To say that there has been an e-commerce revolution in the UAE is a slight understatement. However, before we delve deeper into the broad topic of the e-commerce revolution spreading across UAE, let us recognize the drawbacks of e-commerce in general that was prevalent in the minds of people a few short years ago. This understanding is essential if we ever want to broach the subject of the impact that online commerce has in UAE and the rise of digital markets as well.

Inadequacy of a Personal Touch in E-commerce Shopping

Human relationships forge stronger bonds between the customer and the brand. This is because any person venturing into a physical store or marketplace can genuinely encounter the quality of service offered by the brand.

Make no mistake; this is essential. It is a manner of branding, if we may say so ourselves. As brands can hire people to showcase the type of persona that they value, customers can truly attract a lasting impact about the brand.

E-commerce shopping is devoid of this personal experience.

Security

We could probably place this reason as the pivotal reason for customers to waver when it comes to e-commerce portals. One has to utilize their credit cards (or debit cards for those looking to stay within their budget limits), to make purchases on an online portal. Not everyone is enthusiastic about inputting their card number and security code into a rectangular space.

E-commerce Even Lacks Personal Experience

It is understandable, and also justifiable, if someone wishes to actually see and experience the item that they intend to purchase. It gives the buyer the confidence that she or he has made the right decision and simultaneously check for defects, if there exists any.

So with all the aforementioned drawbacks (and quite a bit more that we haven’t mentioned), one might deduce that e-commerce is an industry that is on the decline; that its very foundations have crumbled to dust, leaving behind mere memories of its existence.

In actuality, the scenario is quite the opposite.

E-commerce Boom

According to Dubai Chamber’s website, e-commerce in the UAE is expected to be valued at a staggering $10 billion by 2018! It is currently valued at $2.5 billion. That is a prodigious 120% increase in value within just a year!

Dubai is slowly poised to transform itself into a smart city and this vision clinches public faith in online businesses. As technology and innovation grows in the UAE, people become acclimatized to newer trends and conveniences. Technology itself induces the idea into the minds of the masses that anything related to technology, digital sphere and

online innovation is a good thing. This brings us back to e-commerce and here we shall be answering the disadvantages we had highlighted earlier with a set of benefits that this platform offers.

What Makes it Attractive

Reach

Nearly 91% of the population of UAE accesses the internet. But 91% of the people residing in this country cannot always, and probably might never, access a physical store. Even if a store is located located in Dubai Mall, what are the chances that it will, with certainty, attract potential customers from, say, Sharjah or maybe Ras Al Khaimah?

Now let’s look at this scenario. With more than 8.5 million people accessing the web, you will have more chances getting your products across to them. Why else would Amazon choose to purchase Souq.com? It knows the significant reach Souq.com has among the masses of UAE and it wants to grab that opportunity.

Reduce Prices

It isn’t a complicated science. The expenses involved in setting up an e-commerce store are not really high. Overheads are reduced and this allows the e-commerce platform to sell its products at a reduced price. This attracts scores of people onto the portal. E-commerce websites in UAE have realized this potential. Even real estate giant Emaar is planning to open a billion dollar e-commerce platform named Noon.com. With newer websites launching themselves like Marvel Studios expanding its comic universe, the competition is getting fierce!

Convenience

One of the prime features of e-commerce platforms can be further partitioned into the following benefits:

1. Buyers can take their time making their purchase. They can perform adequate research and compare prices and features. They can even discuss their purchase intention with their friends, family, neighbours, pen-pals from Uzbekistan or whoever else they would like to gain sound buying wisdom from. The most essential factor is that they can do so from the comfort of their homes. They don’t have to repeatedly visit the store to make their purchase. Just click and voila! Purchase made.
2. Consumers can access an e-commerce platform at any time of the day. This is why online markets can easily take customers away from physical stores. Buyers don’t have to wait for the store to open the following day or even travel to a physical destination. They can simply make up their minds about a product any time they choose to and within just a few keyboard strokes and mouse clicks, make their purchase.

So, is there an e-commerce revolution occurring in the UAE? There definitely is. Should a business adopt an online platform? Now that depends on the range of offerings, goals and other strategic factors of the business.