This year, online payment solution provider PayFort released the State of Payments Report for 2014 in the Arab world. Although we had already published on Firnas an infographic for the company, offering an overview of the products that Saudi consumers buy online, the cities they buy from, and their preferred methods of payment, we are now addressing these things in more detail to give you deeper insights into the ecommerce sector of Saudi Arabia, and why merchants should go online. Basing our article on PayFort’s study, here are some reasons to make the move:
- Demographics
The study shows that more than 28 million people live in Saudi Arabia, of whom 15.6 million are internet users, and 3.9 million are making online transactions. The majority of these people are aged between 25 and 54.
Despite the low rate of online transactions, online credit card usage is expected to increase. Online transactions vary by gender with only 15% of buyers being females vs. 85% male. This difference will shrink with time; however, online merchants in Saudi Arabia and any other merchants who wish to enter need to better target women, whether through social media campaigns, targeted services, or any type of offered products.
There is also a difference in online transaction payments between Saudis and immigrants in the county. Accordingly, 32% of buyers are Saudis, vs. 59% who are non-Arab immigrants. The reason might be that the e-commerce concept is more popular in the West.
Original article by Reine Farhat
Continue reading at Wamda:
The future is bright, the future is ecommerce in Saudi Arabia
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