- More than 50 percent of ShopCash transactions were completed with coupon codes offered on the platform
- Online shopping accounts for nearly 50 percent of all completed purchases in Q4
Dubai: ShopCash, an online shopping cashback and deal discovery app for Middle East consumers, reveals the latest shopping trends in the UAE in Q4 2021.
UAE consumers across ages and backgrounds are getting increasingly cozy with the presence of e-commerce giants the likes of Amazon, AliExpress, and Noon in their lives. Purchasing groceries, household staples, and electronics can now be completed seamlessly without stepping into any brick-and-mortar shop.
As the ecosystem of online shopping platforms and digital payments continues to mature in the UAE, ShopCash examines the shopping trends in the UAE for the 4th quarter of 2021.
Mobile-optimized commerce
In the Middle East, UAE ranks high in terms of its internet connectivity and tech-savviness. Recent data shows that 99 percent of UAE residents are active internet users with 97.60 percent of the total population being smartphone owners/users.
Add to that the fact that UAE residents actively use their mobile devices at an average of nearly eight hours per day, consumers are more likely to purchase from online platforms and brands that are optimized for mobile devices.
This trend is reflected in ShopCash’s data which shows that approximately 80 percent of all cashback transactions have been completed through its mobile app and website.
Going forward, expect e-commerce websites to optimize their mobile page, apps, and woo shoppers with mobile-only perks and discounts.
More options for digital payments
Online shopping platforms are reporting a drop in cash-on-delivery options since the start of the pandemic. This trend will further give rise to newer methods of payment which may include digital wallets, in-app social shopping, schemes such as ‘buy now pay later,’ and other emerging fintech/paytech options.
E-grocery platforms
The shift in consumer preferences to shopping online for everyday items such as groceries, health, personal care, household, and other daily needs continues to be an observed trend in ShopCash UAE and Saudi Arabia, accounting for nearly 50 percent of all completed purchases in Q4.
Meanwhile, electronics, the likes of cellphones and other electronic devices, has been the second most popular category accounting for about 20 percent of purchases made in the UAE and Saudi Arabia.
Consumers will continue to shop online as they become more familiar with the convenience and safety of online shopping and contactless transactions. This is also spurred by the fact that food delivery and ride-hailing apps have pivoted to include groceries and other essentials as part of their services.
Rewarding the consumers
Consumers that are now familiar with online shopping will continue to search for ways of saving and getting the best value for their money. Conversely, from the retailer’s perspective, rewarding consumers with cashback programs, discounts, or frequent flyer miles is an effective method of establishing loyalty and ensuring repeat business from consumers.
ShopCash also provides shoppers with coupon codes and discounts which shoppers may stack on top of their cashback transactions. This translates to even greater saving opportunities for shoppers. In Q4, more than 50 percent of ShopCash transactions were completed with coupon codes offered on the platform.
Marketplaces are preferred
With businesses shifting to online selling, many that didn't even have a website before 2020 have suddenly come online. However, consumer behavior continues to favor convenience and choice which is why consumers prefer making their purchases on online marketplaces rather than on single brand e-commerce stores.
This has also been the trend observed on ShopCash. Marketplaces-related transactions have so far accounted for over 80% of the purchases made by shoppers. Marketplaces continue to offer the widest variety of products, flexible delivery options and convenient payment methods which have helped them gain the trust of shoppers.
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