The growth of e-commerce in Egypt

February 25, 2020by takla khoury0

Egypt is one of the most important markets in the region and one of the most promising countries for the growth of e-commerce , as it ranks first in the number of Internet users in the MENA region, with more than 50 million users, most of them young people, which enhances the growth of the e-commerce sector locally, and contributes to advancing efforts Digital transformation and financial inclusion in Egypt.

The e-commerce market is growing rapidly not only in Egypt but all over the world, as the number of people who do online shopping reached about 1. billion people in 2019, it is expected to exceed 2,7 billion by the end of 2020, which is nearly a quarter of the world’s population.

The growth of E-Commerce in Egypt

 

The current situation in Egypt coincides with the world’s adoption of a new strategy commensurate with the rapid developments in the information technology industry, in addition to that Egypt is implementing a number of programs and initiatives that stimulate the e-commerce sector and activities.

In 2016, some organizations in Egypt included local companies providing e-commerce services to the program and provided them with the additional support of 5% on their exports of e-commerce products and services.

Egypt recently provided support to creativity and young creators in the field of electronic commerce and provides the necessary support for local startups, as it sponsored and supported more than 19 startups working in the field of electronic commerce since 2013, representing 16% of the total startups incubated by the authority through a center Technological innovation and entrepreneurship.

consumer behavior towards online shopping

Some bodies in Egypt provide the necessary support to build a set of specializations and skills necessary and essential for the success of e-commerce and internet marketing projects, as they offer a package of training paths for young people and workers in the e-commerce sector, including analysis and data science, graphic design and websites, and software development with certified certificates from Major universities and international technology companies through the Future Technology Pioneers initiative and other initiatives of the Authority and its subsidiaries.

The optimal exploitation of the growth of the volume of trade and electronic platforms in Egypt will not only come by attracting more investments and achieving more revenue and digital sales of foreign products, but by supporting the industry and local products and using electronic commerce platforms to increase Egyptian companies ’exports to various global markets.

 

marketing research study example in Egypt

What is The current scene of e-commerce in Egypt ?

The Egyptian market has become one of the most attractive e-commerce markets to the attention of investors and the business community globally. Today we are witnessing an increasing demand for our services in Egypt from our regional and international clients who want to expand their business in Egypt.

Local companies are also seeking to cooperate with us more in order to enhance their sales rates from e-commerce, and the country may face some challenges, especially with regard to clarifying the full potential of e-commerce, especially the electronic payment operations and the difficulty of shipping products.

In addition to the low consumer confidence in e-commerce, but all indicators reflect the readiness and readiness of the Republic to overcome these obstacles soon

We mention two of these positive indicators

–  the first is the great enthusiasm and the growing desire to develop the e-commerce sector, which represents one of the main pillars of the success and strengthening of this vital sector

–  the second is the average age of the Egyptian society

As the youth segment forms the largest group, and we witnessed this in Turkey a few years ago, and how this group was able to quickly adapt to good technologies, including e-commerce; especially that they have an open-minded and curious trait that helps them learn about all that is new.

online buying behavior and ecommerce marketing services

the opportunities for growth in this sector during the coming period?

Egypt has great capabilities and ingredients that help the growth of e-commerce, and with regard to the state of payments in the Arab world, the volume of e-commerce in Egypt will reach 2.7 billion dollars by the year 2020, recording huge growth, especially as e-commerce is in the year 2014 recorded only 1.4 billion dollars,

I am very confident that the youth segment in Egypt will drive the growth and prosperity of electronic commerce, and I would like to mention here that many of the leading electronic commerce platforms in the Arab region and Africa, such as “Jumia”, “Noon” or “Souq.com” (a subsidiary of Amazon) is very popular in Egypt, all of these ingredients also help the adoption and growth of e-commerce.

Statistics on the e-commerce market in Egypt

10% of retail sales globally are through e-commerce, in the Middle East it has not reached 2% yet, as Egypt is still one of the least-traded countries in electronic transactions in the region with only 2.5%, for those who argue about it.

Although the number of Internet users in Egypt reaches 48 million, the percentage of those who conduct electronic transactions does not exceed 8%.

When talking about electronic transactions in Egypt, the payment system in the United States of America eats more than 60% of operations in the region compared to only 5% in countries like Britain and France.

More than 56% of the total number of people involved in the credit card industry in Egypt. Electronic in Egypt depends on payment

the obstacles of e-commerce and consumer behavior in marketing

What are the obstacles that may face increased rates of orientation towards e-commerce?

Egypt has the largest number of Internet users in the Arab world, with 48 million users; therefore about half of the population uses the Internet continuously, and this factor is the most important prerequisite for the success of e-commerce,

but many of the Consumers do not trust e-commerce, and sometimes communicate with retailers after completing the online purchase process in order to verify whether the site is working properly or not,

and here the need to enhance awareness levels about e-commerce emerges, taking consumer concerns seriously and working Ali Addressing it until the consumer feels confident when shopping online, and this is a top priority, and another challenge has been mentioned.

Consumers in Egypt prefer to pay in cash on delivery rather than using credit cards when buying online.

The websites that target consumers must address this challenge.

In order to increase the market share, even if that means investing in payment technology in the first place, delivery time and limited options are other obstacles in e-commerce, and the better the services provided by retailers, the larger numbers of shoppers turn to trade Electronic to take advantage of these advantages.

the customer behavior and the size of the market and the population

the number of companies operating in the Egyptian market today VS. the customer behavior and the size of the market and the population

when we look at the large population density in Egypt, we find that the percentage of companies operating in the e-commerce sector is very low,

and therefore we must encourage the population to adopt e-commerce and to put that among our main priorities, and we see a large increase in the number of shoppers Through the Internet in the Republic; however, the total number is still very low compared to other markets,

the growing growth in the number of online shoppers in Egypt contributes to increasing the numbers of e-commerce operators, and here retailers must prepare themselves to enter the e-commerce area immediately

until they are ready and ready at a time when e-commerce is spreading and become a prominent mass phenomenon in the market, and through our experiences and expertise, we can say that this matter will be achieved within the next two years.

consumer behavior in marketing and the infrastructure of Egypt

the infrastructure of Egypt is sufficient to expand the user base of e-commerce platforms and

Indeed, Egypt possesses the capabilities and ingredients necessary for the success of e-commerce in Egypt, and there is still a large space for improvements in this sector and achieving maximum benefit from it,

the shipping sector as an example: retailers in Egypt do not have their own fleets, but they work with a group Suppliers, which makes delivery outside Cairo very expensive, and retailers are exposed to financial risks when customers choose the option to pay on delivery and they refuse to receive the shipment, and this is a major challenge in the infrastructure and needs to be addressed in the market,

there are some of the emerging companies in Egypt Which struggled to overcome market challenges, as it managed to expand throughout the Middle East and North Africa region, as it provides the best medical services that consumers can benefit from

E-commerce challenges and online consumer behavior

To complement the challenges of electronic commerce, it requires special logistical services to ensure safety and quality for the consumer, which prompted the Chambers of Commerce represented in the General Division of Communications to work on preparing an integrated technological system in line with the state plan, and this system represents a breakthrough in the restructuring of the commercial sector in Egypt in full so that it is done on the basis of which to release all commercial information and link the product to the merchant with the consumer.

In addition, the system will serve both the merchant and the consumer for its contribution to eliminating monopoly, bribery, and favoritism, and on the other hand, it will save the time and effort that the citizen exerts due to the crowding out within government and private bodies.

These efforts and initiatives that all state institutions are working on in order to complete the integrated digital transformation program, must be faced with intense interest and support from the private sector institutions because of the benefits and gains that will extend to society at large.

E-commerce jobs in Egypt

E-commerce jobs give young people opportunities to work according to their desire.

For a few years, the “job” was a ghost that frightened every university graduate if he did not get it after graduation, but today we see changes in the job market after the emergence of new professions and specialties, e-commerce has created a large percentage of them, along with the spread of the phenomenon of startups that allows young people to establish their own small businesses with simple capital.

Finally

E-commerce has grown very rapidly in the last few years, not only in terms of expansion and spread but also in the quality and diversity of products. A large number of products sold through electronic commerce platforms have improved and the options for electronic products have become many and available to the consumer to make this market a comprehensive market.

By 2026, electronic commerce investors will acquire more customers, and the market will impose more modern and sophisticated mechanisms and methods, and everyone who wants to stay in the market will have to keep pace with modern trends to meet

the requirements of not only the market but our entire age.

We are a company specialized in providing marketing research services for all fields

If you want an integrated marketing research for your field, do not hesitate and contact us until the relevant department is able to contact you

Sources:

http://www.mcit.gov.eg/

Yearning for Consultancy?

You've come to the right place. Enter your details to get business inspiration, trending solutions and consulting tips delivered to your inbox.
Great Clients

Awesome Reviews

I would like to say a massive thank you to you and all of the team for being so supportive throughout the entire process. It has been a real pleasure working with you all. We shall keep you posted with regards to how this project evolves, and as soon as the next one lands for this market, we will be in touch.

https://www.feedbackme.com/wp-content/uploads/2019/04/img-quote-03-160x160.jpg
Leading global consulting company

These are very good reports. I’m now trying to put them into a much shorter presentation for the client. Thank you all for working so hard to make this a success. It is truly appreciated. I’m now looking forward to the next one (and the one after that!)

https://www.feedbackme.com/wp-content/uploads/2019/04/img-quote-01-160x160.jpg
Leading research agency

We always get a clear direction on what to do when we work with you. That in our opinion is very important for a research agency

https://www.feedbackme.com/wp-content/uploads/2019/04/img-quote-06-160x160.jpg
Leading government entity in UAE

I would like to say a massive thank you to you and all of the team for being so supportive throughout the entire process. It has been a real pleasure working with you all. We shall keep you posted with regards to how this project evolves, and as soon as the next one lands for this market, we will be in touch.

https://www.feedbackme.com/wp-content/uploads/2019/04/img-quote-02-160x160.jpg
Leading global consulting company
bt_bb_section_bottom_section_coverage_image

Leave a Reply

Your email address will not be published. Required fields are marked *