75% of UAE online shoppers still prefer to pay on delivery

Study calls on e-commerce firms to work with payment providers to increase trust
75% of UAE online shoppers still prefer to pay on delivery
By Staff writer
Wed 02 Nov 2016 11:32 AM

Online shopping is on the rise in the UAE, but the majority prefer to pay on delivery with either cash or card, a new study reveals.

The report by e-commence company AWOK.com noted that industry analysts have previously expressed concerns that cash-on-delivery is less efficient and has higher rates of product return than advance payment online.

It cited a paper by Gartner this year that said: “About 80 percent of online shopping in Middle East is done using cash-on-delivery. This makes the transaction less efficient, takes a longer time to complete the delivery, and tends to have a higher return rate.”

AWOK.com said: “There is a great opportunity for e-commerce businesses and payment providers to work closer to offer multiple payment options that consumers in the UAE can use safely and conveniently.

“We have seen an increase in the percentage of customers choosing to pay online, which indicates growing trust among consumers in this sector.”

AWOK.com’s study claimed that 80 percent of visitors to its online shopping website over the last 12 months used mobile phones to place their orders, 18 percent used desktop computers, and 2 percent used tablets.

However, only 25 percent opted to pay online, the study said, suggesting low levels of trust in digital payment systems among consumers.

 

Ulugbek Yuldashev, owner and managing director of AWOK.com said: “Given the increasing appetite for online and mobile shopping in the country, responsible digital retailers are committed to improving systems to offer seamless and more secure online shopping processes for customers.”

The study also highlights that online shopping is significantly more popular among men than women in the UAE – 74 percent of shoppers on AWOK.com are male, while 26% are female, and the typical online customer is between 25 to 34 years old.

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