Nearly 80 percent of UAE shoppers research products in one place but buy elsewhere, according to a new survey.
E-commerce and direct-to-consumer specialist CNNB Solutions commissioned the YouGov survey of 1,000 UAE shoppers. It found that eight out of 10 shoppers research products in one place (store, online marketplace, brand website), but buy through another retail channel.
CNNB Solutions co-founder and CVO, Nicolas Bruylants, said: “This represents a huge opportunity for both online and offline retailers to enhance the customer experience, differentiate themselves from competition, and close the sale from the first moments of interest.”
The survey also uncovered UAE online shopping preferences, with same-day delivery, free delivery and ease of returns and refunds the three most important e-commerce shopping considerations.
Further results included that Emiratis are the most likely nationality group to research and buy through different channels, topping seven of the eight surveyed categories.
Meanwhile, parents are the most likely to purchase from the first retail channel they find a product. Across all eight surveyed product categories the most popular answer was that people had researched products online but then bought in-store, demonstrating a disconnect in the effectiveness of the e-commerce buying journey which brands must solve.
There was an estimated $5bn (AED18.4 billion) of online retail sales in the UAE in 2021, but 30 percent of items were returned and refunded.
CNNB Solutions estimates e-commerce businesses are processing over $1.5bn in returns every year. But through managed e-commerce solutions, such as tailored brand.com websites and managed online marketplaces, average return rates can be less than 1 percent, it said.
Bruylants added: “Returns are an important problem for brands, as the cost of returns, refunds and waste need to be reduced to the minimum.”