Mar 22, 2023
In the past few years, e-commerce in Saudi Arabia has witnessed a remarkable rise largely as a result of an appropriate economic environment that provided it with the possibilities of development and expansion.
According to (ecommerceDB), Saudi Arabia is the 30th largest market for e-commerce with revenue of US$9.9 billion in 2021, placing it ahead of Denmark and behind Belgium.
Moreover, it is among the top 10 growing countries in the field of e-commerce in the world, with a growth rate of more than 32%. (global payments inc)
All these questions and more will be answered in this article.
Let’s start with a quick review of the reasons that catalyzed the growth of e-commerce in this pivotal Gulf and Middle Eastern country.
To clarify this, we will stand on the most important milestones that contributed to the growth of the e-commerce industry in Saudi Arabia.
Growth of E-commerce in Saudi Arabia Key Milestones 2001- The start of e-commerce in KSA 2014 – The highest e-commerce growth rate 2017 – The first e-commerce exhibition 2018 – Establishing the E-Commerce Council 2019 – Issuing the Electronic Commerce Law 2020 – Launching “Maroof” e-platform 2022 – Government initiative for male and female entrepreneurs[/caption]
Since e-commerce activity in Saudi Arabia first began in 2001, the industry has undergone a number of notable developments as a result of providing the necessary legal and regulatory frameworks for its activation.
In 2014, Saudi Arabia topped the MENA region with the highest e-commerce growth rate, estimated at 41 % compared to 2012 and 2013.
By launching “Vision 2030” in 2016, e-commerce has gained traction as one of the core pillars that support this vision and motivate investors, businessmen, and owners of small and medium enterprises.
During the years 2017 and 2018, two e-commerce exhibitions were organized in Saudi Arabia, with 3 core aims:
Important steps were taken in 2018 to organize the e-commerce sector and maximize the returns generated from it, by establishing the “E-Commerce Council”, with the aim of unifying the efforts of all government agencies in order to create a stimulating environment for e-commerce in Saudi Arabia.
Later, in 2019, the “Electronic Commerce Law” was issued, with 2 key aims:
Click here so you can download the Ecommerce Low PDF
In 2020, the “Saudi Ministry of Commerce” has launched the “Maroof” e-platform as a free service that enables the seller to easily reach a larger group of customers by marketing his store, using all means of communication in a reliable way. Besides giving online shoppers a visualization of the quality of services provided to them by the e-stores.
In 2022, a government initiative was launched that allows male and female entrepreneurs and the owners of small and medium enterprises to obtain a free e-store with each commercial registration for a period of 6 months from the date of the application, to allow investors in this sector to expand and spread locally and globally.
Moreover, the availability of suitable technological infrastructure, represented by the penetration of the Internet and the significant increase in the use of smartphones, has improved the chances of expanding the e-commerce market in Saudi Arabia.
These steps and conditions, in addition to encouraging national investors to invest in e-commerce, have also stimulated international suppliers of the e-commerce market to invest in Saudi Arabia, which contributed to promoting the growth of this market.
After we have reviewed the most prominent reasons for the growth of e-commerce in Saudi Arabia, let’s answer the most common question 👇
When trying to accomplish something, nothing is better than having a checklist.
So, here is a checklist that draws a clear path for you toward obtaining your own business in the field of e-commerce in Saudi Arabia with minimal risk.
The first step is to do a comprehensive feasibility study on your business, including the following:
It’s obvious that in order, for your business, to be legitimate and compatible with the prevailing regulations, you should familiarize yourself with the law regulating electronic commerce in Saudi Arabia.
Saudi legal procedures or conditions for establishing businesses, particularly in the field of e-commerce, are smooth and uncomplicated.
Saudi Arabia’s ministry of commerce is keen to establish conditions and regulations that guarantee the rights of both consumers and merchants in this area. In addition to facilitating binding procedures, it provides many services electronically, which helps merchants save time, effort, and money.
The regulatory framework for the activities of the e-commerce industry is represented in the E-commerce Law (Royal Decree No. M/126 July 10, 2019) which controls all electronic commerce transactions in Saudi Arabia and defines the obligations and rights of both merchants and customers.
Here are the key points of the law regulating electronic commerce activities in Saudi Arabia:
In the aftermath of conducting a feasibility study for your business, designing its marketing plan, and reviewing the laws regulating it, the first practical step towards launching your e-commerce is to obtain a digital store license (commercial registry).
This step is intuitive and necessary in order to protect your legal business rights and the rights of your customers. In addition, it enables access to acts and facts regarding the legal status of your business, partnerships, and other entities or sole traders.
Do not worry about this step; it is quick and simple in Saudi Arabia, as shown in the next section. 👇
You can do this through some smooth steps or procedures approved by the Saudi government to facilitate engaging in electronic commerce.
These steps can be done electronically according to the following sequence:
As soon as you have completed these steps, you will be able to issue your commercial registration with your membership number in the Chamber of Commerce. You can finish it while at home in just a few minutes.
After obtaining the commercial register, the next necessary step is to register with Maroof (known) platform. In this way, you can register your store with the Ministry of Commerce.
The purpose of this step is to increase trust between seller and buyer and to increase the chance of your store’s success.
You can do this through the following steps
Needless to say that starting e-commerce in Saudi Arabia required having an online store. It’s the online store platform is a pivotal factor in the success of your project.
Successful e-commerce web design can help give customers a better experience, contribute to increasing their levels of satisfaction, and potentially lead to more sales and revenues.
In order for the design of your e-commerce platform to be optimal, the following considerations should be taken into account:
When doing this step, all you have to do is entrust the matter to a reputable company that specializes in this field.
We at Zid, as a leading provider of innovative e-commerce solutions, offer you the ability to:
After completing the procedural matters and obtaining approval to create your store and obtaining the appropriate design for it, comes the stage of preparing and displaying its products.
This is done by accomplishing the following:
We at Zid have excellent experience to carry out this step in a professional and exceptional way.
We have a professional team to help you prepare your online store from the first time you register in Zid and to support you until you upload all your products and set up your store to receive orders.
Payment operations are one of the most critical elements of e-commerce, as all online business operations depend on them, and for this reason, it must be done effectively based on what suits the requirements and preferences of the target customers.
This is available conveniently and very easily in Saudi Arabia, as the government has facilitated financial services by confirming a number of electronic methods, including Sadad, Saree, and Mada.
Additionally, there are other electronic payment platforms such as Moyasar, Payfort, Paytaps, and Hyperpay.
We at Zid provide an innovative payment solution that enables retailers to manage orders and online payments seamlessly and effectively in one place through ZidPay, plus our integrations with other national and international payment providers.
When you decide to use a payment gateway for your business, you should use the solution that helps you save time, effort, and costs as much as possible. And this is what you will find with ZidPay, which offers you the following:
The service of shipping and delivering orders to consumers is a vital element to the success of your online store, as the quality and effectiveness of this service give positive impressions to customers and contribute to increasing their loyalty to your brand.
That is why you should assign this service to the appropriate companies that can carry out the shipping and delivery operations quickly and efficiently.
Zid provides you with the perfect solution to implement this step efficiently through ZidShip.
ZidShip is a logistic service that allows retailers to send orders with several shipping companies covering a large number of cities in the Kingdom at competitive prices.
ZidShip is suitable for all online stores and retailers, whether the number of their shipments is large or small.
Imagine shipping all your orders with your preferred couriers, processing shopping operations with couple of clicks, and managing everything in one place.
Nothing is better than this.
Now, it’s time to promote your e-commerce business.
For a successful and profitable start to your business, you must prepare an effective marketing plan for your products or services that you intend to provide.
The marketing plan visualizes the advertising strategy the business will implement to generate leads and sell its products or services.
It identifies the target market, the value proposition of the brand or the product, the marketing campaigns that will be implemented, and the metrics that will be used to measure the effectiveness of marketing campaigns.
The question now is, how can you promote your e-commerce store the easiest way?
Of course, you don’t need to spend your efforts running marketing campaigns manually and wasting your resources.
That’s why Zid offers you the opportunity to do marketing smartly by offering you:
And much more…
By completing these steps, you will have established your e-commerce business in Saudi Arabia and become a member of one of the most developed and profitable economic sectors in the country, given the vast possibilities of this sector, which we will mention below.
The field of e-commerce in Saudi Arabia has abundant potential, as the digital economy has grown significantly over the past few years, and is projected to continue its significant growth over the next stage.
The size of the e-commerce market in Saudi Arabia is expected to reach US$ 20.01 Billion in 2027, expanding at a CAGR of 20.87% from 2022 to 2027. (GlobeNewswire)
This market is relatively diversified as it includes different areas, which contributes to increasing its growth opportunities.
In terms of the composition of the e-commerce market categories in Saudi Arabia, it is, according to (ecommerceDB), as follows:
Now let’s answer some of the most frequent questions that you might be interested to learn their answers. 👇
Many companies are active in the e-commerce market in Saudi Arabia, the most prominent of which are AliExpress, MercadoLibre, Amazon, Jazp, eBay, and Walmart.
And the top online stores in the Saudi Arabian e-commerce market are Haraj, Namshi, Jarir, extra, and noon.
According to (Similarweb), haraj.com.sa ranked number 1 and is the most visited e-commerce and shopping store in Saudi Arabia in December 2022.
Yes, there is.
As a result of the large size of the Saudi e-commerce market, and the multiplicity of companies active in it, many job opportunities are available in this field with very high salaries.
E-commerce in Saudi Arabia market represents a major force in the global economy, as it is growing at a faster rate than traditional trade, driven by the shift of more companies and consumers towards online marketing and purchasing, taking advantage of smartphone technologies and the continuous innovation and improvement in e-commerce platforms.
Among the promising markets is E-commerce in Saudi Arabia, which has witnessed a remarkable rise in the past few years, largely as a result of an appropriate economic environment that provided it with the possibilities of development and expansion.
The future of this industry looks brighter with 78% of consumers in Saudi Arabia saying they will maintain or increase their current level of e-commerce spending into 2023.
This significant expansion carries with it more opportunities for active businesses in this field.
To enhance your ability to take advantage of these promising opportunities, get in touch with us at Zid to provide you with the innovative digital solutions necessary to achieve your goal.
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We offer comprehensive services to help your business grow, such as connecting you with shipping companies, activating payment gateways, and integrating with apps to automate tasks, all from one dashboard. Zid is a united community where merchants from various e-commerce sectors can exchange experiences and advice.
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