Discover key insights from a 2014 Mastercard study on Saudi online shopping preferences. Overcome challenges and boost E-commerce by prioritizing trust, accessibility, and affordability.

Saudi survey respondents indicated what they would like to see in the future that would further motivate them to do their shopping on the Internet in a 2014 study conducted by Mastercard. They explained when and why they chose to shop online versus in stores. To build successful E-commerce markets in Saudi Arabia, it will be critical to emphasize the trustworthiness of both the website and the payment platform.

When deciding whether or not to purchase online, consumers cited three primary concerns: the reputation and apparent trustworthiness of the website, the reputation and security of the payment platform, and the value of the items. Citizens were more likely to buy if the website had been recommended by other Saudis or was known to be legitimate, and if it used a financial platform familiar to Saudis, such as PayPal or CASHU. Airlines, travel expenses, grocery and home products, electronics, and clothing were the most frequently purchased items. 

However, reliance on an unreliable and costly payment method has been a major impediment to E-commerce growth in Saudi Arabia. Due to mistrust in payment platforms, many Saudis prefer cash delivery methods, in which they order goods online and pay at their doors. 

This trend is frustrating for online markets; NAMSHI, a fashion website, reported a 40% return rate on average, indicating an unsustainable business model. Cash-on-delivery sales accounted for more than 90% of their total revenue. Enhancements to Saudi Arabian e-commerce platforms that put trust, accessibility, and affordability first are also highly desired by Saudis.

Saudis also expressed optimism about developments that would make online shopping more accessible and beneficial to brick-and-mortar stores. According to 55% of consumers polled by MasterCard, lower delivery fees would greatly increase their likelihood of shopping online. Ease of additional service charges and streamlined, user-friendly transaction methods were also identified as important areas for improvement. 

Though reliable product delivery to Saudi Arabia may be expensive, the ability to provide that service for a low fee may be a major factor driving Saudis to prefer one site over another. According to another interesting finding from the survey, Saudis are more likely to buy from environmentally responsible producers. In general, however, Saudis are eager for e-commerce developments that will result in trustworthy websites and online markets with low service fees.