Infographic: Online Grocery Shopping Rises In Saudi Arabia's E-commerce Upswing
Despite the convenience associated with e-retail, factors like product quality, assortment, price and efficiency in delivery play a key role in consumers switching to e-grocery.
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Even with limitations such as minimum-order limits, steep delivery charges, and the quality of foodstuff, a study by PayFort and e-grocery startup Todoorstep.com shows that there has been a 35% monthly growth in online grocery business in Saudi Arabia- a noteworthy rise considering how the Kingdom is a fledgling market for e-commerce in general. Despite the convenience associated with e-retail, factors like product quality, assortment, price and efficiency in delivery play a key role in consumers switching to e-grocery. Sure enough, tech-savvy millennials and Saudi Arabian women restricted in terms of travelling for grocery shopping emerge as dominant patrons of this emerging industry. While cash-on-delivery continues to trump digital payments, the study estimates a bright future for online grocery in the country, given the increase in number of players starting this business, and a piqued focus among traditional retailers in Saudi Arabia to gain a first-mover advantage. Another interesting detail from the infographic: over 75% of the online grocery shopping done by Saudis happens on the go, on their mobile devices.
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