eCommerce in Egypt Market and Challenges
The story of eCommerce started in 1994 with a small website for selling books online called amazon.com; Amazon now is the largest eCommerce website in the world with over 355 Billion dollar market value. The rise of eCommerce signals a very important indication, which is the death of traditional retail as we can see here the difference between 2006 and 2016 in the market value of famous American Retailers that shrank over 90% in value. In Egypt, we can see all brick and mortar retailers started to provide the Delivery option, and some like carrefour developed an eCommerce app to create a full omnichannel retailing service. “There is a lot of potential in the e-commerce market in Egypt. It is a large country with a huge population and a lot of untapped resources.” Alia el-Mahdy, Professor of Economics at Cairo University, said to eshopworld.
To some, eCommerce is considered a solution for Egypt’s current recession phase. As the multiple online platforms, the likes of Facebook, Google, and others grow larger; the size of its markets grow
According to PayFort’s report “In 2016, the number of online buyers in Egypt continued to grow to reach a total of 17.7 million users. The growing number of online buyers is helping to expand online shopping in Egypt and is expected to have a positive impact on eCommerce in general across the country.”
the top shopping categories for Egypt were Mobile Phones and Paying utilities bills and Laptops while the least popular were Bags, Home appliances, and Other.
What makes an eCommerce website
eCommerce definition is “the act of buying or selling of products on online services or over the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.”
eCommerce Challenges in Egypt
The challenges facing eCommerce in Egypt vary between design, development costs, and the trust of customers to purchase online. All challenges round up to the customer’s trust to purchase.
A good Design
The first challenge is the design which one of the main elements that affect the customer’s decision to purchase. Good design reflects the professionalism of the organization driving more conversions impacting the organization positively that even if the customers are not going to buy from the website they are going to get enough info regarding phone numbers, locations, etc..
The second challenge is to find the best eCommerce website development company in Egypt. As there are a minimum number of website development companies in Egypt that are capable of developing a simple and easy back-end that a client can easily manage and provide the products and services. Also, the engine that drives the eCommerce website is a huge challenge that faces eCommerce development in Egypt. It is an essential task to find the right agency to develop your eCommerce website that has enough experience to create an eCommerce website. This element affects the online customer when purchasing as the customer can get insecure when he finds problems during his purchasing experience.
eCommerce Development Costs and Timeframe
The third challenge is the cost of developing and designing an eCommerce website in Egypt. The costs vary between 50,000 EGP to 150,000 EGP if not more. The problem with the high cost is that some agencies when they acquire a new client that wants to develop an eCommerce website are the fact that an eCommerce project takes a huge timeframe which costs an agency a lot.
The fourth and main element that impacts customers’ trust is the online payment, which drives eCommerce websites in Egypt to create multiple payments methods. These methods vary between cash on delivery, Fawry, and network carriers payments like Vodafone cash, Etisalat cash, etc...
These payment methods gave the Egyptian online consumer enough trust to buy products and services online and gave a boost to the online payment through eCommerce websites.