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Arabnet 2015
Dubai
IYAD KAMAL
IYAD@ARAMEX.COM
IYAD KAMAL
@IYADKAM
Confidential
eBUSINESS TRENDS
OPS, PAYMENT & RETURNS
SOCIAL TRENDS
ALL NEW
Confidential
% 15
GLOBAL ECOMMERCE SALES?eBUSINESS TRENDS
Source: eMarketer
OF AGE COMPRISE ABOUT
MENA POPULATION
ONCE A
MONTH
43%
60% INTERNET USER IN THE GCC ARE MAKING ONLINE PURCHASES
25 YEARS
S...
Source: eMarketer
WHY DO PEOPLE BUY FROM ABROAD?
OPPORTUNITIES FOR REGIONAL ETAILER
eBUSINESS TRENDS
SNS, ecommerce; domestic, regional, international
ARAMEX SPECIFIC DATA!eBUSINESS TRENDS
Source: Aramex eCommerce Data
31%Saudi
94%
Saudi
29%Egypt Egypt
20%UAE UAE
14%UAE Saudi
Origin Destination % of total pack...
Source: Aramex eCommerce Data
Intra MENA $102
Into MENA $139
willing to pay more shipping
as variety has a price with duty...
SHOESAPPAREL BEAUTY SUPPLIES BOOKS/BAGS
20%
19%19%
2013
2014
BEAUTY SUPPLIESAPPAREL SHOESTOOLS
Source: Aramex Shop&Ship Da...
eBUSINESS TRENDS
OPS, PAYMENT & RETURNS
SOCIAL TRENDS
ALL NEW
Confidential
COD VS. CREDIT CARD PAYMENT
Source: Aramex eCommerce Data
Year Credit Card Cash on Delivery
2011 29% 71%
2012 29% 71%
2013...
PAYMENT MEANS USED
Source: Aramex Shop & Ship Data
2012 2013 2014
56% 52% 44%
35% 29% 23%
6% 16% 30%
3% 3% 3%
OPS, PAYMENT...
WHO PAYS ONLINE (SHIPPING) MORE
Source: Aramex Shop & Ship Data
36%
26%
24%
23%
UAE
BAHRAIN
LEBANON
QATAR
SAUDI ARABIA 22%...
AVERAGE DELIVERY ATTEMPTS
Source: Aramex Shop & Ship Data
9%
50%
20%
9%
25%Card: 1 1
COD: 1.88 1.50
2013 2014


OPS, PAY...
LAST MILE PAYMENT CONVERGANCE
Source: Aramex Shop & Ship Data
COD becoming POD
With SADAD and mobile payment devices with ...
MENA LOGISTICS RETURNS
Source: Aramex eCommerce Data
Payment 2012 2013 2014
COD 24% 21% 19%
Credit Card 7% 7% 8%

OPS, PA...
TOP RETURN REASONS
Source: Aramex eCommerce Data
No response 42%
Bad address 13%
Client not available 10%
OPS, PAYMENT &
R...
EUROPEAN LOGISTICS RETURNS
Source: Aramex eCommerce Data
Less
than 1%
Why?
- Orders are made with credit card
- Addresses ...
GROWTH OF PICKUPS
Source: Aramex eCommerce Data
17% from service
centersas more pick up points become available
OPS, PAYME...
MYADDRESS RESPONSE RATES
Source: Aramex Operations Data
50%
Saudi: 25%
UAE: 31%
direct impact on call center!
OPS, PAYMENT...
eBUSINESS TRENDS
OPS, PAYMENT & RETURNS
SOCIAL TRENDS
ALL NEW
Confidential
WHERE ARE THE REQUESTS COMING FROM?
Source: Aramex Social Media Data
9%
50%
20%
9%
25%
KSA 53%
KUWAIT 12%
UAE 10%
INDIA 9%...
CUSTOMER SERVICE REQUESTS?
Source: Aramex Social Media Data
58% 78%
68% 94%
2013
2014
SM a main customer service channel!
...
eBUSINESS TRENDS
PAYMENT & RETURNS
SOCIAL TRENDS
ALL NEW
Confidential
WHAT KEEPS US BUSY?
Simple: delivery on time and at an affordable price
ALL NEW
FURTHER CONNECTING WITH THE CLIENT
Client Courier
Objectives:
- Satisfied
- Delivery on time
- Affordable price
Objectives...
ARAMEX KEY INVESTMENT AREA!
Why?
- Mobile is your address!
- C2C communication, bypass the
CC
- Live tracking and avoid ca...
LAST MILE SOLUTIONS / LAST MILE TO LOCKERS
NEVER MISS A DELIVERY AGAIN!
- Available 24/7
- 100% safe & secure
- Quick, sim...
Announcement!
OUR NEW OFFERING to grow the industry…
eCommerce Package
o Classify clients by shipping tiers
o Provide shipping rates bas...
Thank You
IYAD KAMAL
IYAD@ARAMEX.COM
IYAD KAMAL
@IYADKAM
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The State of eCommerce by Aramex; ArabNet Digital Summit 2015

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Iyad Kamal, Aramex COO delivers his annual e-trends report on ecommerce growth drivers in the Middle East and shares his insights on online shopping and ecommerce transaction trends in the region.

Published in: Retail

The State of eCommerce by Aramex; ArabNet Digital Summit 2015

  1. 1. Arabnet 2015 Dubai IYAD KAMAL IYAD@ARAMEX.COM IYAD KAMAL @IYADKAM Confidential
  2. 2. eBUSINESS TRENDS OPS, PAYMENT & RETURNS SOCIAL TRENDS ALL NEW Confidential
  3. 3. % 15 GLOBAL ECOMMERCE SALES?eBUSINESS TRENDS Source: eMarketer
  4. 4. OF AGE COMPRISE ABOUT MENA POPULATION ONCE A MONTH 43% 60% INTERNET USER IN THE GCC ARE MAKING ONLINE PURCHASES 25 YEARS Source: Wamda - 25 Essential Stats on E-Commerce in the Middle East REGIONAL ECOMMERCE POTENTIALeBUSINESS TRENDS
  5. 5. Source: eMarketer WHY DO PEOPLE BUY FROM ABROAD? OPPORTUNITIES FOR REGIONAL ETAILER eBUSINESS TRENDS
  6. 6. SNS, ecommerce; domestic, regional, international ARAMEX SPECIFIC DATA!eBUSINESS TRENDS
  7. 7. Source: Aramex eCommerce Data 31%Saudi 94% Saudi 29%Egypt Egypt 20%UAE UAE 14%UAE Saudi Origin Destination % of total packages WHERE ARE THE REGIONAL ECOMMERCE VOLUMES COMING FROM? eBUSINESS TRENDS
  8. 8. Source: Aramex eCommerce Data Intra MENA $102 Into MENA $139 willing to pay more shipping as variety has a price with duty % being an advantage VALUE OF ORDER?eBUSINESS TRENDS
  9. 9. SHOESAPPAREL BEAUTY SUPPLIES BOOKS/BAGS 20% 19%19% 2013 2014 BEAUTY SUPPLIESAPPAREL SHOESTOOLS Source: Aramex Shop&Ship Data WHAT DO PEOPLE BUYeBUSINESS TRENDS
  10. 10. eBUSINESS TRENDS OPS, PAYMENT & RETURNS SOCIAL TRENDS ALL NEW Confidential
  11. 11. COD VS. CREDIT CARD PAYMENT Source: Aramex eCommerce Data Year Credit Card Cash on Delivery 2011 29% 71% 2012 29% 71% 2013 27% 73% 2014 24% 76% It is still a COD market and etailers promote it! Mainly domestic COD today but changing! GLOBAL ECOMMERCE SALES?OPS, PAYMENT & RETURNS
  12. 12. PAYMENT MEANS USED Source: Aramex Shop & Ship Data 2012 2013 2014 56% 52% 44% 35% 29% 23% 6% 16% 30% 3% 3% 3% OPS, PAYMENT & RETURNS
  13. 13. WHO PAYS ONLINE (SHIPPING) MORE Source: Aramex Shop & Ship Data 36% 26% 24% 23% UAE BAHRAIN LEBANON QATAR SAUDI ARABIA 22% OPS, PAYMENT & RETURNS
  14. 14. AVERAGE DELIVERY ATTEMPTS Source: Aramex Shop & Ship Data 9% 50% 20% 9% 25%Card: 1 1 COD: 1.88 1.50 2013 2014   OPS, PAYMENT & RETURNS
  15. 15. LAST MILE PAYMENT CONVERGANCE Source: Aramex Shop & Ship Data COD becoming POD With SADAD and mobile payment devices with couriers OPS, PAYMENT & RETURNS
  16. 16. MENA LOGISTICS RETURNS Source: Aramex eCommerce Data Payment 2012 2013 2014 COD 24% 21% 19% Credit Card 7% 7% 8%  OPS, PAYMENT & RETURNS
  17. 17. TOP RETURN REASONS Source: Aramex eCommerce Data No response 42% Bad address 13% Client not available 10% OPS, PAYMENT & RETURNS
  18. 18. EUROPEAN LOGISTICS RETURNS Source: Aramex eCommerce Data Less than 1% Why? - Orders are made with credit card - Addresses are correctly structured in Europe and customers provide accurate addresses including postcode - Carriers can leave at a safe place or deliver to a neighbor if the customer wasn’t available OPS, PAYMENT & RETURNS
  19. 19. GROWTH OF PICKUPS Source: Aramex eCommerce Data 17% from service centersas more pick up points become available OPS, PAYMENT & RETURNS
  20. 20. MYADDRESS RESPONSE RATES Source: Aramex Operations Data 50% Saudi: 25% UAE: 31% direct impact on call center! OPS, PAYMENT & RETURNS
  21. 21. eBUSINESS TRENDS OPS, PAYMENT & RETURNS SOCIAL TRENDS ALL NEW Confidential
  22. 22. WHERE ARE THE REQUESTS COMING FROM? Source: Aramex Social Media Data 9% 50% 20% 9% 25% KSA 53% KUWAIT 12% UAE 10% INDIA 9% EGYPT 5% QATAR 4% OTHER 9% 2013 2014 65% 5% 5% 4% 3% 14% 1% SOCIAL TRENDS
  23. 23. CUSTOMER SERVICE REQUESTS? Source: Aramex Social Media Data 58% 78% 68% 94% 2013 2014 SM a main customer service channel! SOCIAL TRENDS
  24. 24. eBUSINESS TRENDS PAYMENT & RETURNS SOCIAL TRENDS ALL NEW Confidential
  25. 25. WHAT KEEPS US BUSY? Simple: delivery on time and at an affordable price ALL NEW
  26. 26. FURTHER CONNECTING WITH THE CLIENT Client Courier Objectives: - Satisfied - Delivery on time - Affordable price Objectives: - Satisfied - Deliver on time - Affordable cost Focus: How to get them closer, physically and technically? (information and consistency) ALL NEW
  27. 27. ARAMEX KEY INVESTMENT AREA! Why? - Mobile is your address! - C2C communication, bypass the CC - Live tracking and avoid calls - Online payment, reduce cash management - Big data analysis: - Non payers - Not at home - Same address delivery, don’t call… TECHNOLOGY is making it happen (mobile in specific with more than 90% penetration) App App ALL NEW
  28. 28. LAST MILE SOLUTIONS / LAST MILE TO LOCKERS NEVER MISS A DELIVERY AGAIN! - Available 24/7 - 100% safe & secure - Quick, simple and fun - Cheapest delivery option ALL NEW
  29. 29. Announcement!
  30. 30. OUR NEW OFFERING to grow the industry… eCommerce Package o Classify clients by shipping tiers o Provide shipping rates based on tier volumes o Advance COD payment which equates to paying of COD amounts upon shipping o July 1st 2015
  31. 31. Thank You IYAD KAMAL IYAD@ARAMEX.COM IYAD KAMAL @IYADKAM

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