Consumer Perception About E-Commerce Platforms Has Been Impacted By The Challenges Of COVID-19

Business

Consumer Perception About E-Commerce Platforms Has Been Impacted By The Challenges Of COVID-19

The pandemic generated by the novel coronavirus (COVID 19) is pushing clients in the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) to turn to e-commerce platforms in getting their required needs rather than going to shopping malls and retail stores, demonstrating an overnight shift of customer behavior from bulk-buying to online shopping, in accordance to ITCAN, a leading e-commerce technology and digital marketing company focused on e-commerce performance marketing.

The company has stated that online orders on particular products such as skin care and other personal hygiene items have emulated an upward surge following new regulations by authorities to regulate outside activities and advising people to stay at home to constrain the further spread of the coronavirus infection.

ITCAN noticed that the quick increase in these categories between February 26 and March 26 in both countries. In the UAE, the rate of orders for skin care shoot up to 143.96 per cent with 99.92 per cent of the hike came from orders made by new users, uncovering a conversion rate of 33.45 per cent in terms of website visitors or footfall. For the same category, orders in KSA increased to 105.37 per cent with 32.7 per cent by new users and a conversion rate of 63.59 per cent.

The makeup category also received huge orders in the UAE attaining 275 per cent with 148.57 per cent order placed by new users. The conversion rate was 67.93 per cent. In KSA, the orders for makeup products multiplied to 769.67 per cent by March 26 with 187.15 per cent of the orders placed by new users, caused to a conversion rate of 276.48 per cent.

Mansour Althani, CEO & Co-founder of ITCAN, stated that, The present global health condition is leading consumers globally to accustom to some other ways of receiving their goods, especially via online shopping and they are likely to spike even more as cities increase the level of constraints on peoples movement outside their homes. This change in consumer behavior puts e-commerce platforms on the limelight to assist people in the region who are still used to shopping their needs in malls and stores to move towards online marketplaces.

Althani mentioned that even though the situation throughout the GCC is under control and necessary things are very much available in all supermarkets, there remains a high turnout on e-commerce platforms for safety and preventive reasons.

The online orders made between February 26 and March 26 reflects a great rise and this constantly raising demand are driving major e-commerce organizations to begin to establish their own standards on what sort of products are thought to be important to control the increase of orders and meet peoples needs in accordance. We see this events effects on consumer behavior towards online shopping will go beyond the present pandemic and will serve as a stimulation to further speeding up the growth of e-commerce in the region, he mentioned.

ITCAN noticed studies carried out earlier that revealed up to 55 per cent of shoppers in the UAE and Saudi Arabia favor smartphones when shopping online. More than 60 per cent of shoppers in the UAE and Saudi have made at least one online transaction, in accordance with Bain & Company based on a 2017 report.

E-commerce is already a rapidly-growing market in the Middle East, however, its necessary role in society has been spotlighted by the present health crisis, solving peoples troubles and potentially saving lives. As the virus has an impact on many businesses, many have quickly responded to the need of the hour and developed their online presence to maintain their customers and appeal to newcomers.