Four Factors Behind E-Commerce Fast Taking Over Traditional Retailers’ Territory

E-commerce is fast disrupting traditional trade and rapidly taking over conventional retailers’ territory. A fact which is driven by a set of factors, atop of which comes the rapidly changing consumer behaviour. Online browsing has made purchasing experience through various electronic platforms smoother and efficient. Unlike traditional business, a customer is able to window shop and decide about the products in only a few clicks.

The rapid access to information and products sits on top of these factors, which derives its strength from the quintessential nature of the Web, with traditional commerce evidently lagging behind.

The wide prevalence of Internet addiction plays a significant role as well in this respect, with the demographics of Internet and its access rates in the UAE alone surging to 99%, according to a recent specialised study which found out that more than 9 million people are using the Internet on a daily basis in the country.

People spending many hours a day using the Internet is another major factor driving them to browse various electronic platforms thoroughly. An estimated 93% of the UAE population alone is found to be using the Internet for an average of 8 hours per day.

While speaking of the steady growth in the e-commerce sector, it’s noteworthy to find out Saudi Arabia ranked among the top 10 countries in terms of the growth of e-commerce, with an impressive rate of 35% last year.

Therefore, Saudi Arabia is a vivid example of consumers increasingly turning to e-commerce and relying on the Internet of Things (IoT). The sharp rise in consumer-product diversity on e-commerce platforms is a third factor that strengthens online trade’s dominance over traditional commerce.

E-commerce provides more efficient marketing tools and smarter solutions than traditional commerce in addressing the needs of target segments. It also helps them monitor and analyse data to set a strategy to boost their marketing presence and sales.

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Finally, shopping and comparison pricing between products on electronic and traditional platforms is a fourth factor that may be the most important among all those mentioned above. Online platforms often outperform traditional retail outlets in terms of prices, providing more mouth-watering offers and discounts, which are much sought after by consumers.