Insights
Industry
People
Culture
Brand Studio
Facebook Hub
Choueiri Group Deep Dives
OMD Corner
LEAD with ABG
Insights
Brand Studio
Facebook Hub
Choueiri Group Deep Dives
OMD Corner
LEAD with ABG
ABOUT US
CONTACT US
ADVERTISE WITH US
Insights Industry
Back
Souq has Amazon and now noon has eBay. But, what does it all mean for the regional e-commerce industry?
By Communicate StaffTue, Jun 12 2018

Contact
souq-has-amazon-and-now-noon-has-ebay-but-what-does-it-all-mean-for-the-regional-e-commerce-industry

A year after what Goldman Sachs labeled the “the biggest M&A deal in the Arab World” i.e. the Amazon/Souq deal, Noon has announced its strategic partnership with US-based online auction platform eBay.

About the deal

The e-commerce platform, which saw a major investment from Alshaya late last year, will now fulfill eBay orders made on its platform.

This provides customers in the region access to products that they wouldn’t have been able to otherwise buy, says Noon founder Mohamed Alabbar in a statement.

“Our partnership with eBay opens a whole new world of shopping experience,” he adds.

The agreement will come into effect in the second half of 2018 when consumers in the UAE and Saudi Arabia will be able to buy eBay products directly on noon. All products can be returned to noon for refunds, subject to terms and conditions, of course.

EXCLUSIVE: Q&A with Publicis Media’s Alex Saber on data, Marcel and the future of agencies

This is a big – and important – move for noon as 41 percent of GCC millennials shop on international sites according to a YouGov 2017 study.

[Tweet “41% GCC millennials shopping on international sites.”]

The two companies will also explore joint opportunities in marketing and best practices.

Commenting on the agreement, Waseem Afzal, general manager of OMD’s e-commerce arm, Transact, says, “As the industry matures, we are naturally seeing a lot of focus in enhancing online supply across all players because this area alone is a single biggest driver of growth.”

Saving grace?

Since its announcement in 2016, Noon has had a bumpy ride. It missed its scheduled launch of early 2017 and saw several management changes finally launching in September 2017 in the UAE and December 2017 in Saudi Arabia.

However, online reviews suggest that noon offers a better customer experience that Souq. The only gripe has been the variety, which noon lacks. But, that is set to change with the eBay partnership.

“Noon will aim to build on its partnership with Alshaya Group and further drive momentum with eBay’s product and tech infrastructure moving forward,” adds Afzal.

MUST READ: 4 reasons why marketers need to hit “Start” on gaming

Even before the eBay agreement, noon’s founder Alabbar has explicitly expressed his interest in e-commerce, which is expected to grow to $20 billion by 2020 in the GCC, according to AT Kearney.

[Tweet “GCC e-commerce industry expected to grow to $20 billion by 2020.”]

Emaar Malls Group, a unit of Emaar Properties, bought a 51 percent stake in Namshi last year, while noon bought over JadoPado.

E-commerce in the region

“The pure play e-commerce companies are very much driving the industry forward,” says Afzal. This will naturally increase the pressure on local retailers to enhance their e-commerce offering whether it’s through their own platforms or presence on marketplaces.

Local retailers have, however, stepped up with many launching their own portals. In fact, a 2017 study by Bain & Company found that there has been a 31 percent increase in brand’s own e-commerce websites and a 39 percent increase in e-tailers since 2016.

MUST READ: Why you need to invest in audio ads 

Although adoption of e-commerce has been relatively slow in the region, a 2017 KPMG report finds that despite the lower frequency of UAE residents shopping online, they have the highest average ticket size globally ($332/purchase).

[Tweet “UAE shoppers have the largest ticket size globally at $332 per purchase.”]

And with increased investment from pure players as well as individual brands, it won’t be long before the burgeoning industry reaches global market standards. As Afzal says, “There are four forces championing change: the emergence of Chinese-based horizontal marketplaces, Amazon & Souq, traditional omnichannel regional retailers and now noon‘s partnership with eBay.  They are combining well to further accelerate adoption of e-commerce from consumers.”

RELATED TOPICS
Advertising-Dubai E-Commerce Ebay Noon Souq
MORE IN Industry
Industry
November 01, 2020 How to Build a Winning Gen Z Strategy on Mobile

App analytics and market data company, App Annie, have released a new report that sheds light on Gen Z’s mobile behavior, in order to help marketers develop effective strategies to reach them. 98% of Gen Z report owning a smartphone, on average receiving their first at the age of 10. They are also part of […]

Industry
October 28, 2020 Micro-Influencers Are Still an Important Channel in the Marketing Funnel

Experticity, the world’s largest community of influential category experts have released a new study that sheds new light on the importance of micro-influencers on the average consumer. The study was conducted with online interviews of more than 6,000 individuals from the United States drawn from Experticity’s micro-influencer network and the general population. In addition, more […]

Industry
October 28, 2020 Global Media Insight Report Provides Concise Picture of Media Trends in UAE & KSA

Market research companies eMarketer and Global Web Index have collaborated together to release the 10th edition of the global media intelligence report. The report is a detailed compilation of data and insights about internet users’ traditional and digital media usage in 42 key markets worldwide. Communicate will be highlighting the key trends that are shaping the […]

Industry
October 27, 2020 Socialbaker’s New Report Highlights Slow Return to Normalcy in Digital Space

Social Bakers, a global AI-powered social media marketing company has released the Q3 edition of their social media trends report. The report reveals where the industry is currently standing with regard to spending and engagement globally. Here are the key findings – ADVERTISING Worldwide ad spend increased by 56.4% in Q3 compared to where it […]

Subscribe to

our newsletter.

This site uses cookies: Find out more.

Logo
  • Insights
  • Industry
  • People
  • Culture
  • Brand Studio
  • Facebook Hub
  • Choueiri Group Deep Dives
  • OMD Corner
  • LEAD with ABG
  • About Us
  • Contact Us
  • Advertise With Us
  • Privacy Policy
  • Disclaimer
NEWSLETTER

Get a monthly round-up of Communicate's best insights

© 2020 communicateonline.me
About Us
Contact Us
Advertise With Us
Privacy Policy
Disclaimer
icon
icon
icon
icon
icon
© 2020 communicateonline.me