UAE E-Commerce Logistics Market 2021- Industry Growth, Demand, Business Opportunities, Size, share, Trends, Analysis and Forecast till 2027: Ken Research

How is the UAE E-Commerce Logistics Market Positioned?

The retail industry in the Middle East and North Africa (MENA) is on the verge of a pivotal shift. E-commerce is becoming a reality, reinventing consumers’ path to purchase, forming new customer experiences, disrupting business models, and creating growth opportunities for large and small retailers as well as for a new generation of e-commerce pure players. Mass Internet adoption in MENA took off around the mid-2000s, mostly driven by smartphones and social media and underpinned by faster internet speeds.

Currently, the UAE is considered the most advanced e-commerce market in MENA, with a penetration rate of 4.2% in 2017. The UAE enjoys many advantages that make it ideal for e-commerce growth. Its consumer demographic consists of a young internet-savvy population, with high social media usage. These people are more likely than some of their cohort globally to spend time online. E-commerce companies, whether they are online marketplaces, domestic retailers, or cross-border merchants, are tapping into the high latent demand, disposable incomes, and digital penetration that is favorable for the sector. The UAE’s e-commerce landscape is defined by its demographic profile and high income levels, with a high percentage of digital native young adults between the ages of 20 and 39. With all infrastructures, tools and options within ready reach, the UAE consumer, at most times, is only a click away from an online purchase. Brick-and-mortar players in UAE have been following different go-to-market strategies. Alshaya, Apparel Group, Chalhoub Group and Landmark Group established distribution partnerships with third-party e-commerce pure players in addition to launching their own brands online.

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UAE E-commerce Logistics Market has been observed in its growth stages of development, thus growing year on year majorly due to rising E-retailing coupled with increase in the number of online orders. The average last mile delivery charges in the UAE were evaluated at AED ~ per order in 2015 which further declined to AED ~ in the year 2020.

By Channel

The market has highly dominated by the 3PL players with a massive share of ~% in terms of annual shipments delivered during the year 2020. Marketplaces like Amazon and Noon which have their in house logistics arm are also dependent on 3PL partners to deliver their orders.

By Domestic and International Shipments

Domestic shipments (fulfillment model & marketplace model) dominate the e-commerce delivery in UAE. Domestic players through effective collaborations with global companies are enhancing their reach to the remote areas of UAE.

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By Mode

UAE being a small country, most of the shipments are delivered via road. Air express is used majorly for products coming from abroad. Moreover, ground express plays a significant role in first mile & last mile deliveries.

By Delivery Period

1-3 day delivery has dominated the market in terms of number of orders owing to increasing focus of the companies on providing better services coupled with increasing customer needs for better service.

By Type of Products

Fashion & Accessories and Consumer Electronics have dominated the online retail sector in UAE in 2020. Foods and Personal care is the third leading e-commerce category in UAE.

By Payment Mode

Emiratis still prefer COD over Prepaid Shipments owing to Lack of Trust but the trend is rapidly changing owing to increasing adoption of contactless payment options. During Covid, there has been an increasing interest shown towards digital payments but only on the trusted websites. Most of the SMEs still offer COD as the only payment mode in UAE.

By Return Rate

~% of the online orders got replaced / returned in 2020. Fashion is the category with maximum returns due to inappropriate sizes received by the customers followed by Electronics, as customers return these products due to defective pieces received.

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Key Topics Covered in the Report

UAE E-Commerce Market Overview
Cross Comparison- Major E-Commerce Players in UAE
UAE E-Commerce Logistics Market Overview
Cost Component for UAE E-commerce Logistics Industry
UAE E-Commerce Seasonal Demand
UAE E-Commerce Logistics Market Size
UAE E-Commerce Logistics Market Segmentation 2020
UAE E-Commerce Warehousing Landscape
UAE E-Commerce Warehousing Clusters
UAE E-Commerce Shipments Pricing Analysis
UAE E-Commerce Return Logistics Overview
UAE E-Commerce Logistics Market Growth Drivers
UAE E-Commerce Logistics Market Trends & Developments
UAE E-Commerce Logistics Market Government Role and Initiatives
UAE E-Commerce Logistics Market Logistics Constraints
UAE E-Commerce Logistics Market SWOT Analysis
Competitive Landscape of UAE E-Commerce Logistics Market
UAE E-Commerce Logistics Market Cross Comparison
Future Market Size and Segmentations, 2020-2025F
Covid-19 Impact on UAE E-Commerce Logistics Market
Analyst Recommendations

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