia. Prime members in Saudi Arabia enjoyed some incredible offers, Day Delivery, and savings during the two-day shopping event on Amazon.sa in July 2022. Amazon supports Saudi entrepreneurs and sellers creating hundreds of job opportunities within the local eCommerce logistics sector.
Top online eCommerce stores in Saudi Arabia
- The biggest player in the Saudi Arabian eCommerce market is com. The store reported a revenue of US$153 million in 2021.
- Next is sa with US$124 million
- and com is the third largest store with US$105 million.
Top shipping service providers
- Aramex ranks at the top as the most frequently offered delivery service provider at 42%.
- Followed by DHL at 27% and
- UPS at rates of 15%.
Top fashion Online eCommerce players in Saudi Arabia
Top personal care online stores in Saudi Arabia
Top consumer electronics online stores in Saudi Arabia
Let’s conclude
Saudi Arabia possesses enormous potentials for the eCommerce market to flourish. Through Vision 2030, this nation aims to look beyond from fossil-fuel production, and encourage traditional retail players to expand the eCommerce businesses. As a result, the kingdom has witnessed over 60 % increase in online sales annually.
eCommerce Condition Post-Covid in Saudi Arabia has seen positive rise. The pandemic also played a vital role in pushing brick and mortar stores to online presence.
Challenges that still hinder the Saudi Arabia’s eCommerce industry are development issues in telecommunications, internet, regulatory framework, and financial services industries. To overcome these, the government has recently launched supportive commerce laws to redefine the operations and enhance the kingdom’s eCommerce growth.
247 Commerce has started operating in Saudi Arabia in partnership with Al Khaleej group. And is ready to provide digital consultation for the businesses in the Saudi market.
ECommerce market Saudi Arabia – data, trends, top stores. (n.d.). Retrieved September 2, 2022, from https://www.ecommercedb.com/en/markets/sa/all
(n.d.). Saudi Arabia – ecommerce. International Trade Administration | Trade.gov. Retrieved September 2, 2022, from https://www.trade.gov/country-commercial-guides/saudi-arabia-ecommerce
Writer, S. (2022, July 24). E-commerce continues to become source of retail growth in Saudi Arabia. ZAWYA. Retrieved September 2, 2022, from https://www.zawya.com/en/business/retail-and-consumer/amazon-e-commerce-continues-to-become-source-of-retail-growth-in-saudi-arabia-ugjscarz
