Ecommerce is definitely the segment every investor wants to join! And why not, when their consumers are already online, searching for something they can only offer? If you too are planning for an e-commerce business setup in UAE, this is the right time to start.
The word ‘pandemic’ does not bring any hope but despair. In 2020, we saw how COVID-19 brought the entire world to a standstill, the aftereffect of which can be still felt in our surroundings. The pandemic compelled the governments around the globe to impose lockdown, and businesses were forced to restrict their operations. People and businesses that could operate from home started functioning from home. Many companies couldn’t stand this limitation and closed permanently, while some found an opportunity in the adverse situation. And UAE was one of the few nations that saw many sectors finding options to sustain and become an inspiration in the UAE business landscape.
If you take a closer look at the e-commerce industry, it is one of the fastest-growing sectors in the United Arab Emirates that discovered the massive potential in the current situation.
Social Distancing and Lockdown Drove E-commerce Growth
With the government, authorities, and healthcare fraternity urging people to practice social distancing to curb the spread of the virus, a growing number of consumers are now switching to online shopping instead of visiting stores physically.
As per a recent study conducted by Dubai Police, Dubai Economy and Visa in the UAE, out of the total people who participated in the survey, 68% reduced visits to physical stores since the beginning of the outbreak, while 49% are shopping online. We can understand the future of retail from these figures.
Trust in Digital Transactions is Growing
The passing of cash from one person to another is not hygienic and safe amid a pandemic. The reason that compelled people to start shopping online. An increasing number of people began making digital payments, including those who were very doubtful about doing online transactions in the initial stage.
According to several studies, 61% of people doing online shopping are using cards and digital wallets and avoiding cash-on-delivery payment mode. This is a massive shift in the UAE e-commerce industry. Research conducted by ResearchAndMarkets.com in 2019 showed that cash-on-delivery is the most preferred payment method for online shoppers in many Arab countries.
The Trend is Here to Stay and Grow
The trend will continue as in the current situation, and it does not seem to turn back. Post-COVID-19, the intent to maintain social distancing and ease of online shopping trends is a clear indication that consumers will not return to their old retail shopping habits. The research by Kearney Middle East is a testimony to this prediction. It indicates that 48% of respondents from the UAE and 69% in Saudi Arabia will continue to bank on online shops for daily purchases even after the COVID-19 dust settles down.
Taking the Digital Revolution to the Next Level
The UAE’s e-commerce market is predicted to accelerate rapidly, and similar growth is expected across the MENA region. Therefore, it won’t be wrong to say that e-commerce is one of the most lucrative sectors today and in years to come.
However, something to feel good about is that the digital revolution can be seen and felt in almost all sectors. You can buy and sell trade almost everything online, whether it is products or services. The most exciting thing is, you can start an online business setup even with a minimum investment. It depends on your requirement, what business setup you want for your e-commerce business in UAE. Talk to a business setup consultant in UAE for a better understanding.
The decision is all yours, in which sector you want to start and how you want to start. However, one inevitable thing is, the e-commerce sector in UAE will continue to grow exponentially to meet the demands of the changing retail landscape.