Increasing confidence among consumers in security of online payments; 81% who have not purchased online before intend to within next 12 months
Dubai, United Arab Emirates: Online shoppers in the UAE are becoming increasingly savvy, with quality customer service ranking as important as competitive pricing when it comes to the motivation for shopping online according to a recent consumer survey* from JadoPado, a new e-commerce experience for consumers in the UAE.
The survey, titled 'JadoPado's Anatomy of E-commerce in the UAE', delved into consumers' online shopping habits such as what people typically purchase and what time of the day they like to shop. Among the respondents who had shopped online before, consumer electronics were the most common online purchase (85% of respondents), followed by travel and event tickets (58%), and software and applications (49%). In addition, the typical e-commerce shopper preferred shopping in the later hours of the day, with the majority of respondents making purchases between 4 pm to 12 am. The online consumer is also after instant gratification, with 50% of respondents expecting delivery within three days and a further 24% wanting their products to arrive within 24 hours of purchase.
Commenting on the survey findings, Omar Kassim, Founder of JadoPado said: "The survey underlines how consumers today are very discerning. Not only are they looking online for alternatives for the best deals, they are demanding great customer service as well. In order to capture the attention and wallet of online consumers, it is essential for e-commerce businesses to offer high quality experiences that combine top-notch customer service, competitive pricing and speedy delivery."
E-commerce spending in the region continues to grow rapidly, with a study by Visa valuing the market at approximately US$ 2 billion across the GCC last year with the UAE constituting over a quarter of this online spend. Credit card payment remains the most common form of online payment (75% of respondents), with cash on delivery being the second most common mode of payment for e-commerce purchases (55% of respondents).
While most respondents to the survey had bought at least one item online in the last 12 months, a small proportion (13%) acknowledged that they have yet to experience online shopping. Security and the inability to touch and test products prior to purchase were highlighted as the primary reasons for not doing so. However, an encouraging sign for the e-commerce market in the region is that a majority of these respondents (81%) intend to shop online in the next 12 months.
"This is an incredibly exciting time for the e-commerce market in the Middle East and the UAE. There is no question that awareness of the availability of advanced security and payment methods in the region's online space is growing. In the meantime, it is important to recognize that offering different modes of payments such as cash on delivery can speed uptake in the e-commerce market," Omar Kassim added.
JadoPado's Anatomy of E-commerce in the UAE - Key Findings:
1. Most important considerations for shopping online:
Pricing - 38%
Quality of customer service - 37%
Ease of use of e-commerce site - 31%
Convenience and speed of delivery - 28%
Product selection - 26%
2. Most common online purchases
Consumer electronics and IT - 85%
Travel and event tickets - 58%
Software and applications - 49%
3. Modes of online payment used
Credit card - 75%
Cash on delivery - 55%
Debit card - 28%
Paypal - 23%
4. How long are you willing to wait for delivery
One to three days - 50%
12 to 24 hours - 23%
4 days to one week - 15%
5. Reasons for not shopping online
Inability to touch and test products before purchase - 42%
Pricing - 42%
Online shopping is complicated - 24%
* A total of 2,052 respondents in the UAE were surveyed. 1,777 respondents have shopped online before, 275 have not.
About JadoPado Limited (Ltd.)
JadoPado is a leading e-commerce business in the UAE. Since its launch in March 2011, JadoPado has been a pioneer in shaping the region's e-commerce industry through developing a solid same day delivery model and creating awesome customer experiences. JadoPado has over 80,000 visitors and 290,000 page views on a monthly basis. For more information and to access the website, please visit www.jadopado.com.
For further information, please visit: Facebook: http://www.facebook.com/jadopado
Twitter: http://twitter.com/#!/jadopado
For more information, please contact:
Karlo Alfredo
Co-Founder & Chief Marketing Officer
JadoPado
T: +971 4 437 5609
E: ka@jadopado.com
Pooja Sagar
Junior Account Manager
Memac Ogilvy Public Relations
T: +971 4 305 0381
E: pooja.sagar@ogilvy.com
© Press Release 2013
