A poll of online shoppers has revealed that 74 percent said they would spend more online shopping in 2022, according to global e-commerce accelerator Pattern.
A total of 19 percent expected to spend the same as in 2021, and just 6 percent expected to spend less. The findings are included in Pattern’s UAE Shopper Report 2022.
The results back up predictions of the growth in the UAE’s ecommerce market size from US$10 billion in 2021, to US$17 billion in 2025, according to Kearney.
More respondents expected to purchase online this year from Amazon or Noon than other online retailers for every major product category, including fashion, consumer electronics, home, kitchen and beauty.
UAE online shoppers want fast delivery, with 39 percent of them wanting products delivered the next-day or quicker. A total of 20 percent want products delivered to them the same day they order it.
Most shoppers buy from Amazon, according to Pattern, with an overwhelming majority of 94 percent of UAE online shoppers polled reported purchasing from at least one Amazon site in the last 12 months.
Pattern’s MENA General Manager David Quaife said “One reason for Amazon’s broad customer base is likely the strong take-up of Prime membership to get fast and free delivery. 67 percent of Amazon.ae shoppers have either their own Prime membership or access to someone else’s Prime account.”
Customers are also purchasing cross-border, with 89 percent of those polled stating that they had purchased a product online that was delivered from another country during 2021.
“This shows that local retailers and marketplace sellers could grow their sales by expanding ranges with products not yet sold locally,” Quiafe added .
Online marketplaces are proving to be crucial channels for consumer brands to be visible in the UAE.
“The UAE is lucky to have two such strong businesses at the forefront of developing the e-commerce market,” Quaife told Arabian Business.
“In many other international markets there is only one main player, either Amazon or a local alternative. Because the market is growing quickly there is still plenty of room for omnichannel retailers, online-only retailers and brands’ own websites, but they will need a clear value proposition to compete with Amazon and Noon.”
He said the e-commerce market was less developed in the UAE compared to the US,
Europe and China, in terms of the percentage of total retail sales that are online.
“This will change quickly because of the steeper upwards growth curve for ecommerce in the UAE.”
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