UAE B2C E-Commerce and Payment Market 2020 & COVID-19’s Impact code:1492

UAE B2C E-Commerce and Payment Market 2020 & COVID-19’s Impact
OVERVIEW
TABLE OF CONTENTS
COMPANIES MENTIONED
Countries Covered: UAE
Pages: 56
Publication Date: 19/08/2020
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Questions Covered in the report:
  • How does the pandemic affect the B2C E-Commerce market in the UAE?
  • What were the top 10 mobile shopping apps in this country during the pandemic?
  • What is the share of consumers changing their shopping habits during COVID-19 in the UAE?
  • Which delivery methods were used for the top 2 E-Commerce websites in UAE during the outbreak?
  • Which top online shopping websites were most visited amid the coronavirus outbreak in the UAE?

Key Finding:

UAE’s E-Commerce market blooms during the COVID-19 outbreak

Rapid growth in online commerce during the pandemic

Since the onset of the COVID-19 pandemic, the UAE has experienced a boost in its already developing E-Commerce market. Owing to the lockdown restrictions, consumers started turning more towards online shopping, which resulted in an increased number of new online retail businesses. The E-Commerce sector received the highest number of permits issued to any retail business in the UAE. During the lockdown period, online retail sales increased by more than half as the regularity of making online purchases increased. According to a report cited in the yStats.com publication, one-third of Internet users in the UAE increased their online shopping activities in March 2020.

Clothing and food are the most ordered items amid the health crisis

After the coronavirus health crisis hit the UAE, the best-selling product categories purchased online were clothing and footwear followed by electronics, packaged food and fresh grocery. Furthermore, shoppers have started buying some products online more than before, such as home entertainment items, food takeout and delivery as well as beauty products. The pandemic kindled an overall change in the choice of products purchased online and other online verticals such as digital entertainment. During the COVID-19 health crisis, a significant share of adults started using online streaming services more than before the outbreak, according to a June 2020 survey cited in the yStats.com report.

Increased share of consumers are switching to digital payment methods due to COVID-19

Cash on delivery was the top payment method used by online shoppers in the UAE prior to the outbreak. However, due to the fear of contracting the COVID-19 virus by touching cash, consumers started opting for more hygienic and secure payment methods which resulted in an increased share of shoppers who switched to digital payment methods. Furthermore, according to a study in June 2020, more than half of digital payment users preferred using contactless cards to pay in-store. Another important study cited by yStats.com mentions that a large quota of shoppers in the UAE plan to continue the use of contactless payments even after the pandemic is over.

 

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1. Management Summary

2. Overview

  • B2C E-Commerce Market Overview and International Comparisons, July 2020
  • B2C E-Commerce Share of Total Retail Sales, in %, by Selected Countries, incl. UAE, 2019

3. Trends

  • Cross-Border E-Commerce’s Share of Total E-Commerce Sales, in USD billion, and in %, October 2019
  • Growth in Orders Placed on International Websites in January, March & April 2020, in % of The Number of Orders in October 2020
  • Share of Consumers Who Plan to Make Purchases Via a Mobile Phone App, in %, November 2019
  • Share of Consumers Who Plan to Do Their Holiday Shopping on Apps, in %, Compared to The Global Average, November 2019
  • Share of Consumers in Abu Dhabi and Dubai Who Prefer to Buy Products Using A Smartphone/Tablet, in %, Compared to Global, September 2019
  • Share of Consumers in Abu Dhabi and Dubai Who Placed an Order Using an App and Collected In-Store, in %, Compared to The Global Average, September 2019
  • Share of Consumers in Abu Dhabi and Dubai Who Accessed Loyalty/Rewards Coupons Via Smartphone, in %, September 2019
  • Top 10 Mobile Shopping Apps in the Apple App Store and Google Play Store, by Rank, July 2020

4. Sales & Shares

  • B2C E-Commerce Sales, in USD billion, 2015 & 2019e
  • B2C E-Commerce Share of Total Retail Sales, in %, 2019e
  • Annual B2C E-Commerce Sales Estimate By Pre-Lockdown, During Lockdown and By the End of 2020, in USD billion, June 2020

5. Users & Shoppers

  • Share of Consumers Changing Their Shopping Habits During COVID-19 Outbreak, in %, April 2020
  • Share of Adults Who Started Using Digital Shopping Methods During COVID-19, in %, June 2020
  • Breakdown of Attitudes Regarding The Use of Online Shopping During COVID-19 Outbreak, in % of Internet Users, March 2020
  • Preferred Shopping Channels During Lockdown Due to COVID-19 Outbreak, in % of Consumers,  April 2020

6. Products & Verticals

  • Share of Online Shoppers Purchasing Selected Product Categories Online, by Before COVID-19 and After COVID-19, in %, June 2020
  • Product Categories Purchased Online During COVID-19, in % of Online Shoppers, April 2020
  • Share of Online Shoppers Buying Fashion Products Online During Ramadan, in %, by Gender and Age, 2019
  • Share of Consumers Planning to Buy Selected Product Categories Online During Ramadan Post-COVID-19 Compared With Pre-COVID-19 Outbreak, in %, April 2020
  • Share of Consumers Who Buy Most of Their Groceries Online, in %, September 2019
  • Share of Internet Users Who Have Food or Groceries Delivered to Their Homes More Frequently Due to COVID-19 Outbreak, in %, March 2020
  • Online Food Retailers’ Platforms Used Post-COVID-19 Compared to Pre-COVID-19 Outbreak, in % of Online Grocery Shoppers, April 2020
  • Selected Digital Activities Conducted More Often Or Tried For the First Time Since the COVID-19 Outbreak, in % of Adults, June 2020

7. Payment

  • Payment Methods Accepted by the Top 2 E-Commerce Websites, July 2020
  • Share of Consumers Who Made Purchases In-Store Using Mobile Payment, in %, September 2019
  • Share of Consumer Paying By Cash or Using Digital Payment Methods When Shopping at Stores During COVID-19 Outbreak, in %,  June 2020
  • Breakdown of Consumer Using Digital Payments More Than Paying in Cash When Shopping in Store During COVID-19 Outbreak, in %, June 2020
  • Attitudes to Contactless Payments During COVID-19 Outbreak, in %, April 2020

8. Delivery

  • Delivery Methods, Time and Charges for the Top 2 E-Commerce Websites, July 2020

9. Players

  • B2C E-Commerce Players Overview, July 2020
  • Top Online Shopping Websites, incl. Total Number of Visits, in millions, UAE’s Share of Total Visits, in %, Average Visit Duration, Pages Per Visit and Bounce Rate, June 2020
  • Number of Licenses Issued to Different Sectors, incl. E-Commerce, May 2020
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  • Alibaba Group Holding Ltd
  • Alphabet Inc.
  • Amazon.com Inc
  • Apple Inc
  • Gen Z Holdings Ltd
  • Jollychic EC Ltd
  • MasterCard Inc.
  • Namshi General Trading LLC
  • Noon Ltd
  • Souq.com
  • Tajj Holdings Ltd
  • Visa Inc.
  • Watchbox Co
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