Did you realize that Saudi Arabia stands out as a growing e-commerce hub globally? Absolutely! With a population of tech-savvy individuals who enjoy shopping online, Saudi Arabia presents a lucrative digital landscape for businesses. For those considering venturing into the Arabian market with their products or services, the time is ripe! E commerce in Saudi Arabia is flourishing, presenting opportunities for businesses across all scales. By familiarizing yourself with customs and traditions you can pave your way, towards achieving success.

The point to be taken into view is that e-commerce in Saudi Arabia is growing and has generated US$10 billion in revenue in recent years, making the Kingdom the 28th largest online market globally and bringing it on par with its regional neighbour, the UAE.

Top Statistics for E-Commerce in Saudi Arabia

Infographics by GO-Globe E-Commerce Saudi Arabia

• Saudi e-commerce generated US$10 billion in revenue in 2023, making the Kingdom the 28th largest online market globally and bringing it on par with its regional neighbour, the UAE.

• Saudi Arabia is the 29th largest market for eCommerce with a predicted revenue of US$14,159.9 million by 2024, placing it ahead of Austria.
• Revenue is expected to show a compound annual growth rate (CAGR 2024-2028) of 10.1%, resulting in a projected market volume of US$20,808.8 million by 2028.
• With an expected increase of 13.0% in 2024, the Saudi Arabian eCommerce market contributed to the worldwide growth rate of 10.4% in 2024
• In the eCommerce Market, the number of users is expected to amount to 24.7 million users by 2029.
• User penetration is expected to be 43.6% in 2024 and to hit 63% by 2029.
• The average revenue per user (ARPU) is expected to amount to US$552.90.
• 42.6% of Saudi Arabia’s population is female, while 57.4% of the population is male.
• KSA stands as a pivotal market, driving around 45% of the entire digital economy in the Middle East and North Africa (MENA) region.
• For perspective, the Kingdom is projected to surpass 20 million digital economy users by 2030.

Online Buyer Demographics

• The Kingdom of Saudi Arabia (KSA) is positioned as a global leader in digital maturity with internet penetration exceeding 95%.
• Even though Saudi Arabia is a large country, the majority (>70%) of the online market is fuelled by cities such as Riyadh, Jeddah and the Eastern region.
• Some of the popular e-commerce and digital platforms include:

1. noon
2. Amazon
3. Jahez
4. Hungerstation
5. Careem
6. eXtra
7. Souq.com
8. Jarir.com
9. Expatriates.com

• Also, omnichannel operators such as Carrefour, Cenomi, 6thStreet.com and Centrepoint to name a few, have played pivotal roles in shaping KSA’s digital economy.
• UAE, Saudi Arabia and Qatar have remained among the world’s top 10 emerging markets for logistics.
• Today, the rate of digital payments in the Kingdom is at 65%, on track to hit the Saudi Central Bank’s goal of 70% by the end of 2025.

E-commerce revenue by category

E-commerce Users by Age Group in millions

By Gender

GO-Globe’s Role in Enhancing Saudi Arabia E-commerce

Saudi Arabia E-commerce has expanded enormously in recent years. The growing demands of customers must be understood by anyone aiming to expand their e-commerce business in Saudi Arabia. Online shopping is becoming more and more popular these days. People opt for electronic payment alternatives. GO-Globe is a one-stop solution for businesses in this situation.

For years, the company has been helping a variety of enterprises. To ensure companies take full advantage of this market, GO-Globe provides a full suite of e-commerce solutions.

GO-Globe’s Contribution to the Saudi Arabian E-Commerce Sector

GO-Globe operates under the tenets of innovation, excellence, and transparency. It has been helping companies adjust to the unique requirements of the nation's online economy. Businesses hoping to expand in Saudi Arabia's cutthroat e-commerce market rely on GO-Globe's extensive experience and creative solutions.

Let's see how GO-Globe assists an e-commerce business in Saudi Arabia to mark its place in the internet marketplace.

1. Development of Custom E-Commerce Websites

Your e-commerce store must be flawless in many aspects in order to draw in potential clients. GO-Globe builds custom e-commerce stores according to the needs of the local market of Saudi Arabia. GO-Globe understands that 70% of the online market is from urban areas like Riyadh, Jeddah and the Eastern Region. Therefore it creates online platforms that align with their preferences and behaviours.

Key Features of GO-Globe’s Website Development Services:

User-friendly Designs: GO-Globe builds beautiful intuitive designs that facilitate users with easy navigation and multilingual options within the platform. With efficient mobile responsive platforms, customers can enjoy a seamless shopping experience.

Localization: GO-Globe recognises the cultural values of Saudi buyers. It creates websites that represent local traditions and values. It helps businesses create a trustworthy and engaging environment for consumers.

Optimised for Performance: The websites are not only visually appealing but also function flawlessly. Their high loading speed, and smooth functionality help reduce the bounce rates and encourage repeat purchases.

2. Search Engine Optimization for Visibility:

A website is ineffective if it does not show up in the top search results, regardless of how good it looks. GO-Globe prioritises the SEO of e-commerce platforms for all kinds of devices. It ensures the client's e-commerce business in Saudi Arabia ranks high in search results and drives organic traffic.

Use of localised keywords: GO-Globe utilises localised keywords that contain geographic modifiers like “city name”, “doctor near me” etc to help businesses rank on search engines and increase conversion rate.

Content Optimization: GO-Globe creates SEO-optimised content like website content, blog posts, and social media posts that resonate with the local target market.

Technical SEO: GO-Globe also takes care of the technical SEO of platforms. For instance, they focus on mobile optimization and fast loading speed for the websites as these factors are of great importance for ranking high on search engines.

3. Integration of Advanced Payment Solutions

In Saudi Arabia, the e-commerce ecosystem is heavily dependent on digital payment methods as 65% of transactions were made electronically in 2023. GO-Globe helps businesses to integrate safe and diverse payment gateways to cater to the growing demand for online transactions.

It offers the following

• Solutions that are compatible with local and international methods like MADA, STC Pay, and credit cards.
• Secure encryption to protect sensitive customer data.
• Seamless checkout experiences to reduce cart abandonment rates.

4. Enhanced Mobile Commerce (M-Commerce)

In Saudi Arabia, around 90% of consumers make purchases using cell phones. For its clients, GO-Globe creates mobile-first systems so they may profit from this trend.

The main features of mobile-first e-commerce websites include the following:

• Responsive design for the best possible user experience across all devices.
• Dedicated mobile apps that offer personalized shopping experiences.
• Features like push notifications to engage customers and drive repeat purchases.

5. Analytics-Driven Decision Making

Data insights are necessary to comprehend consumer behaviour and the latest trends. GO-Globe utilises analytics tools to help businesses refine their strategies by understanding the needs of their audiences and tracking the performance of their business.

Benefits of GO-Globe’s Analytics Services:

• Consumer Behaviour Insights: It helps understand the demographics and buying preferences of the target market
• Sales Performance Metrics: With this tool revenue trends of high-performing products can be identified.
• Market Trends Analysis: It helps understand the latest industry shifts and consumer demands.

6. Localization and Cultural Sensitivity

GO-Globe uses e-commerce strategies that are aligned with Saudi cultural values. This approach helps businesses build trust and create a lasting impression on local customers

Localization Efforts Include:

• Creating custom content and visuals that reflect Saudi Arabia’s traditions.
• Incorporating Arabic language support and regional dialects.
• Addressing religious sensitivities in marketing and product offerings.

7. Integration with Omnichannel Platforms

Omnichannel operators like Carrefour and Centrepoint play a vital role in the e-commerce market of Saudi Arabia. GO-Globe helps businesses integrate online and offline channels that ensure a seamless customer experience across all platforms.

GO-Globe offers

• Synchronisation of inventory across physical stores and online platforms.
• Enabling click-and-collect options for enhanced convenience.
• Utilising data from both channels to create personalised marketing campaigns.

8. Compliance with Saudi Regulations

Companies who want to succeed in their e-commerce business in Saudi Arabia must be aware of and abide by local laws. To guarantee seamless operations, GO-Globe helps companies adhere to national regulations.

Regulatory Support Includes:

• Guidance on data protection laws like the Saudi Data Privacy Law.
• Ensuring compliance with VAT requirements for online sales.
• Support for licensing and certification processes.

9. E-Commerce Trends and Future Readiness

The experts at GO-Globe understand the importance of following new trends in the market to stay competitive. This approach helps improve user engagement and conversion rates.

• Future-focused tactics include using AI and machine learning to give customers a customised purchasing experience.
• Offers virtual try using augmented reality and virtual technologies
• Implementation of social commerce by integrating e-commerce to popular social media platforms like Instagram and Snapchat.

GO-Globe is playing a central role in Saudi Arabia e-commerce as it offers specific solutions to the unique needs of the local market. With its wide range of services, GO-Globe helps businesses to attain long-term success

Conclusion

E-commerce Saudi Arabia is experiencing a surge in growth. Providing beneficial opportunities for companies to explore further opportunities in the market. With its strong internet, large population, and booming digital economy, Saudi Arabia is a top contender in the global online marketplace. If you're an enterprise or looking to expand, now is a chance. Access and benefit from this thriving market's potential. One must understand its culture, market, and consumers to thrive in Saudi Arabia's rise as a tech hub.

Frequently Asked Questions

What makes Saudi Arabia a significant market, for e-commerce businesses?

Saudi Arabia boasts one of the largest e-commerce industries globally. It is projected to generate over $13 billion soon. Its tech-savvy public and 95% internet usage make it a hub for digital enterprises.

What are the primary online shopping platforms available, within Saudi Arabia?

In Saudi Arabia's e-commerce industry, you'll find platforms like Noon and Amazon. There are also favourites like Jahezz and Hungerstation. Souk.com and omnichannel players like Carrefour and 6thStreet.com are making their mark, too.

Who makes up the group of individuals shopping online in Saudi Arabia?

In Saudi Arabia's shopping, there is a mix of nationals (42%) and non-Arab expatriates (58%). The majority of shoppers are in the 25 to 34 age bracket. Individuals from all age groups are represented in the market.

What is the size of the e-commerce sector, within Saudi Arabia?

Saudi Arabia has the world's largest online market. It will exceed USD 14 billion by 2024, with a 10% annual growth rate. The market is expected to expand from 2024 to 2028 by 10%.

What are the main product categories found within Saudi Arabia’s market?

People are interested in categories like fashion items, gadgets, food, drinks, beauty products, medications, household furnishings, and home equipment.

Are payments commonly used in Saudi Arabia?

Digital transactions have become popular nowadays as 65 per cent of payments are made electronically than with cash. The Saudi Central Bank has set a goal to raise this percentage to 70 by the year 2025.

Which cities are, at the forefront of e-commerce operations, within Saudi Arabia?

Riyadh and Jeddah, along with the Eastern Region of Saudi Arabia, are responsible for more than 70% of the online market share.

What's the percentage of people using e-commerce services among users residing in Saudi Arabia’s e-commerce industry?

By 2024 the expected user penetration is projected to reach 43 point 5 percent. It is anticipated to increase to 63 per cent by 2029, indicating an increase in the popularity of online shopping.

How does Saudi Arabia measure up against nations, in the region?

Saudi Arabia and the UAE are both at the forefront of the e-commerce market within the Middle East and North Africa region. Together, they are responsible for 45 per cent of the area’s economy.

Before venturing into the e-commerce market what key information should companies be aware of?

In today's market, businesses must understand the culture. They must also keep up with consumer preferences and trends to thrive. They must also note the rise of payment methods and cities' influence on online shopping.