Understanding e-Commerce Challenges in The Middle East And How to Overcome Them

May 12, 2021

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4 Mins Read

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Understanding e-Commerce Challenges in The Middle East And How to Overcome Them

May 12, 2021

.

4 Mins Read

May 12, 2021

.

4 Mins Read

Download

Blogs >>

The eCommerce industry is one of the fastest-growing sectors in the Middle East. It is predicted that by 2022, the eCommerce industry will be worth $48 billion. As a result, several startups are keen on setting up eCommerce businesses.

However, like every other sector, eCommerce comes with its own unique set of challenges. As business growth mentors, we have seen several eCommerce businesses struggle to overcome such challenges. Here’s a ready reckoner of the common issues you may face in the Middle East and how you can overcome them.

1.   Payment methods

Digital payments are not extremely popular within the Middle East. While credit cards are popular in the UAE, people residing in Saudi Arabia cannot use cards as freely since some of the card issuing companies do not comply with Sharia laws. There’s still a preference for paying for eCommerce transactions in cash. Moreover, customers are also prone to falling prey to cybercrimes when transacting online.

That’s why you need to keep multiple payment options available on your website or app. You should also work towards securing the payment gateways so that customers feel safe while entering their card details. Using digital wallets is another potential avenue you can explore as customers can simply load their wallets without running the risk of sharing card details during every transaction. Additionally, make sure to update the SSL certification of your website for an added level of protection.

personalised-experience-for-ecommerce2.   Personalized experience

Gone are the days when businesses could adopt a one-size-fits-all approach and get away with it. This is the age of hyper-personalization, and consumers expect eCommerce to be personalized as well.

Businesses need to undertake market research if they are keen on getting a pulse on the current trends and preferences. You will also need to invest time towards improving the look and feel of your website for a better UX experience. From the layout to the product listing, the customers expect something unique to make their visit memorable. At the same time, eCommerce players should invest resources for marketing and promoting the business to increase brand awareness.

3.   Lack of trust

Trust is the backbone of any business. In the case of eCommerce, it is even more crucial as your customers cannot walk into a brick-and-mortar shop and meet you in person. Many customers shy away from purchasing online as they do not feel confident and fear that they may be duped.

To overcome this problem, start by improving your presence on the internet. Work on SEO to rank higher on search engines. Hire an expert to redesign your website for seamless navigation and a better user experience. Pay attention to the loading time.  These factors go a long way in establishing your goodwill.

4.   Logistical challenges

ecommerce-logistical-challenges-and-solutionsLogistics is a huge part of any eCommerce transaction. Whether you are procuring the goods from any third party or delivering the final products to the customers, a strong framework for logistics can be incredibly helpful. Several eCommerce business owners find it taxing to ensure timely delivery of products, especially for low-value items.

To resolve this issue, head straight to the warehouse and fix the bottlenecks. Doing this can help you to improve the delivery times drastically. On-time deliveries are the easiest way to impress your customers and get repeat business. For certain products, you can also maintain a ready inventory to avoid wasting any time procuring them. You can get the product ready for dispatch as soon as the order gets confirmed.

5.   Customer retention

Retaining customers is no cakewalk. They are spoilt for choices — unless you can engage them at a personal level, getting a second order can be extremely difficult.

This is where you can amp your marketing efforts to make an indelible impression on their minds. Send out weekly promotional emails that highlight the best offers. Start a loyalty program to get your customers to spend more money. You can even send promotional videos about new product launches. Make use of your social media channels to stay on top of their minds. Remember that you don’t have to sell round the clock actively — you simply need to make your presence felt so that customers don’t forget about you.

how-identify-target-customers-for-your-ecommerce-business6.   Identifying the right customers

Every product or service needs the ideal product-market fit to sustain itself. If you are positioning your products to the wrong set of customers, no amount of marketing can salvage the business.

Learn about the latest trends in the industry and what kind of products click with your customers. Track the behavior of the visitors to your website or app and send them retargetting emails. To take it a notch higher, you can also offer a multilingual experience to the customers to make them feel extra special.

Need help with overcoming the challenges of your eCommerce business?

Every eCommerce business in the Middle may not be a smooth-sailing ride. Unless nipped in the bud, the challenges plaguing the industry may drive your business to the ground. While you can definitely get some tips from the ideas shared above, doing it alone can be intimidating. That’s why seeking the help of a business mentor is crucial, as they can help you triumph over such problems.

If you are setting up an eCommerce business in the UAE and want to get a headstart over others, make sure to sign up with Jupiter Business Mentors for business mentoring. Business mentoring can help you to learn from the experiences of mentors and chalk out a strategy to move forward. Our platform connects you with qualified mentors across various verticals who are waiting to be a part of your growth story.

If you want to know more, sign up right away. You avail of 90 minutes of free sessions with any six mentors on our platform and allow us to help you stay ahead of the curve.

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