September 2004
More and more online buyers in the Middle East are opening their wallets to snap up books, gifts, and computer software through the Internet, according to an interesting survey of online buying habits carried out by cashU.com, one of the leading and most popular Internet payment system in the Arab countries.

Supported by sales statistics of products and services sold through the vast cashU network of international retailers and online buyers, the study found that books and gifts accounted for more than 57 percent of the total online sales last year, with 33.8 percent of the buyers purchasing a diverse range of English and Arabic book titles. Other popular items were gift items (23 percent), computer software (19 percent), music and videos (9.3 percent), automobile spare parts (6.6 percent) and cosmetics (6.6 percent).

The GCC outshone the rest of the Arab countries in online purchases, accounting for more than 52 percent, while the Levant countries represented 26.5 percent - a trend attributed to higher incomes, greater buying power, and increased awareness about the advantages of e-commerce in the GCC region.

Explaining that the findings were a comprehensive analysis of the changing online retail landscape in the region, Rami Araj, distribution manager for cashU.com, said the pattern of buying habits was largely determined by underlying economic trends prevalent in the different countries.

"While customer confidence in e-commerce throughout the GCC countries continues to remain robust, merchants in the Levant and North Africa are showing an increasing preference towards incorporating the latest online retailing trends in their marketing strategies", Araj pointed out. "Some of the main aspects they are emphasising to their potential buyers is the security and safety involved in the online transactions."

The analysis of shopping habits online also focused on the behavioural dynamics of browsers (those who research but do not purchase online) and buyers (those who purchase online). The cashU survey pointed to an interesting profile of a typical Middle Eastern shopper.

"They come from all walks of life, are highly motivated, know what they want, and are not daunted by the rising costs of shipping and postage", Araj said. "The majority of the shoppers are in the age 18 to 35 bracket, representing 71 percent of the shoppers."

Araj stated the new findings would further encourage online retailers to redevelop their strategies and market their products and services to a more focused target group of buyers. He added that the success of bigger players such as Amazon.com and ebay had compelled many e-merchants in the Arab world to remodel their websites to international standards, and incorporate some of the latest security features in transactions.

"Online retailing in the Arab world is now turning more specialised with merchants adopting a more focussed approach to contact their target audiences and establishing dedicated sales teams to handle orders through the net", Araj stressed.

The cashU survey also noted a dramatic increase in purchases of consumer electronics such as DVD players and home-theatre equipment - a positive trend that has been accelerated by the introduction of new advances in DVD and MP3 technology. Men proved to be more enthusiastic purchasers of such goods.

© ArabAd 2004