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Aramex eTrends in the Middle East 2015

Omar Kassim
March 08, 2016

Aramex eTrends in the Middle East 2015

Aramex eTrends in the Middle East 2015 by Iyad Kamal. Delivered at ArabNet 2015 in Dubai.

Omar Kassim

March 08, 2016
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  1. OF AGE COMPRISE ABOUT MENA POPULA TION 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 POTENTIAL eBUSINESS TRENDS
  2. 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
  3. 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
  4. SHOES APPAREL BEAUTY SUPPLIES BOOKS/BAGS 20% 19% 19% 2013 2014

    BEAUTY SUPPLIES APPAREL SHOES TOOLS Source: Aramex Shop&Ship Data WHAT DO PEOPLE BUY eBUSINESS TRENDS
  5. 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
  6. 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
  7. WHO PAYS ONLINE (SHIPPING) MORE Source: Aramex Shop & Ship

    Data 36% 26% 24% 23% UAE BAHRAIN LEBANON QATAR SAUDI ARABIA 22% OPS, PAYMENT & RETURNS
  8. 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
  9. LAST MILE PAYMENT CONVERGANCE Source: Aramex Shop & Ship Data

    COD becoming POD With SADAD and mobile payment devices with couriers OPS, PAYMENT & RETURNS
  10. MENA LOGISTICS RETURNS Source: Aramex eCommerce Data Payment 2012 2013

    2014 COD 24% 21% 19% Credit Card 7% 7% 8%  OPS, PAYMENT & RETURNS
  11. TOP RETURN REASONS Source: Aramex eCommerce Data No response 42%

    Bad address 13% Client not available 10% OPS, PAYMENT & RETURNS
  12. 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
  13. GROWTH OF PICKUPS Source: Aramex eCommerce Data 17% from service

    centers as more pick up points become available OPS, PAYMENT & RETURNS
  14. MYADDRESS RESPONSE RATES Source: Aramex Operations Data 50% Saudi: 25%

    UAE: 31% direct impact on call center! OPS, PAYMENT & RETURNS
  15. 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
  16. CUSTOMER SERVICE REQUESTS? Source: Aramex Social Media Data 58% 78%

    68% 94% 2013 2014 SM a main customer service channel! SOCIAL TRENDS
  17. 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
  18. 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
  19. 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
  20. 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