KSA E-commerce is expected to generate $20 Bn by 2025, mainly driven by the demands of growing internet penetration, demanding easier access to goods and services

The advent of players offering last-mile delivery options has allowed retailers to improve e-com logistics to support growth and scale. Furthermore, KSA has an internet penetration rate of 98% in 2021, with massive number of online shoppers, out which the young population in KSA is spending on an average 7 hrs 45 minutes every day using Internet, resulting in higher number of E-commerce orders in 2021. On the other hand, government initiatives intended to promote entrepreneurship and a cashless economy has further boosted the e-commerce development in KSA, which resulted to higher growth in e-commerce orders in the market.

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Increased Geographical Reach, Wider range of Options and Product Availability, Best Prices, Easy Returns are some of the Gaps in Offline Retail which are filled by Online Retail in KSA

The offline retailer's customer reach is expanded exponentially through online presence. E-commerce platforms who have established delivery networks, can support retailers in delivering goods beyond their own personal reach.

From clothing to food items and car parts to scientific equipment, customers have the power to choose from across a wide range of options. There is no need to visit multiple stores each time.

The competition online is stiff, and online retailers are looking for ways to offer the best deals to beat the competition.

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The ability to compare several sellers then decide on the best makes it easy to get the best deals.

Online stores offer flexible payment methods including cards, digital wallets and some even allow you to pay later. Moreover, there is an easy return policy offered by the e-commerce platforms.

E-Commerce Logistics Market expected to grow at CAGR of 14.7% by 2026F basis revenue largely due to growth in online shopping & entry of new players

The growth of e-commerce logistics companies will highly depend on their last mile delivery model. Mobile Depots are expected to make urban deliveries faster as where in mobile depots will carry parcels of the day from the fulfilment centres to the city centre for last mile delivery. Upgradation in Technology such as GPS Monitored Robots, Drones, Inbuilt RFID, GPS, IoT, telematics will be used for tracking Inventory. KSA’s populace includes ~70% people aged between the age group of 14-64 years, who will drive the future of the e-commerce market. These digital natives are constantly connected and look out for on-request, instant arrangements.

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