E-commerce Revolution in Saudi Arabia

E-commerce, in its simplest form, refers to the process of buying and selling products and services over the internet, which involves the transfer of funds and data to complete the purchase process. Thus, any store that sells products and services over the internet can be classified as e-commerce, regardless of its size, from small online stores on platforms such as Etsy to large brand websites like Amazon.

The Best Tools

With the availability of worldwide e-commerce builders’ platforms like Shopify, WooCommerce, and Local such as Zid and Salla, anyone can quickly set up an e-commerce store. Payment gateway providers also offers Tiny e-stores so individuals can receive payments seamlessly through an easy setup. One of the best examples of this is Paylink, which provides a 3-in-1 solution including a simple e-commerce store, a checkout page to process payments from all over the world, and invoices that comply with local ZATCA regulations.

In line with Saudi Vision 2030, the Saudi government supports digital transformation. The e-commerce sector is one of the emerging and promising sectors at the same time in Saudi Arabia. This sector is going through a huge growth boom, as e-commerce in Saudi Arabia is expected to exceed $15 billion by 2025, in addition to an increase in online sales by 60% on average annually across all categories, and 88% of CEOs in the Middle East and the Kingdom will turn to transformation digital in the coming years.

How is the kingdom reducing the difference between e-commerce and traditional trade?

The retail sector is constantly seeking new strategies and sales methods, using various sales channels to keep up with the development of the global market. Among the most prominent strategies is digital orientation, which has become a priority for a large proportion of retailers. This growing trend towards e-commerce is in the interest of customers and consumers, as it provides more convenience and a customized shopping experience for each customer.

To provide a unique and seamless online shopping experience, merchants work to unify their digital channels. Although this strategy is not easy, they also need to bridge the gap between e-commerce and customer experiences in physical stores. Here are some points that may help facilitate a smooth digital transformation and ensure successful shopping experiences:

(1) Understand the customer journey:

The recent events and crisis we had shifted the global economy and driven the expansion of e-commerce and digital transformation to meet the needs of customers. To meet these needs, data can be used to understand the customer’s behavior during the online shopping journey, study changes in the incentives and preferences of customers, and analyze the performance of each digital channel, public and individual offers, images, content, and the customer’s interaction with them. The more you understand the customer, the easier it will be to identify barriers to digital transformation and improve the customer experience. Relying on the data you have can guide your next steps.

(2) Support modern purchase options:

Customers use different channels and devices when shopping online. Some tend to search online and browse the goods offered and then complete the purchase process in the physical store, while others may use physical stores as showrooms to inspect the products before making the purchase through an online store. Every customer has different needs, and the merchant must meet as many of these needs as possible.

From this principle, many stores have provided several options and channels for digital payment operations, such as the possibility of paying by credit card or through digital wallets such as STCPay and URPay or seamlessly using Apple Pay, and other payment methods. The merchant or project owner can provide these options to their customers by choosing integrated financial payment gateways that meet their customers’ desires, such as the Paylink we mentioned earlier were it process payments and offer payment links, for physical stores hence the name.

(3) Localize digital experiences:

Regardless of the product or service that the customer wants to buy, they are always looking for a unique and personalized buying experience. Efforts must be made to provide relevant information and help them decide. The same is true for international companies; e-commerce customers should be considered at the local level, and special experiences should be allocated by localizing digital expertise. Local influencers can be used in advertisements, and it is also possible to interact with customers through social networking sites about local events and news, as well as digital fashion shows of a local nature.

In conclusion

Internet connection and a digital device that you can browse through the search engine is all you need to access various goods and services around the world. With the large spread of e-commerce and the increasing demand for it, the competition between traditional stores and online stores is still determined by the requirements of customers that the merchant must follow and meet and provide the required buying and selling channels.

And for all those interested in e-commerce in Saudi Arabia, they must take into account the provisions and controls of the Saudi e-commerce system and work with it, and see the penalties for violating these regulations, all this information and more is available on the website of the Ministry of Commerce.