E-commerce in Saudi Arabia is a growing business with an enormous growth potential. In 2023, it yielded revenue of $ 12.5 billion, a 12 % increase from the previous year. The country’s e-commerce business in Saudi Arabia is expected to generate $ 20.8 billion by 2028. By 2029, the e-commerce users in Saudi Arabia are expected to increase to 63% by 2029.
Benefits of Starting a E-commerce Business in Saudi Arabia
The benefits of setting up an e-commerce business in Saudi Arabia are below.
- Large & Growing Market: The e-commerce sector is expanding tremendously, with more and more firms starting e-commerce businesses in KSA.
- Affordable Operating Costs: E-commerce companies usually have low overhead costs since they don’t require stores or offices and can reduce rent and maintenance costs.
- Access to Worldwide Markets: Due to robust logistics and shipping infrastructure in Saudi Arabia, the e-commerce business sector is recognized worldwide.
- Promising Future: The government has announced plans to invest SAR 100 billion (USD 28 billion) to speed up the sector’s growth, especially in logistics, and also to adopt friendly e-commerce regulations.
- Increasing Internet Penetration: In Saudi Arabia, more than 90% of the population has internet access compared to other countries in the region.
- Rising Disposable Incomes: The young and growing population and the increase in disposable income spur online shopping demand.
- Growing Awareness of Online Shopping: Saudi consumers are gradually becoming aware of the advantages of online shopping, such as convenience and low costs.
- Shift to Online Payments: Vision 2030 proposed that 70% of transactions be through cards and online platforms, thereby minimizing cash transactions.
How do you start an online business in KSA?
Starting an e-commerce business in Saudi Arabia requires proper strategy and execution. To begin your online business in Saudi Arabia, you may follow the under-mentioned steps:
- Choose an appropriate plan of business and model
The first step is to choose an e-commerce business model for your business. This can be either a Business-to-Business (B2B) or Business-to-Customer (B2C) model. Your offerings must be customized to meet the needs and preferences of your targeted customers.
- Choose a unique name for your Brand.
Select a unique name for your e-commerce brand that aligns with your business vision and values. The availability of the domain and trademark may be checked before choosing the name.
- Specify the Products/Services
It is essential to list the products or services by type, Brand, features, etc and have an efficient inventory management system to optimize the operations.
- Create your E-commerce website.
You need to create a user-friendly and visually attractive e-commerce website to showcase your products or services by using trustworthy e-commerce platforms.
- Register with Ministry
After you have finalized your domain and name, register with the Ministry of Commerce for commercial registration by following the steps required.
- Compliance: Follow Saudi regulations, which may include filing permits and documentation.
- Foreign investment license: Secure a Foreign Investment License, if needed.
- Other Approvals: Get any other necessary approvals from the authorities.
- Content and Product images
To attract potential customers, it is necessary to write appropriate product descriptions and design high-quality images. Optimization of your website content improves the visibility of your website on search engines.
- Payment Gateways
For smooth transactions, secure and convenient payment gateways must be incorporated. Providing various payment options to meet different customers’ preferences is essential.
- Social Media Marketing
Social media platforms’ rise in popularity can promote your business and engage your target audience. Develop a social media marketing strategy to get more people to notice your Brand and visit your website.
- Last Mile Delivery
A trustworthy logistics company may be engaged to deliver products to your customers safely and quickly. This would enable the customers to track their orders.
- Customer Service
Prompt customer service that satisfies the customers and solves their issues should be your top priority. Appropriate feedback from customers through customized channels would provide areas for improvement.
How can the Helpline Group help set up an e-commerce business in Saudi Arabia?
Helpline Group brings over 25 years of expertise in setting up businesses, including an e-commerce company in Saudi Arabia, and offers clients a seamless, hassle-free experience.
Our seasoned professionals with in-depth knowledge of setting up an e-commerce business in Saudi Arabia are committed to finishing all steps and approval processes on time without compromising quality.
With a global presence and a tailored approach, we ensure your business setup is handled precisely and professionally.
