Insights into the growth of Saudi Arabia ecommerce profiling payment methods, target audiences, marketing, social media, economy and logistics
The World Bank ranks Saudi Arabia 25th in the richest countries by purchasing power. Home to 34.27 million people with a total GDP of US$792 billion, GDP per capita is currently US$20,741 and expected to reach US$23,332 by 2025.
Digital User Insights
The largest age group of ecommerce users are the 45-54-year-old group at 31%, followed closely by the 35-44-year-old age group at 28%.
Total ecommerce revenue across all product categories is US$7 billion, expected to reach US$8.6 billion by 2025. Fashion is currently the leading product category, accounting for US$2.28 billion market share. Electronics and Media is the second-largest product category, generating US$2.24 billion.
By 2025, Electronics and Media will be the leading product category, valued at US$2.8 billion. Fashion will be the second leading product category and should reach US$2.7 billion.
Saudi Arabia is ranked 52nd in the World Bank Logistics ranking, however, this ranking includes rural areas that are not densely populated. Saudi Arabia is 83% urbanized and so international retailers should look to the cities, where state of the art logistics makes cross-border trade easy.
Preferred Online Payments
64% of online shoppers have made online payments in Saudi Arabia using Cash on Delivery, with 46% making payments using credit cards. Debit Cards, Gift Cards and Digital Payment Systems are also used as alternate payment types online.
Where does Saudi Arabia buy from?
Internet and Device Usage
66% of online shoppers used a mobile device to make their most recent purchase, with 44% using a desktop/laptop.
Marketing spend in Saudi Arabia has grown slowly since 2010, current spend is US$1.1 billion . Newspapers leads the charge accounting for just under US$700 million of the market spend. Radio accounts for the second-largest market spend, growing faster than any other market segment, at US$231 million.
Saudi Arabia’s Social Media usage has grown consistently in recent years, with further growth projected by 2025. User penetration is currently at almost 35%, and popular networks include Whatsapp, Facebook, Twitter, Instagram and GooglePlus.
For more market insights, check out the ESW series of blogs covering a range of emerging ecommerce markets.
*Insights derived from ESW data, Statista, WorldBank, OECD and other industry sources.