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The Effects of Coronavirus on Ecommerce in KSA

Hasan Daouk

The ecommerce industry has been rising before the coronavirus outbreak, however this incident acted as a catalyst and bu

The Effects of Coronavirus on Ecommerce in KSA

The ecommerce revolution has become a worldwide phenomenon. In KSA, the pandemic has affected several sectors, specifically food retailers, entertainment and health. Many retailers have shifted to ecommerce and this resulted in a 200% increase in sales, demand has increased by 50% and online sale promotions increased by 400%.  

 

The kingdom has been encouraging its citizens to shop online instead of offline using electronic applications to shop from stores, restaurants and cafes, and prevent transmission of the virus. There are also several Saudi companies working in the area of order delivery where they provide various commodities and services at home through their electronic applications. 

 

We created this recap of a study done by DRC & Tejartech in May 2020 to help you discover the impact of the COVID-19 pandemic on ecommerce in KSA with the focus on the consequences on the business sector and the consumer purchase behavior.

 

Here is an overview of the study: 

  • The main sectors which were mainly using ecommerce during the pandemic are food retailers, entertainment and health. 
  • Retailers partnered with delivery applications for logistics resulting in creation of delivery jobs. 
  • A spike in Google search results in areas retailed to entertainment, cooking recipes, primary food supplies, cooking material and self-care products.

 


 

In such difficult times, it is best to stay close to your customers. Companies who invest in their core customer values and forecast their behaviors are the ones who often excel. Consumer demand is low but didn’t disappear - people have greatly shifted toward online shopping for all types of products. As part of their strategy for omnichannel delivery, organizations should invest in shifting online; this includes guaranteeing the quality of products sold online. Customers’ changing preferences are not likely to go back to pre-outbreak norms.

 

 

About

 

Ecomz is an award-winning ecommerce platform driven by a passionate team of experts and innovators in the world of ecommerce and backed by institutional investors such as the World Bank and leading VCs in the region. It is powered by advanced store-builder capabilities, aesthetic CX-focused themes, a comprehensive suite of AI and machine learning powered tools, in addition to innovative multichannel integrations. It provides its clients with unparalleled local support and guidance focusing on a professional, transparent and growth-driven approach. 

 

Ecomz operates in more than 55 countries, serving more than 7,000 merchants helping  them generate over $50M in sales. Named 2018 Top 5 B2B website by Seamless Conference, 2017 Top 10 Business by ArabNet, Ecomz has also been recognized by Google, Disrupt San Francisco (TechCrunch) and MIT Silicon Valley Program for its achievements and has been awarded by the 2018 Touch Innovation Program (TIP) and BLC Bank’s 2018 Brilliant Lebanese Award (BLA).

 

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