Is it easy to open an Amazon Middle East site?
Amazon founder Jeff Bezos toured the Dubai Mall beneath the world's tallest building, Burj Khalifa, with Middle Eastern real estate tycoon Mohamed Alabbar. Just a few months later, Amazon announced the acquisition of Souq.com for $580 million.
Souq.com has become the most visited e-commerce website in the Middle East: with 1.5 million visitors per day and more than 70,000 merchants on the platform. The largest vertical categories include electronics, health, beauty, furniture and baby products, and brands include Dell, Pampers, Aldo, Boss and Nestle.
Amazon Middle East Market Situation
Advantages:
1. The Middle East has about 24 countries, more than 15 million square kilometers, and a population of 360 million, with a huge demographic dividend;
2. The total value of e-commerce in the Middle East is expected to reach US$18 billion in 2018, and the market size is huge;
3. The mobile phone coverage rate in the Middle East is as high as 96%, and the Internet coverage rate is 88%, and the network infrastructure is relatively good;
4. In the past two years, the overall growth rate of e-commerce in the Middle East has exceeded 20%. In the next few years, e-commerce will maintain an annual growth rate of about 20%, and the development prospects of e-commerce are very good;
5. There are a large number of wealthy people in the Middle East. The per capita GDP of the UAE and Saudi Arabia, two major markets, exceeds US$40,000 and US$20,000 respectively, with high per capita disposable income and strong consumption capacity.
Disadvantages:
1. The Middle East is dominated by Islam, Christianity, and Judaism, with complex customs and culture and many taboos;
2. Logistics in the Middle East are relatively backward, and many areas do not have postal codes and house numbers, making delivery difficult;
3. Consumers in the Middle East prefer to pay cash on delivery, which can cause many problems for sellers in terms of payment and collection.
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