The value of the region’s e-commerce sector surged 52% to reach USD 22 bn by the end of 2020 — 80% of which came from Egypt, Saudi Arabia, and the UAE, Wamda, and MIT’s Legatum Center for Development and Entrepreneurship found.
41.36 million people purchasing consumer goods via the internet in Egypt with an average spend of $79/year, this makes a $3.27 billion consumer goods market with 63.5% annual growth.
Online shopping trends are on the peak, increased by 940% after the pandemic as 80% of young Arab’s shop online frequently, after the pandemic. 72% of Egyptian consumers are shopping more online since the pandemic. 54% of consumers spending more money on virtual experience.
E-Commerce Egypt Statistics and Trends:
Egypt consumer goods e-commerce:
41.36 million people purchasing consumer goods via the internet.
$3.27 billion consumer goods ecommerce market
+63.5% annual growth in the total value of the consumer goods ecommerce market
$79 average annual spend per user
Online Shopping Trend
80% of young Arabs shop online frequently, after a pandemic.
72% of Egypt consumers are shopping more online since the pandemic
54% of consumers spending more money on virtual experience
Increase Online Shopping By 940% after a pandemic
| Ecommerce Trend | |
| Searched online for a product or service to buy (any device) | 78.90% |
| Visited an online retail site or store (any device) | 77.80% |
| Used a shopping app on a mobile phone or on a tablet | 49.50% |
| Purchased a product online (any device) | 56.60% |
| Purchased a product online via a mobile phone | 40.10% |
| Spend By Category | |
| Travel, Mobility, & Accommodation | $B 2.61 |
| Fashion & Beauty | $M 762.9 |
| Electronics & Physical Media | $M 885.1 |
| Food & Personal Care | $M 616.3 |
| Furniture & Appliances | $M 417.2 |
| Toys, Diy & Hobbies | $M 588.7 |
| Digital Music | $M 20.12 |
| Video Games | $M 556.9 |
| Growth By Category | |
| Food & Personal Care | +94.8% |
| Toys, Diy & Hobbies | +65.1% |
| Fashion & Beauty | +62.8% |
| Furniture & Appliances | +62.1% |
| Travel, Mobility, & Accommodation | -42.50% |
| E-Commerce Transactions | |
| Cash | 55 Percent Of The Online Purchases Being Payed Through Cash |
| Cards | 27 Percent Of Online Retail Payments Were Done With Cards |
| E-Wallets | Eight Percent Of Purchases Done Online Using E-Wallets |
| Banking Intermediaries | Nine Percent Were Paid Through Banking |
| Other Payment Methods | One Percent |
Egypt E-commerce Market Size
The development of the e-commerce market in Egypt has skyrocketed due to the escalating internet ingress, the growth of infrastructure in Egypt, and most importantly, the increasing numbers of online customers.
Egypt has a decided advantage in the e-commerce industry due to their residing large numbers of internet users who are the power source behind the rapidly expanding e-commerce market making it one of the leading markets in the MENA region.
The e-commerce market in Egypt sets itself apart through varied transactions conducted online, from electronics and home appliances to entertainment and airline tickets. Due to the advent of COVID-19, the speed of growth of e-commerce website development in Egypt has accelerated and forced the Egyptian government’s hand into carrying out initiatives to strengthen the telecommunication and IT industries, in turn making the e-commerce industry stronger.
Although there are some challenges such as people’s reliance on (CoD) Cash on Delivery because of the small number of credit/debit card holders, there can be seen a potential shift towards cashless transactions because of the rise in credit card insurance.
The development of e-commerce websites in Egypt can be seen through the appearance of different startups as well as the growth of local markets. Egypt’s Vision 2030 is an initiative taken to boost the e-commerce sector’s contribution to the economy by implementing various projects in e-commerce, e-government, and even digital manufacturing
Big giants such as Amazon, Btech, etc in the e-commerce market are actively participating in partnerships with local Egyptian businesses and product innovation so that they can increase their market share.
Further investments in logistics and the operational infrastructure of e-commerce in Egypt as well as collaborations with fintech platforms are accelerating growth. Most importantly, there is a promising environment for e-commerce development in Egypt, especially with the Egyptian government supporting creativity and innovation, along with strategic partnerships.
E-commerce Development in Egypt
Having the 49th largest market of e-commerce, Egypt has a forecasted revenue of $4,111.6 million by the end of 2024, surpassing South Africa. It is expected that the revenue will show a collective annual growth rate of 13.3% leading to a market volume of $6,764.5 million in the next 4 years.
Having a rate of 17.5% growth in 2024 alone, the e-commerce market in Egypt has played a part in the increase of the global growth rate of about 10.1% this year. Similar to Egypt, e-commerce sales are expected to increase more and more over the next years
Within the Egypt e-commerce market, seven markets are appraised by the ECBD. With Hobby and Leisure in the lead, accounting for 25.4% of the entire revenue generated by the Egypt e-commerce market. Following closely behind is Electronics with 21.6%, Fashion at 17.3%, Furniture & Homeware with 11.8%, Care Products with 9.1%, DIY with 8.4%, and Grocery with the remaining 6.4%.
E-Commerce Delivery Logistics
One of the biggest challenges faced by the e-commerce industry in Egypt is the delivery of online orders. The main reason for this challenge is Egypt’s inferior infrastructure and the absence of reliable delivery services. The consequence of this is that many businesses would rather partner up with logistics companies such as Aramex, which are already well-established.
With long and extensive portfolios with reliable experiences in deliveries across Egypt as well as the added offer of customer tracking information so that deliveries can be tracked from start to finish, these logistics companies have become popular with the surge in e-commerce in Egypt.
Another option for e-commerce delivery logistics is to use an option called “Click & Collect”, in which the customers themselves pick up their orders from a pre-specified location such as a petrol station, convenience store, or post office. This option became rapidly popular for smaller online purchases such as groceries or personal care items.
Some businesses, however, instead of partnering with a delivery service or logistics company choose to deliver orders directly through their vehicles and drivers, which can be costly as well as logistically challenging. But, this offers a level of comfort and ease of service for the customers.
Conclusion:
The e-commerce market in Egypt is expanding at a rapid pace and does not show any signs of slowing down in the near future. Businesses are looking towards e-commerce website development in Egypt, selling their products and/or services online.
E-commerce can help Egyptian businesses in their expansion as well as helping to minimize costs for rent and utilities as an online presence is enough. The development of e-commerce in Egypt is a blessing for the economy which is going up because of e-commerce contributions.
Related Tag : e commerce egypt
