Online shopping in UAE set to grow next year, survey shows
E-commerce and digital payments in the Mena region and Pakistan are poised to grow next year, with 45 per cent of consumers in the UAE expected to increase their online shopping frequency, according to a survey by Checkout.com.
The payments company said the trend pointed to a permanent shift in shopping habits.
The survey, which was released yesterday, polled more than 5,000 consumers in the UAE, Saudi Arabia, Egypt, Jordan, Qatar, Kuwait, Bahrain and Pakistan in September.
It revealed that 47 per cent of consumers in the eight countries intend to increase their online shopping next year, while 15 per cent predict it will fall and 38 per cent expect it to remain unchanged.
“While there has been a sudden surge in e-commerce and digital payments this year due to the impact of Covid-19, our report suggests what we are seeing today is more than a temporary change in consumer behaviour,” said Sebastian Reis, executive vice president of global e-commerce at Checkout.com.
“Our internal data shows an 86 per cent increase in digital payment transactions on our platform since the start of the pandemic in the region.”
This data echoes results of a study by Dubai Economy and Visa last week, which found that e-commerce transactions will account for 28.2 per cent of total card payments in the UAE this year.
The UAE had the highest annual expenditure per online shopper at $1,648 in the wider Mena region and South Asia, according to the study.
The Checkout. com report said 53 per cent of the region’s consumers preferred to pay for their online purchases through digital channels rather than cash on delivery (36 per cent) or bank transfers (10 per cent).
Digital payments were the most preferred payment method among online shoppers in the GCC, including Bahrain (74 per cent), Qatar (66 per cent), the UAE (64 per cent), Kuwait (59 per cent) and Saudi Arabia (54 per cent).
Meanwhile, cash on delivery was the preferred payment method for respondents in Pakistan (66 per cent), Egypt (54 per cent) and Jordan (51 per cent).
Among those who shopped online at least once a month, 62 per cent usually paid by card or digital wallet, compared with 44 per cent whose online shopping was less frequent, according to Checkout.com.
“Robust digital payment options have become an integral part of what consumers expect from merchants,” Mr Reis said.
“This presents a major opportunity for businesses across the [Mena region and Pakistan] region.”
About half, or 48 per cent, of online shoppers across the Mena region and Pakistan said a safe, secure and convenient payment process remained the most important factor for their online experience, apart from price. The respondents ranked payment process higher than fast delivery or shipping (32 per cent) or an easy return process (15 per cent).
Covid- 19 has hastened the growth of e-commerce, particularly in the online purchases of prepared meals, where 41 per cent reported a higher online shopping frequency since the pandemic began.
Clothing (37 per cent), groceries (33 per cent) and electronics ( 30 per cent) were other areas of increased purchases, the report found.
While online orders of prepared meals and groceries appeared to have increased evenly among males and females, men seem to be driving most of the e-commerce growth in electronics, while women account for a stronger increase in online clothing purchases.