Dubai E-commerce 2017 – Cash on delivery holds back as electronic payments

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In Dubai, 56% of consumers shop online frequently, shopping at least once a week. Infrequent shoppers who shop online less than once a month have fallen from 20% to 10%. The average purchase price has also increased from $374 to $403, a significant increase. Incidentally, 20% of respondents spend a high average of $545 per order.

Souq.com has seen 50% year-on-year growth in online-only sales in the United Arab Emirates.

A study found that the only barriers to online spending were consumer concerns related to security of electronic payments and cash on delivery (where cash must be paid at the time of delivery).

Mohammed Ali, Chief Consumer Protection Officer at DED, Ministry of Economic Development, Dubai , said:

E-commerce in our country is growing rapidly... It is very important to let shoppers know that their online shopping experience is safe. With the ever-increasing amount of online spending, e-commerce will become even more popular if we can provide a safe online shopping experience and an environment backed by security and other technologies.

According to the survey, the percentage of respondents ukraine whatsapp data who chose cash on delivery has dropped to 22%, but most online retailers still say that 42% of their customers choose cash on delivery, meaning it is the payment method that guarantees receipt of the product.

According to Ulugbek Yuldashev, founder of Awok.com :

The Mena region has seen a dramatic increase in online orders paid by card. Card payment revenue has tripled and sales have increased by 30%. While card payments are on the rise, cash on delivery remains the most preferred payment method for online orders at 65%-70%. Awok.com encourages customers to switch to card payments whenever possible. The company has partnered with leading UAE banks to offer promotions such as discounts and 0% interest fees on credit card purchases to encourage customers to switch.


awok.com appears to carry some Japanese products as well.

Live Commerce Perspective
The Mena region is arguably the region with the most rapid e-commerce growth in 2017. If e-commerce becomes more active in cities like Dubai and is expected to continue to grow, it will encourage the entry of e-commerce sites from global brands, but with cash transactions such as cash on delivery accounting for 70% of all transactions, it may still be difficult for other regions to enter the market. I hope the Dubai government will work hard to help consumers quickly switch to card payments.