Ecommerce is booming all over the world, but nowhere more so than the Middle East. Even before the pandemic, ecommerce adoption in the region was rising rapidly, spurred on by digitally-savvy, smart-phone-wielding consumers in markets like the UAE and Saudi Arabia.
Fast-forward to 2020 and Statistica has valued the Middle Eastern ecommerce market at $17 billion, and predicted it will reach $27 billion by 2025. What’s more, McKinsey has noted that consumers there are more optimistic in the medium term than their peers in other regions3.
For retailers planning their expansion into this exciting market, it’s not always easy to know which carrier to rely on for best-in-class delivery service. Many end up getting sold costly express services even though local carriers have evolved to match these services — often with much more cost-effective price tags.
Metapack integrates with the largest global network of carriers and shipping services, so we’re in a unique position to recommend the best-performing carriers in particular geographical areas. Take APG eCommerce Services for example, a leading provider of cross-border ecommerce delivery solutions which has been part of Metapack’s network for over seven years. The group has built up an extensive network of delivery services that is perfectly suited to the specific needs of consumers in the region.
Extensive PUDO network in Israel
In Israel, 80% of consumers use pick up points to collect their ecommerce orders. PUDOs have grown rapidly in the region, but not always with the right distribution or technology. But thanks to APG’s extensive and well-positioned PUDO and locker network, items they deliver get collected by consumers only one day after delivery on average. In fact, 50% of APG customers collect their parcel at a PUDO location within 90 minutes from receiving an SMS notification.
More convenient home delivery in Saudi Arabia
In Saudi Arabia, deliveries have traditionally been made to PO boxes or other delivery points, often miles away from consumers’ homes. However, APG is now working to make delivery more convenient by driving up the proportion of first-time deliveries. The group achieves 70% first time delivery in Saudi Arabia, compared to the typical 55% managed by other carriers.
Successful delivery first time in UAE
In the UAE, the region’s rapid expansion and complex administrative structure has made it a challenging location for home delivery. But not for APG, as it uses the largest final mile delivery network in the UAE. The group is also making use of Metapack’s enablement of what3words to ensure successful first-time delivery in UAE, as well as the entire MENA region.
Discover the steps top retailers are taking to seize the cross-border opportunity in the International Ecommerce Expansion Playbook.