20 Dec

10 astounding e-commerce trends in the UAE, every entrepreneur must know

In light of recent tech developments and advancements, it's surprising to note that certain opportunities are indeed emerging, particularly within the business landscape of the United Arab Emirates (UAE). The nation has witnessed a remarkable transformation in the way people shop. Furthermore, the e-commerce industry has evolved at a breakneck pace, and staying alongside the latest trends is crucial for consumers and businesses alike.

Whether you're a shopper seeking convenience or an entrepreneur looking to tap into the growing market - here are the most compelling e-commerce trends that have been propelled into the spotlight by current circumstances in the UAE.

The mobile revolution

The nation is becoming more and more tech-savvy – And the mobile ecommerce sector is consistently growing in the UAE. With over 9.31 million mobile internet users in the country, it's no surprise that mobile devices have become the preferred means of online shopping. Statista reports that mobile e-commerce reached USD 2.2 trillion globally in 2023.

Continuation of current E-commerce trends

There's no turning back. Even post-COVID-19, consumers didn’t revert to their previous consumption habits. A study by Kearney Middle East found that 48% of respondents in the UAE and 69% in Saudi Arabia intend to continue relying on online stores for their purchases, even after the pandemic subsides. Welcome to the new way of life!

Rise of hyperlocal delivery

Speedy and convenient delivery options have become an optimal choice for consumers and driving the e-commerce industry in the UAE. Hyperlocal delivery services have gained prominence, offering same-day or even one-hour delivery options for customers. This trend is reshaping consumer expectations, and businesses are racing to meet these demands.

Personalized shopping experiences

With data analytics and AI-driven technologies, e-commerce businesses are tailoring shopping experiences to individual preferences. Personalized recommendations, product suggestions, and targeted marketing are becoming the norm. According to a report by MasterCard, 73% of UAE consumers prefer to buy from retailers who use their personal information to make shopping more relevant.

Virtual Try-Ons and augmented reality (AR)

Fashion industry ventures on the other hand are surprisingly enhancing the online shopping experience of customers. Virtual try-on tools and augmented reality apps are revolutionizing the way people shop for fashion and beauty products. Consumers can virtually try on clothing, makeup, and accessories - this trend not only boosts consumer confidence but also reduces return rates.

E-commerce in social media

Social media platforms have become powerful e-commerce tools in the UAE. Brands are leveraging platforms like Instagram and Facebook to showcase products and provide seamless shopping experiences. Consumers can now shop directly from social media posts, making the buying process more convenient and immediate.

Expanding payment options

The UAE is diversifying its payment landscape, with the government pushing for digital payment adoption. Beyond traditional cash on delivery, digital wallets, contactless payments, and even cryptocurrencies are gradually gaining acceptance in e-commerce transactions. According to the digital payment report by Statista, the Total transaction value in the digital payments market of UAE is projected to reach USS 28.74 billion in 2023.

E-commerce regulations

The UAE government is actively working on e-commerce regulation to enhance consumer protection and business transparency. This initiative aims to foster trust among online shoppers and maintain the growth of the e-commerce sector.

The dominance of grocery e-commerce

During COVID-19, more and more people tend to buy their groceries online because the whole nation was under lockdown. Grocery e-commerce is booming, with consumers preferring to have their daily essentials delivered to their doorstep. According to a market insight report by Statista, the online grocery market in the UAE is expected to reach USD 554 million by 2023.

Seizing the digital revolution

The good news is that becoming part of the digital revolution is accessible and uncomplicated. You can trade almost anything online, whether it's products or services, often requiring only a minimal investment. Various options exist for setting up an e-commerce business in the UAE, with numerous packages to choose from to meet your specific requirements.

Even if you want to test the market initially, the safer option of drop shipping is available. Essentially, this means your role is to post and sell in-demand products online, and someone else handles fulfilment on your behalf. You can easily operate from a co-working space in the UAE and later expand to acquire your storage and fulfilment facility as your business grows. It's that straightforward!

Start your e-commerce journey with RAKEZ

No matter which path you choose, one thing is certain - the e-commerce sector will continue to experience unprecedented growth during and after the ongoing global health crisis. This is undoubtedly the segment you want to be a part of, and who knows? Consumers might already be online, searching for something that only you can offer.

Ras Al Khaimah Economic Zone (RAKEZ) serves as a perfect supporter for startups and SMEs, providing an environment that streamlines the process of establishing businesses in the UAE's free zone. When you choose to launch your business with RAKEZ, our team of experts will guide you every step of the way, from obtaining an e-commerce license to achieving your business goals.

For a complimentary consultation with our business set-up specialists, please don't hesitate to reach out at +971 7 2041111 Or email us at info@rakez.com.


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Last Updated on 12/29/2019 9:23:05 PM

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