E-commerce in Saudi Arabia (2022)

Highlights

• Revenue in the eCommerce market is projected to reach US$11.74bn in 2022.
• Revenue is expected to show an annual growth rate (CAGR 2022-2025) of 19.51%, resulting in a projected market volume of US$20.04bn by 2025.
• With a projected market volume of US$1,412.00bn in 2022, most revenue is generated in China.
• In the eCommerce market, the number of users is expected to amount to 26.4m users by 2025.
• User penetration will be 61.5% in 2022 and is expected to hit 70.9% by 2025.
• The average revenue per user (ARPU) is expected to amount to US$532.80.

The e-commerce market in Saudi Arabia

Saudi Arabia has the largest population in the GCC, with a tech-savvy and growing young population, which makes it a key market player in MENA. In 2020, around?90 percent of the population had internet access. These factors eased e-commerce adoption among the population, with around 80 percent of?active internet users in Saudi Arabia engaging in online shopping, which is the same share as in China. Thus, the e-commerce market is one of the largest across the MENA region and is expected to continue growing.

Top 20 online stores by net sales in Saudi Arabia (2020)

Saudi Arabian top stores

• Namshi.com heads the list of top 10 Saudi Arabian stores
• On average, Saudi Arabian top stores achieved year-over-year growth of 19% in 2021

Top stores in Fashion

• 46% of online stores in Saudi Arabia among the top 100 are active in Fashion
• Namshi.com is the largest player, while next.sa leads in terms of growth

Top stores in Electronics & Media

• 26% of online stores in Saudi Arabia among the top 100 are active in Electronics & Media
• Jarir.com is the largest player, while alhaddadshop.com leads in terms of growth

Top stores in Toys, Hobby & DIY

• 34% of online stores in Saudi Arabia among the top 100 are active in Toys, Hobby & DIY
• Jarir.com is the largest player, while adidas.com.sa leads in terms of growth

Top stores in Furniture & Appliances

• 31% of online stores in Saudi Arabia among the top 100 are active in Furniture & Appliances
• Extra.com is the largest player, while homeboxstores.com leads in terms of growth

Top stores in Food & Personal Care

• 48% of online stores in Saudi Arabia among the top 100 are active in Food & Personal Care
• Nahdionline.com is the largest player, while al-dawaa.com leads in terms of growth

The online shoppers in Saudi Arabia

Online shoppers characteristics

• The number of eCommerce users is expected to grow by 22% to 34 million users in Saudi Arabia by 2025
• 34% of online shoppers in Saudi Arabia have a high household income

Online behavior

• 80% of the population in Saudi Arabia shops online
• The top 3 interests of online shoppers in Saudi Arabia are Clothing, Shoes, and Consumer Electronics

Online shopping

• 55% of online shoppers in Saudi Arabia research online when planning a major purchase
• Consumer Electronics and Clothing are mainly searched for online
• Clothing and Shoes are the main categories for online shopping in Saudi Arabia

Assessment of the eCommerce market in Saudi Arabia

Growth potential

• The market volume of the top 100 Saudi Arabian online stores has increased by 61% since 2018
• The market volume of the top 5 Saudi Arabian stores has increased by 17% since 2018

Share of online pure players

• Regarding numbers, 54% of the top 100 Saudi Arabian stores are pure players - 60% in sales.
• Among the countries analyzed, Saudi Arabia has the highest share of pure players by numbers.

Net sales distribution

• The top 5 stores accounted for 42% of the top 100 net sales in Saudi Arabia in 2020
• The top 6-25 stores accounted for 43% of the top 100 net sales in Saudi Arabia in 2020

Online share of total retail sales

• Electronics & Media has the highest online share among all Saudi Arabian categories.
• An international comparison of online shares shows the potential for higher online penetration in all Saudi Arabian categories.