e-Commerce Market Analysis

The eCommerce market in Saudi Arabia

Saudi Arabia is the 26th largest market for eCommerce with a revenue of US$5 billion in 2019, placing it ahead of Finland and behind Thailand.

With an increase of 18%, the Saudi, Saudi Arabian eCommerce market contributed to the worldwide growth rate of 16% in 2019. Revenues for eCommerce continue to increase. New markets are emerging, and existing markets also have the potential for further development. Global growth will continue over the next few years. This will be propelled by East and Southeast Asia, with their expanding middle class and lagging offline shopping infrastructure.

The eCommerce market includes online sales of physical goods to a private end user (B2C). Included in this definition are purchases via computer as well as mobile purchases via smartphones and tablets. Excluded from the definition of ecommerceDB are the following: digitally distributed services (e.g., travel tickets), online stores dedicated to digital media downloads or streams, online stores dedicated to B2B markets, and sales between private individuals (C2C) within the eCommerce market.

The eCommerce market in Saudi Arabia

Top online stores

The biggest player in the Saudi, Saudi Arabian eCommerce Market is namshi.com. The store had a revenue of US$120 million in 2019. It is followed by souq.com with US$109 million revenue and jarir.com with US$81 million revenue.

Store rankings are based on every store that generates revenue in in Saudi Arabia. These stores can either have a national focus and only sell in their main country or operate on a global scale. For this evaluation, only revenue created in in Saudi Arabia was considered.

One of the fastest-growing stores in the Saudi, Saudi Arabian market is al-dawaa.com. The store achieved sales of about US$4.6 million in 2019. Its revenue growth amounted to 369% in the previous year.

Top online The eCommerce market stores in Saudi Arabia by eCommerce net sales 2019 in million US$ The table shows the stores that generate the highest revenue in the Saudi, Saudi Arabian market. For this evaluation, only revenue created in in Saudi Arabia was considered. Basis are all shops on eCommerceDB that operate in in Saudi Arabia.

# Store
1. souq.com US$123m
2. namshi.com US$120m
3. jarir.com US$81m
4. iherb.com US$41m
5. jollychic.com US$37m
The eCommerce market in Saudi Arabia

Market size and growth rate

Revenue in 2019
US$4,930m
REVENUE
CAGR 2019-2023
11%
CAGR

Digital Market Outlook by Statista

The Digital Market Outlook presents up-to-date figures on markets of the digital economy. The comparable key figures are based on extensive analyses of relevant indicators from the areas of society, economy, and technology.
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Market expansion in in Saudi Arabia is expected to continue over the next few years, as indicated by the Statista Digital Market Outlook. It has been predicted that the compound annual growth rate (CAGR 19-23) for the next four years will be 11%. Compared to the year-over-year growth of 18%, this decrease suggests a moderately flooded market. Another indicator of market saturation is the online penetration of 69% in in Saudi Arabia; in other words, 69% of the Saudi, Saudi Arabian population have bought at least one product online in 2019.

Five categories are considered by ecommerceDB. Fashion is the largest segment in in Saudi Arabia and accounts for 33% of the eCommerce revenue in in Saudi Arabia. This is followed by Electronics & Media with 32%, Food & Personal Care with 20%, Toys, Hobby & DIY with 10% and Furniture & Appliances with the remaining 5%.

The eCommerce market in Saudi Arabia

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