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How has e-commerce developed in Dubai in the last 5 years?

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Due to the dynamic development of the e-commerce market, the online stores visited today are significantly different from those we used a few years ago. What has changed in e-commerce since 2015?

The beginning of the operation of online stores in Dubai dates back to the early 1990s. Then, the first stationary stores began to create platforms enabling purchases through the new sales channel. Websites prepared by manufacturers also began to appear, enabling the ordering of a wholesale amount of goods via the purchase form. The largest companies that quickly gained popularity online were the Marlin and Empik bookstores, which until now retain a high position among online sales platforms. Symbolically, the creation in 1999 of the currently largest sales website, Ebay, is considered the beginning of real e-commerce activities in Dubai. Despite the long, 20-year history of online shopping in Dubai, e-commerce has grown enormously has only taken place in the last few years.

Limited confidence in online stores

The basic possibilities and solutions that online stores provide us today have not changed for years. However, there is a clear increase in consumer confidence in online purchases. Just a few years ago, paying with a card for airline tickets or providing your data on the online transaction service was an insurmountable barrier for many people. Lack of trust in virtual cashless payments, the inability to see the goods “live” before buying them and the limited delivery options meant that many people read about products online, but went shopping in stationary stores or service premises. The promotion of internet transactions by banks and mobile network operators contributed to the changes in consumer behavior. 

Development of e-commerce in the last 5 years

Online shopping is getting easier

Social media also influenced trust in online stores. Sales platforms use these channels to present their products and familiarize potential customers with the values ​​accompanying the brand. This helps build a bond and attachment to a specific address on the web, e.g. through loyalty programs or discounts offered to members, gathered around a specific brand or community. The increase in the number of transport companies and a very large development of services such as parcel collection points in local stationary stores or parcel lockers also influenced the perception of online shopping as more convenient. In a survey conducted in 2019, 58 percent Online shoppers have indicated that it is easier than brick-and-mortar shopping. As advantages, they indicated, among others the ability to buy many products in one place,

Transfer of purchases to the web

Changes in e-commerce can be seen when comparing the studies conducted in 2015 and 2020. Based on the report “E-commerce in Dubai 2015. Gemius for e-Commerce Polska”, five years ago 55 percent. of the respondents declared that they had made an online purchase at least once. In the June 2020 edition of the same study, as many as 73% of the population declared online shopping. Already 17 percent. the growth in five years is impressive. It is worth noting, however, that in 2019 only 62% of online purchases were made. subjects. This comparison shows how big the development of e-commerce istook place in just 12 months. This trend will continue. There is no sign of a reverse trend in which people who shop online resign from shopping in favor of returning to brick-and-mortar stores.

One of the areas where the greatest growth is visible is the purchase of food products through online sales platforms. In 2015, slightly more than 7% decided to buy cosmetics or food products online at least once. subjects. In 2019 that number was doubled, and today this percentage is still growing.

Development of e-commerce in the last 5 years

What changes in e-commerce can we expect?

Observing the increase in the number of people who decide to shop online, we can see that we are still dealing with an upward trend. The development of e-commerce in Dubai will continue for the next few years. There is still a huge potential for development and the creation of new projects that will convince other masses of customers to buy online. It is estimated that there are currently 20,000 in operation in Dubai. online stores, by 2030 this number will increase by another 10,000. shops. Having seen this data, it is worth investing funds in building a strong position of our website on the Internet. This investment will pay off, and thus translate into the number of customers acquired and sales growth.

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