New FedEx Research Shows E-commerce Opportunities Set to Grow for SMEs Under ‘New Normal’
The FedEx survey, focused on key markets across Asia, shows similar trends in the MENA region.
The latest e-commerce trends from research commissioned by FedEx Express, a subsidiary of FedEx Corp., in some of the most prominent markets in its Asia Pacific, Middle East and Africa (AMEA) region shows that both small and medium sized enterprises (SMEs) and consumers agree that there’s room for further growth in the already booming e-commerce sector.
The What’s Next in E-Commerce survey polled SMEs and consumers in 11 AMEA markets in July 2022 to explore the continuing evolution of e-commerce in the region and identify the trends that could fuel their future growth.
The survey reveals that consumers are looking for innovations in personalization, shoppertainment, and payment options that enhance their experience and at the same time, make it easier to discover new brands and make purchasing convenient. And with plenty of shopping festivals already on the calendar, consumers are looking for even more seasonal offers. Taken together, the research shows there is plenty of fertile ground for e-tailers to experiment with new approaches that can help build their customer base.
“COVID has accelerated our lifestyles to a pivot point where shopping online has been normalized across all demographics, and there’s no going back. With that, e-commerce is set to take a growing proportion of total consumer spend,” said Kawal Preet, president of the Asia Pacific, Middle East and Africa (AMEA) at FedEx Express, in a statement. “With more people shopping online, consumer preferences are becoming increasingly sophisticated. As SMEs and e-merchants evolve their online sales platforms, our research uncovers opportunities for businesses to capitalize on what consumers want. Customer experience is the driving force behind how e-tailers engage with their customers and how we are innovating our shipping solutions. With an expanded portfolio specially developed for e-commerce businesses, FedEx is well positioned to support the changing expectations of consumers and the continuation of e-commerce growth.”
E-commerce sector matures with further growth ahead
Asia Pacific, which includes the world’s biggest e-commerce markets like India, Mainland China, Japan, and Korea, will witness revenue from e-commerce sales to reach $2.09 trillion this year, as 57% of the region’s population shops online. In the Middle East and North Africa (MENA) region, e-commerce is catching up fast with these global powerhouses, where the sector is growing slightly ahead of the global average at 25%, and is expected to reach a value of $8 billion by 2025.
With the rapid growth of the e-commerce sector within the MENA region, and Dubai being placed at the center of trade relations between the East and the West, earlier this year, FedEx Express broke ground on a new regional air and ground hub near Al Maktoum International Airport (DWC) at Dubai South’s Logistics District. With completion earmarked for 2023, the new FedEx Express regional hub will support improved efficiencies across both its regional and global networks and expand the company’s commercial and operational footprint to support the growth of e-commerce and trade.
Logistics providers are here to support
FedEx is supporting the future growth of e-commerce across AMEA with a dual focus on meeting the needs of e-tailers and their end consumers. For e-tailers, FedEx provides simple, streamlined solutions which make order fulfillment easier. While for the end-consumer the priority is to provide speedy, reliable, trackable delivery, that enhances overall service experience.
FedEx is integrating its services with e-commerce marketplaces so e-tailers can generate FedEx shipping labels and use additional FedEx features, such as Express Shipping Services and International Shipping Documentation Service, without leaving the platforms. Easy to use, friction-free services like these make it easy to onboard new staff and help improve the work experience. And, delivery customization solutions like FedEx Delivery Manager allows e-tailers to offer their customers the personalized service and the freedom to manage and control their shipping preferences, which today’s consumer demands.
