Topic of the week – eCommerce in the United Arab Emirates
Since 2020 the eCommerce market value in the UAE (United Arab Emirates) has been steadily increasing reaching over $6.2 million USD in 2023. The UAE has the largest eCommerce share of total retail in the Middle East and North Africa at 16%. But what is fueling this market? What are the key demographics to look out for? And what do customers in the UAE prefer to buy and how?
On average, eCommerce users in the UAE will spend $1,590 across a range of market sectors according to Statista. Overall the UAE contains about 3.3 million eCommerce users, but who are they. Let’s get to know them a bit better. Out of all of these potential customers, 69.9% prefer to shop on their mobile phones whilst the remainder opt for desktop shopping. Coming in second worldwide at 77%, UAE shoppers prefer to go from shopping inspiration to purchase as soon as possible, meaning that these are shoppers that likely know what they want and are pretty decisive. This form of shopping is called compressed commerce. UAE online shoppers prefer to read customer reviews before purchasing (59%), with others conducting internet research before clicking buy (55%).
When buying online, card payments are the most popular payment method (48%), followed by online wallets, such as Apple Pay and Google Wallet etc (23%). But what are people actually buying online? Well, the Toys, Hobbies and DIY sector leads the way in the UAE, in terms of market share, at 29%, closely followed by the Fashion segment (27%) with Electronics and Media trailing behind at 18%. The most popular products, however, consist of Clothing (55%), Shoes (45%) and Bags/Accessories (42%). With this in mind, it is not just brand new products that UAE shoppers want. The ReCommerce market has been showing promising growth over the last few years, currently sitting at $830.2 million, and is predicted to see over 20% growth by the end of 2025. Most users are shopping for ReCommerce Fashion items however, the highest average revenue per user sits within ReCommerce Furniture at $510.80.
When shopping online, delivery speed is key for UAE consumers, with most expecting a fast service. 39% of online shoppers prefer express shipping when buying something online.
Whilst this is just a brief overview of this fast growing market, it highlights the potential that is held within it. Not only are consumers spending more on average than other markets, but the adoption of technology and ReCommerce make the UAE eCommerce market a modern one, which is reflected in the preferences of its consumers.
In other news
New earnings results are out from retailers in Digital Commerce 360’s Top 1000 list. In the Health & Beauty category, Johnson & Johnson reported year-over-year growth. Results for others, including Birks Group, Goodfood Market and Winmark, were mixed.
eCommerce Market Stats
See some statistics relating to this week’s topics in the eCommerce market below.
United Arab Emirates eCommerce stats
Revenue in the UAE eCommerce Market is projected to reach US$6.98bn in 2024.
Revenue in the UAE is expected to show an annual growth rate (CAGR 2024-2029) of 8.63%, resulting in a projected market volume of US$10.56bn by 2029.
In the UAE eCommerce Market, the number of users is expected to amount to 5.7m users by 2029.
User penetration in the UAE will be 46.7% in 2024 and is expected to hit 58.0% by 2029.
The average revenue per user in the UAE is expected to amount to US$1,590.00.
*Statistics sourced from Statista
That’s all for this week…
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