GCC B2C E-Commerce Market 2018

  • ID: 4470346
  • Report
  • Region: Middle East
  • 105 pages
  • yStats GmbH & Co. KG
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B2C E-Commerce in the GCC to Double by 2020, says Report

FEATURED COMPANIES

  • Alibaba Group
  • Amazon.com Inc
  • Awok.com
  • Dubizzle
  • eBay Inc
  • Fetchr
  • MORE

 The new market report, “GCC B2C E-Commerce Market 2018,” details the current status and projections for online retail sales in the six nations comprising the Cooperation Council for the Arab States of the Gulf (GCC). The publication includes a forecast that online retail sales volume in 2020 will be twice the level of 2017.

There is much room for growth of B2C E-Commerce in the Cooperation Council for the Arab States of the Gulf (GCC). Online retail makes up only a small single digit percentage of total retail sales in even the UAE, the current online sales leader of the group. Surveys cited in the report suggest that many potential shoppers in the well Internet connected nations of the GCC do not trust B2C E-Commerce nor online payment methods. Because of the low online shopper penetration in the recent past, growth rates are expected to be robust over the next few years, amounting to more than 100% growth in sales in 2020 compared to 2017. Investments in the region by Amazon.com as well as efforts of local merchants are making shoppers aware of the opportunities and benefits of online purchasing.

The UAE and Saudi Arabia are the current leaders in online sales volume in the Gulf Region, and with a higher growth rate, the Kingdom is forecast to overtake the UAE in the number one position by 2020. Although smaller in size, online retail markets in other countries of the region are also expected to show strong growth, according to projections in this publication.

Key Questions Answered

  • What are the largest B2C E-Commerce markets in the GCC?
  • How high are the GCC online retail sales projected to be in 2020?
  • Which factors contribute to the growth of B2C E-Commerce in the GCC and what are the main barriers?
  • Which payment methods are preferred by online shoppers in this region?
  • What are the most popular online shopping websites in countries of the GCC?
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FEATURED COMPANIES

  • Alibaba Group
  • Amazon.com Inc
  • Awok.com
  • Dubizzle
  • eBay Inc
  • Fetchr
  • MORE

1. Management Summary

2. Regional
Retail E-Commerce Sales in the GCC, by the UAE, Saudi Arabia and Other GCC Countries, in USD billion, 2015 – 2020f
Breakdown of Retail E-Commerce Sales in the GCC, by Countries, in %, 2015 & 2020f
Internet Penetration, in % of Individuals, by Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE, 2016
Smartphone Penetration, in % of Adults, by Qatar, Saudi Arabia, and UAE, March 2017
Devices Used to Access the Internet, in % of Adults, by Qatar, Saudi Arabia, and UAE, March 2017
Breakdown of Devices Used for Browsing & Researching and for Purchasing & Checkout, in % of Online Shoppers in the GCC, October 2016
Breakdown of Frequency of Webrooming and Showrooming, in % of Online Shoppers in the GCC, October 2016
Breakdown of Payment Methods Preferred in E-Commerce, in % of Online Shoppers in the GCC, October 2016
Share of Local Millennials in the GCC Buying From Local and from International Sites, in %, July 2017
Product Categories to Purchase Online, in % of Local Millennials in the GCC, July 2017
Top 3 Barriers to Online Shopping, in % of Local Millennials in the GCC Who Did Not Shop Online, July 2017

3. UAE
3.1. Overview
B2C E-Commerce Market Overview and International Comparisons, January 2018
3.2. Trends
Devices Used to Access the Internet, in % of Adults, March 2017
Share of Online Shoppers Who Purchased via Smartphone, in %, October 2016
Breakdown of Online Shoppers by Domestic Shoppers Only, Domestic and Cross-Border Shoppers, and Cross-Border Shoppers Only, in %, October 2016
Top Reasons for Buying From Top 3 Foreign Markets, in % of Online Shoppers in the UAE Buying From the Respective Market, October 2016
3.3. Sales & Shares
Retail E-Commerce Sales, in USD billion, 2015 – 2020f
E-Commerce Sales, by Airlines, Retail, Entertainment, and Travel, in USD billion, 2015 & 2016
B2C E-Commerce Sales, in AED billion, 2016, 2017 & 2021f
B2C E-Commerce Share of Total Retail Sales, in %, 2015 & 2016
3.4. Users & Shoppers
Internet Penetration, in % of Individuals, 2011 - 2016
Online Shopper Penetration, in % of Internet Users, 2015 & 2016
Breakdown of Preferred Channels for Shopping, by In-Store and Online, in % of Consumers, January 2017
Breakdown of Frequency of Shopping Online, in % of Respondents, 2016
3.5. Products
Product Categories Purchased Online, in % of Online Shoppers, 2016
Top Product Categories Purchased Online, in % of Online Shoppers, 2016
3.6. Payment
Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, 2016
3.7. Delivery
Retailers’ Perceptions of Customers’ Attitude to E-Commerce Delivery, in % of Respondents, October 2017
3.8. Players
B2C E-Commerce Players Overview, January 2018
Market Share of Amazon and Souq in B2C E-Commerce, in %, 2015 & 2016
Top 5 Online Shopping Websites, incl. Total Number of Visits, in millions, UAE’s Share of Total Visits,  in %, Average Visit Duration, Pages Per Visit and Bounce Rate, December 2017

4. Saudi Arabia
4.1. Overview
B2C E-Commerce Market Overview and International Comparisons, January 2018
4.2. Trends
Devices Used to Connect to the Internet, in % of Adults, March 2017
Share of Online Shoppers Who Make Purchases via Smartphone, in %, May 2017
Share of Online Shoppers Who Purchased via Social Media Sites or Applications, in %, May 2017
Origins of Online Purchases Made in the Previous 12 Months, in % of Online Shoppers, May 2017
4.3. Sales & Shares
B2C E-Commerce Sales, in SAR billion, 2016 and Annual Growth Forecast for the Next Years, in %, as of August 2017
E-Commerce Sales, by Airlines, Retail, Entertainment, and Travel, in USD billion, 2015 & 2016
Retail E-Commerce Sales, in USD billion, 2015 – 2020f
B2C E-Commerce Share of Total Retail Sales, in % 2017e
4.4. Users & Shoppers
Number of Internet Users, in millions, and Penetration, in % of Individuals, 2011 – 2016 & Q2 2017
Online Shopper Penetration, in % of Respondents, May 2017
Breakdown of Frequency of Shopping Online, in % of Online Shoppers, May 2017
Breakdown of Perception of Security of Online Shopping, by Online Shoppers and Non-Online Shoppers, May 2017
4.5. Products
Product Categories Purchased Online, in % of Online Shoppers, 2016
Channels Used to Purchase Selected Product Categories, by Online, Offline and Both, in % of Respondents, May 2017
Channels Used to Purchase Selected Categories of Services, by Online, Offline and Both, in % of Respondents, May 2017
4.6. Payment
Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, 2016
Breakdown of Payment Methods Most Used in Online Shops According to E-Commerce Merchants, in % of Surveyed E-Commerce Merchants, June 2017
4.7. Delivery
Problems Most Commonly Encountered by E-Commerce Merchants, in % of Surveyed E-Commerce Merchants, June 2017
4.8. Players
B2C E-Commerce Players Overview, January 2018
Website Traffic Shares of the Leading Online Shopping Websites, in %, February 2015 & February 2017

5. Qatar
5.1. Overview
B2C E-Commerce Market Overview and International Comparisons, January 2018
5.2. Trends
Devices Used to Access the Internet, in % of Adults, March 2017
5.3. Sales & Shares
Retail E-Commerce Sales, in USD billion, 2015 & 2020f
B2C E-Commerce Sales, in USD billion, 2015 - 2020f
5.4. Users & Shoppers
Internet Penetration, in % of Individuals, 2011 - 2016
5.5. Products
Product Categories Purchased Online, in % of Online Shoppers, 2016
5.6. Payment
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, 2016
5.7. Players
Top 5 E-Commerce Websites, by Rank, December 2017

6. Kuwait
6.1. Overview
B2C E-Commerce Market Overview and International Comparisons, January 2018
6.2. Sales & Shares
E-Commerce Sales, by Airlines, Retail, Entertainment, and Travel, in USD million, 2015 & 2016
Retail E-Commerce Sales, in USD billion, 2015 & 2020f
6.3. Users & Shoppers
Internet Penetration, in % of Individuals, 2011 - 2016
Online Shopper Penetration, in % of Internet Users, January 2016
Attitudes Towards Online Shopping, in % of Respondents, January 2016
6.4. Products
Product Categories Purchased Online, in % of Online Shoppers, 2016
6.5. Payment
Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, 2016

7. Bahrain
7.1. Overview
B2C E-Commerce Market Overview and International Comparisons, January 2018
7.2. Trends
Selected Device Ownership, in % of Respondents, 2016
Mobile Shopper Penetration, in % of Respondents, 2016
7.3. Sales & Shares
Retail E-Commerce Sales, in USD billion, 2015 & 2020f
7.4. Users & Shoppers
Internet Penetration, in % of Individuals, 2011 - 2016
Activities Carried Out Online, incl. Online Shopping, in % of Internet Users, 2016
Barriers to Shopping Online, in % of Non-Online Shoppers, 2016
7.5. Products
Product Categories Purchased Online, in % of Online Shoppers, 2016

8. Oman
8.1. Overview
B2C E-Commerce Market Overview and International Comparisons, January 2018
8.2. Sales & Shares
Retail E-Commerce Sales, in USD billion, 2015 & 2020f
8.3. Users & Shoppers
Internet Penetration, in % of Individuals, 2011 - 2016

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FEATURED COMPANIES

  • Alibaba Group
  • Amazon.com Inc
  • Awok.com
  • Dubizzle
  • eBay Inc
  • Fetchr
  • MORE

GCC B2C E-Commerce Sales to Grow More Than +100% by 2020

B2C E-Commerce in the six member nations of The Cooperation Council for the Arab States of the Gulf (GCC) is in early stages of development. Even in the UAE, the largest online retail market of the pack, E-Commerce accounts for a small one-digit percentage share of total retail sales. Starting off from this low base, online retail in the GCC is projected to see robust growth rates over the the next several years. By 2020, retail E-Commerce sales of the GCC countries are projected to be more than two times higher than in 2017, according to a projection cited in the report.

The UAE and Saudi Arabia currently make the largest contributions to the region’s rising B2C E-Commerce sales. While the UAE was ahead of the Kingdom in terms of online retail revenues as of 2017, higher growth rates are projected to propel Saudi Arabia to the leading position in the GCC B2C E-Commerce by 2020, with the UAE moving to the second place. Qatar and Kuwait are projected to rank next, followed by Bahrain and Oman. Market data and surveys cited in the report indicate that interest in online shopping is high among connected consumers in the GCC, but many of them hesitate to buy over the Internet due to lack of trust in E-Commerce and digital payment methods. For example, in Bahrain, searching for information about products and services is among the top online activities, but online shopper penetration reaches less than one-third of Internet users. Also in countries with higher online shopper penetration rates, such as the UAE and Saudi Arabia, the frequency of buying online remains low, with the majority of shoppers making purchases at online stores less than once a month. 

A survey of GCC millennials conducted in 2017 revealed that not being comfortable with online payments was the main barrier to buying online. Cash on delivery is the preferred method of payment in the GCC, outranking credit cards by a high margin. Furthermore, the local E-Commerce offering remains limited, especially in smaller markets, while international E-Commerce platforms such as Amazon.com, eBay.com and AliExpress.com rank among the most visited websites in these countries. Amazon boosted its presence in the region with the purchase of Souq.com in 2017, a major regional online marketplace based in the UAE. The competition is expected to intensify as local rivals attract investments and international players take notice of the fast developing B2C E-Commerce market.

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  • Alibaba Group
  • Amazon.com Inc
  • Awok.com
  • Dubizzle
  • eBay Inc
  • Fetchr
  • Jarir Bookstore
  • Middle East FZ-LLC
  • Noon E Commerce
  • Souq.com FZ-LLC
  • Wadi.com
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