The increase in online consumer spending in the UAE was largely fuelled by a 21 percent year-on-year increase in the number of online shops available, latest findings by Mastercard indicated.
This jump in spending across the Emirates is also driven by a 44 percent year-on-year increase in number of high-volume e-commerce trading partners from 2019 to 2020, according to Mastercard’s latest Recovery Insights report.
The results follow a year spent purchasing nearly everything online, from groceries to gardening supplies, as coronavirus kept consumers around the world in their homes.
According to the financial services giant Mastercard’s report, this situation resulted in an additional $900 billion spent on retail online around the world in 2020, meaning that last year e-commerce made up roughly $1 out of every $5 spent on retail, up from about $1 out of every $7 spent in 2019.
For retailers, restaurants and other businesses regardless of their size, being able to sell online provided a much-needed lifeline as in-person consumer spending was disrupted.
“While consumers were stuck at home, their dollars travelled far and wide thanks to e-commerce,” said Bricklin Dwyer, Mastercard chief economist and head of the Mastercard Economics Institute.
“This has significant implications, with the countries and companies that have prioritised digital continuing to reap the benefits. Our analysis shows that even the smallest businesses see gains when they shift to digital,” he continued.
Globally, roughly 20 to 30 percent of this coronavirus-inspired shift to digital is expected to be permanent, according to the report.
Bricklin Dwyer, Mastercard chief economist and head of the Mastercard Economics Institute
This is especially true for grocery store and digital gains which look “sticky” (more likely to last after the pandemic). Essential retail sectors, which had the smallest digital share before the crisis, saw some of the biggest gains as consumers adapted.
With new consumer habits forming, and given the low pre-Covid user base, Mastercard anticipates that globally 70 to 80 percent of the grocery e-commerce surge to stick around for good.
Other trends uncovered by the report are:
Global international ecommerce spending rose by 25 to 30 percent from March 2020 through February 2021 as consumers had infinitely more choices at their fingertips during the pandemic.
Mastercard’s analysis showed that consumers are making purchases at a greater number of websites and online marketplaces than before
Reflecting expanded consumer choice, Mastercard’s analysis showed that consumers worldwide are making purchases at a greater number of websites and online marketplaces than before.
Countries including Italy and Saudi Arabia have 33 percent more online stores, on average, followed closely by Russia (29 percent), UK (22 percent) and the UAE (21 percent).
The report draws on anonymised and aggregated sales activity in the Mastercard network and proprietary analysis by the Mastercard Economics Institute. The analysis dives into what this means by country and by sector, for goods and services, and within countries and across borders.
Follow us on
