Seller A : From the bottom of my heart, the Middle East station, the UAE station, and the Saudi station are stupidly confused, please advise!
Seller B: I am relatively new to the Middle East. Is it suitable for e-commerce?
Seller C: There are diverse cultures in the Middle East, what should I sell?
Seller E : What are the advantages of the Middle East site compared to other sites ?
Seller D : Is it okay for a novice seller to open their first store in the Middle East ?
Amazon’s global store opening: Now, the editor is here to answer your questions and explore the mysteries of making money in the new blue ocean in the Middle East!
01. Which countries does the Middle East station cover?
The United Arab Emirates and Saudi Arabia set a precedent, and it can also be expanded to many countries in the Middle East!
Middle East location
The Middle East refers to the part of the region from the southern part of the eastern Mediterranean to the coast of the Persian Gulf, including about 23 countries and regions such as Saudi Arabia and the United Arab Emirates, covering an area of more than 15 million square kilometers.
The picture shows the scope of the Middle East
Which countries does Amazon Middle East cover?
Middle East Station = UAE Station + Saudi Arabia Station
Since Amazon acquired Souq, the largest e-commerce website in the Middle East in 2017, it has successively opened two major sites, the UAE site and the Saudi site, to Chinese sellers in 2019 and 2020.
It can also be expanded to many countries in the Middle East!
That's right! The FBA Export program enables sellers to expand their business to countries such as Oman, Bahrain, and Kuwait without having to deal with the complexities of selling internationally, at no additional cost.
02 I don’t know the Middle East, is it suitable for e-commerce?
Suitable for!Good e-commerce environment and great potential
Population, youth, and money!
◾United Arab Emirates: The total population is expected to reach 106 million in 20241
◾Saudi Arabia: The total population is expected to reach 425 million in 20402
◾UAE: 40.4% of the population is under 30 years old1
◾Saudi Arabia: 46.3% of the population is younger than 30 years old2
Rich buyers, high GDP per capita
Excellent e-commerce environment
Internet penetration rate exceeds 74%
More than 74% of people in the Middle East have access to the Internet, including 95.4% in the UAE1 , followed by Saudi Arabia with 88.1% penetration2
High penetration rate of e-commerce
The e-commerce penetration rate in Saudi Arabia is as high as 90% 3 , and that in the UAE is as high as 69% 4
E-commerce has great growth potential
The number of online consumers has skyrocketed
Data show that the growth rate of online consumers in the Middle East in the past year ranked first in the world, reaching 5.2%, surpassing Latin America and the Asia-Pacific region5
Rapid growth of e-commerce volume
◾In 2022 , the volume of e – commerce in Saudi Arabia increased by 19% year-on-year 3 . The volume of e-commerce in the UAE increased by 25% year-on-year, and the net sales of Amazon UAE station increased by 35% year -on-year, ranking first4
◾The popularity of the Internet has promoted the growth of e-commerce in the Middle East. It is estimated that by the end of 2025, the volume of e-commerce in the Middle East will reach 50 billion US dollars, with a growth rate of 14% 6
Amazon is well loved
Amazon is deeply loved in the Middle East and occupies the top 1 e-commerce website in the Middle East all the year round. 7 In 2020, the sales volume of Amazon UAE station is 162 million US dollars, ranking first in the UAE e-commerce sales 4
Customs clearance efficiency is higher than the average level in West Asia5
Efficient customs clearance in the UAE and Saudi Arabia can ensure that different types of cross-border goods can quickly complete the customs clearance process without adding additional costs, enhancing cross-border competitiveness
03 I don’t know Middle Eastern consumers, what are online buyers in the Middle East like?
It may be different from your perception!
Mainly young people!
◾United Arab Emirates
The majority of online shoppers in the UAE are young people aged 25-34 with financial means, accounting for 42% of the total 3
Saudi online shoppers are mainly young and middle- aged, 30% are 35-44 years old, and 28% are 25-34 years old 3
United Arab Emirates
Have a higher income!
◾UAE , 36% of online shoppers have higher household income4
◾Saudi Arabia, 34% of online shoppers have higher household income3
United Arab Emirates
Both the UAE and Saudi Arabia shoppers are dominated by men, accounting for 69% of the total 4 and 58% of the total 3
United Arab Emirates
Apparel, shoes, consumer electronics popular
Saudi Arabia and the UAE have similar consumption preferences. Clothing, shoes, and consumer electronics are the top three categories in terms of online search volume and online shopping volume in both countries.
The picture below shows the comparison of online search and online shopping categories in the UAE website
The red box is the highest three categories 4
The picture below shows the comparison of online search and online shopping categories on Saudi website
The red box is the highest three categories 3
04 In the Middle East, what is more profitable to sell?
The official selection recommendation is here! Help you sell well!
4 hot-selling categories in the Middle East station , master the hot-selling password
For the family members who are confused about the selection of products in the Middle East station, the benefits are here! For the four hot-selling categories: consumer electronics, fashion apparel, department stores, and daily consumption, three dimensions: high growth rate, high conversion, and continuous hot sales, the selected Amazon Middle East site selection and category trend guide has been released. ! Please put it away!
Potential money, high-growth selection!
In the past specific period of time, the sales growth rate and traffic ratio have increased significantly, and the "money" is considerable!
Drainage models, high-conversion products!
Generally speaking, it is cost-effective, high-performance and has a low price. Through these "potential stocks" high-conversion selections, it can attract customers and increase sales steadily!
Evergreen models continue to sell well!
Focusing on the preferences and needs of consumers in the Middle East, the higher unit price enables sellers to obtain higher profit sales opportunities!
05 Can the Middle East Station really make money?
Calculating the cost and profit, it is really profitable!
Low category commission
The same product is launched on mature sites and new sites at the same time, and Middle East sites can generally sell at a higher price, while commissions and delivery costs are much lower than mature sites, which greatly increases profit margins!
More logistics benefits and lower costs!
Fulfillment by Amazon ( FBA) New Arrival Warehouse Discount Program
Through FBA delivery, you can store the goods in the Amazon fulfillment center, and Amazon will pick up, package and deliver to your buyers for you, and you can achieve same-day/next-day delivery and cash on delivery. At present, Amazon Middle East can enjoy the "Amazon Logistics New Product Warehousing Discount Plan". FBA sellers who use this service will enjoy limited-time discounts such as storage fees and removal fees, allowing you to try new products at low cost!
Third-party logistics provider service project Pre-S
In order to solve the problems of high cost and high shipping standards in the Middle East, Amazon will launch a service project Pre-S supported by third-party logistics service providers in the Middle East station . This project can effectively help sellers save logistics costs, improve warehousing efficiency, and increase sales of hot-selling and new products.
low promotion cost
Compared with the fierce competition from mature sites, new sites are "virgin land" for marketing and promotion . Compared with mature sites, the traffic of the Middle East site still has room to rise, but this also makes the marketing competition much smaller and the cost is greatly reduced.
In summary!Higher profits than mature sites
Taking UAE and Saudi Arabia as examples, compared with mature sites in the United States, with the same selling price, the commission and delivery fee are lower, the income is higher, and the profit is higher.
*Exchange rate: 1 USD ≈ 3.7 6 SAR ≈ 3.67 AED
1. United Arab Emirates Statista Country Report June 2021
2.Saudi Arabia Statista Country Report June2021
3.eCommerce in Saudi Arabia 2021.pdf
4.eCommerce in the United Arab Emirates 2021.pdf
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8. ecommerceDB as of October 2021