Middle East B2C E-Commerce and Payment Market 2021 & COVID-19’s Impact

Middle East B2C E-Commerce and Payment Market 2021 & COVID-19’s Impact

Middle East B2C E-Commerce market value projected to double between by 2025: new yStats.com report.

The latest publication from Germany-based online research firm yStats.com, “Middle East B2C E-Commerce and Payment Market 2021 & COVID-19’s Impact” provides insights into the current state and future trends of the B2C E-Commerce and payment market in the Middle East. Among other finding, the publication reveals that “Electronics, appliances and media” product category was expected to dominate in the Middle East B2C E-Commerce market by 2025.

Despite a steady B2C E-Commerce market size increase in the Middle East in 2020, the growth rate remained relatively low

In a pre-COVID-19 assessment, the value of the region's B2C E-Commerce industry was anticipated to rise by more than 20% year on year in 2020 from 2019. However, after the onset of COVID-19 sales volume surged even more and were estimated to almost double from 2020 to 2025. Just two countries in the region, UAE and Saudi Arabia controlled a sizable portion of the market, accounting for more than 70% of the total in 2020.

Consumers’ preferences for digital payments in the Middle East surpassed cash on delivery in 2020

Consumers opted for online purchases and contactless payments more during the outbreak in 2020, indicating widespread adoption of digital commerce in the region. Furthermore, in 2020, over 50% of consumers in the region will use digital payments while buying online, compared to only 36% who will use cash on delivery. Convenience, quickness, avoiding human touch, new ways to pay, and control, were cited as reasons for the change.

By 2025, the “Electronics, Appliances, and Media” product category was expected to lead the Middle East B2C E-Commerce industry

Consumers developed preferences in product categories to be purchased online as online shopping usage grew. The most popular categories among shoppers in the Middle East were: ""electronics, appliances & media,"" ""fashion & beauty,"" ""toys, hobby & DIY,"" and ""digital services (food delivery, events, fitness & services)."" Aside from that, FMCG (fast moving consumer goods) E-Commerce grew steadily from 2015 to 2020, more than doubling from 2019 to 2020 as the pandemic movement restrictions forced consumers to shop online for daily necessities.