Ecommerce, once a novel concept, has now become the lifeblood not only for MENA economics but for all over the globe, transcending geographical boundaries and reshaping traditional commerce models.
In addition to general benefits, new ecommerce development technologies like MACH-based ecommerce solutions and composable commerce offer significant advantages for enterprise-level, wholesale, B2B commerce, and large retail businesses.
- Enterprise-level businesses: Ecommerce can help enterprise-level businesses to improve their efficiency and profitability. For example, businesses can use ecommerce to automate their order processing and fulfillment systems.
- Wholesale businesses: Ecommerce can help wholesale businesses to reach a wider audience and increase sales. For example, wholesale businesses can use ecommerce to sell their products to retailers all over the world.
- B2B businesses: Ecommerce can help B2B businesses to improve their relationships with their customers and suppliers. For example, B2B businesses can use ecommerce to create self-service portals for their customers and suppliers.
- Large retail businesses: Ecommerce can help large retail businesses to expand their reach and increase sales. For example, large retail businesses can use ecommerce to sell their products to customers in rural areas and in other countries.
- Social Commerce: Social commerce emerges as an essential instrument for businesses seeking to navigate and thrive in this ever-changing landscape
This comprehensive exploration aims to uncover the dynamic developments, challenges, and unprecedented potentials that characterize the Ecommerce Landscape in the MENA region.
MENA: E-commerce Stats & Insights
Ecommerce in the Middle East and North Africa (MENA) region is rapidly growing, especially during The COVID-19 pandemic, which accelerated the adoption of b2b e-commerce, enterprise-level, wholesale, and large retail businesses
In 2022, the MENA e-commerce market was valued at $37 billion, is expected to reach $57 billion by 2026, at a compound annual growth rate (CAGR) of 11%, and contribute over 3% to the region’s GDP based on report was published by KPMG in 2022
Several countries have emerged as Top 5 ecommerce players In the MENA region. Among these:
- UAE
- KSA
- Egypt
- Qatar
- Kuwait
Those nations represent over 80% of the total MENA e-commerce market and have experienced significant growth in online retail activities, with a burgeoning number of businesses and consumers participating in the digital marketplace.
The United Arab Emirates, with its advanced infrastructure and tech-savvy population, leads the pack, followed closely by Saudi Arabia, a country with a rapidly expanding digital economy. Egypt, with its large population and increasing internet accessibility, has also become a pivotal hub for online commerce. Additionally, Qatar and Kuwait have shown remarkable progress, fostering a culture of digital entrepreneurship and consumer trust.
When examining the demand levels and online search behavior of users, Google search data reveals millions of monthly queries closely related to ecommerce benchmarks.
Here is a list of the top 50 most searched e-commerce terms in MENA, along with their average monthly search volume
The insights and facts about the future of e-commerce in the MENA region are optimistic, also the insights predicts that the Ecommerce MENA markets will continue to grow rapidly in the coming years which will play an increasingly significant role in the MENA region’s economy.
Factors that Driving E-commerce Growth
The growth of e-commerce in the MENA region is being driven by a number of factors, including the increasing adoption of smartphones and the internet, the growing middle class, and the convenience of online shopping.
Retailers, FMCG companies, and pharmacies in the MENA region are increasingly investing in e-commerce in order to reach a wider customer base and boost their sales.
Today there are several factors that have contributed to the growth of e-commerce in the MENA (Middle East and North Africa) countries over the last five years. Here are top 5 factors driven the significant growth of e-commerce:
1. Higher internet accessibility and smartphone usage
- Large population of young people who are tech-savvy and comfortable with online shopping
- The development and adoption of secure online payment systems have boosted consumer confidence
- A growing entrepreneurial spirit
- Government Initiatives to support the digital economy
The E-commerce Next-Generation Tech
Competition between companies drives decision-makers to seek solutions that help achieve business goals. The E-commerce platforms vary in programming languages, tools, and features. This section clarifies the latest e-commerce development methods and programming techniques, which offer numerous advantages for businesses and developers to seamlessly match business requirements.
- Introduction to E-commerce Development Solutions
E-commerce development solutions enable businesses to create and manage their online stores. These solutions can range from simple website builders to complex enterprise platforms. The choice of e-commerce development solution depends on the specific needs of the business. Monolithic Architecture Disadvantages
Monolithic architecture is a traditional approach to software development in which all of the application’s components are tightly coupled. This means that changes to one component can have unintended consequences for other components. Monolithic architectures can be difficult to scale and maintain, and they can be slow to adapt to changing market conditions.Disadvantages of Monolithic Architecture for Business Growth
Monolithic architectures can be a barrier to business growth for a number of reasons. First, they can make it difficult to add new features and functionality to the e-commerce platform. Second, they can make it difficult to scale the platform to meet increasing demand. Third, they can make it difficult to integrate the platform with other systems, such as CRM and ERP systems.MACH Architecture Foundation and Advantages
MACH architecture is a modern approach to software development that is based on microservices, API-first, cloud-native, and headless principles. Microservices are small, independent services that can be developed, deployed, and scaled independently. API-first means that the architecture is designed around APIs, which makes it easy to integrate the platform with other systems. Cloud-native means that the architecture is designed to be deployed in the cloud, which makes it scalable and cost-effective. Headless means that the front-end and back-end of the platform are decoupled, which gives businesses more flexibility in designing their customer experience.- Composable Commerce
A composable approach to e-commerce development involves using best-of-breed solutions for each component of the platform. Composable Commerce approach offers a number of benefits let the business reach un-capped level of capabilities of expansions, growing, and code-freedom.
MEAN eCommerce Success Stories
There are numerous enterprise commerce success stories from various businesses that illustrate how their daily revenue and overall growth were impacted after they made the decision to enhance their online presence and start selling products online.
- FMCG
Unilever: Unilever is a global consumer goods company that sells a wide range of products, including food, beverages, and personal care items. In 2018, Unilever launched its e-commerce platform in the MENA region. The platform offers a wide selection of Unilever’s products, as well as convenient delivery options and exclusive discounts. In 2020, Unilever’s e-commerce sales in the MENA region grew by more than 70% year-over-year.
P&G: Procter & Gamble (P&G) is another global consumer goods company that has achieved success with e-commerce in the MENA region. In 2019, P&G launched its e-commerce platform in the region, offering a wide selection of P&G’s products, as well as convenient delivery options and exclusive discounts. In 2020, P&G’s e-commerce sales in the MENA region grew by more than 50% year-over-year.
- Retailers
Jarir Bookstore: Jarir Bookstore is Saudi Arabia’s largest retailer, offering an extensive range of products that includes office and school supplies, books, children’s toys, and electronics. In 2017, Jarir launched its e-commerce platform, which quickly became one of the most popular online shopping destinations in the country. In 2020, Jarir’s e-commerce sales accounted for 25% of its total sales, up from just 5% in 2017.
Namshi: Namshi is a leading online fashion retailer in the Middle East and North Africa (MENA) region. The company was founded in 2011 and quickly gained popularity thanks to its wide selection of products, competitive prices, and convenient delivery options. In 2019, Namshi was acquired by Emaar Malls, one of the largest shopping mall developers in the world. Since then, Namshi has continued to grow rapidly, with its e-commerce sales increasing by more than 50% year-over-year in 2020.
- Pharmacies
Al-Arabia Pharmacy: Al-Arabia Pharmacy is a leading pharmacy chain in Saudi Arabia. In 2018, Al-Arabia launched its e-commerce platform, which quickly became one of the most popular online pharmacies in the country. In 2020, Al-Arabia’s e-commerce sales accounted for 20% of its total sales, up from just 5% in 2018.
Lifepharma: Lifepharma is a leading online pharmacy in the UAE. The company was founded in 2012 and quickly gained popularity thanks to its wide selection of products, competitive prices, and convenient delivery options. In 2019, Lifepharma was acquired by Amazon, one of the world’s largest e-commerce companies. Since then, Lifepharma has continued to grow rapidly, with its e-commerce sales increasing by more than 50% year-over-year in 2020.
Conclusion
Every day, the quest to optimize the user’s online shopping experiences is relentless. Tech-savvy firms and software communities invest significant efforts in creating smart and innovative solutions tailored to address business needs across various sectors. These endeavors aim to instill confidence in the decision-makers, encouraging them to adopt cutting-edge technologies such as composable commerce and MACH commerce, essential for sustaining revenue growth.
