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Online Shopping in UAE Booming Due to Cheaper Prices, More Variety and Better Service

By Marshall Aido Subscribe to RSS | May 23rd 2012 | Views:
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In a report released in November 2011, Visa says that e-commerce spending in the UAE is estimated to have grown to nearly $2 billion (Dh7.34 billion) in 2010, or roughly between 55-60 per cent of the total e-commerce sales in the GCC.

In Saudi Arabia, [industry figures estimate that] retail spending will grow from 2.9 percent in 2010 to 8 percent by 2016.

Driving the online shopping boom are website AIDO.com – an online entertainment and lifestyle megastore, MumzWorld.com – focused on toys and supplies for babies and mothers. Websites are focusing not only on the unique opportunities within their category but also a better customer experience overall – from selection to delivery.

“Our new website design that went live in January 2012 has made it so much easier for potential customers to discover products they’d like to purchase. That combined with our Cash on Delivery service offered in UAE has tripled our sales in a matter of a couple of months”, says Pavan Amarnani, CEO of AIDO.com

“The other advantages AIDO.com offers over traditional retail is cheaper prices in most cases and we work with courier services to offer delivery of the product to the customer’s doorstep within a matter of a day in UAE and up to 3 days all over GCC. Product range expansion continues to be our focus. You can expect us to move into a broader Lifestyle segment from the Entertainment products we are currently selling on AIDO. We also feel that digital products will be the next driving force in the rise of online shopping in UAE and overall in the Middle East. In April 2012 we have launched a digital games download service on AIDO.com to position ourselves in this category.”

Other research findings reveal that more UAE consumers now feel confident about web shopping.

"We have noticed that customers are becoming increasingly more comfortable with using credit card online for making purchases. The reason for this shift can essentially be attributed to customer education, infrastructure development, merchant expansion, better price points and more convenience," says Faraaz Ali, cards division head for the Middle East and North Africa at Citibank.

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