At Hinge, we are keeping your fingers on the Amazon Pulse with our latest article covering the e-commerce giant’s expansion into the UAE.
After Amazon’s acquisition of Souq.com for $580 million back in 2017, the e-commerce giant now redirects users on Souq to Amazon.ae in the United Arab Emirates (UAE). Though speculation regarding this change has been circulating these last few months, the official change took place on Tuesday. This will mark Amazon’s first officially branded Arabic website, hence the introduction of the Arabic language to the mobile app and website.
Now shoppers in the UAE will have access to United States sold items in addition to more payment options than previously offered through Souq. This change occurred just in time to offer special deals for Ramadan, which begins next week, to readily appeal to the new demographic and pull in sales.
Though Egypt and Saudi Arabia will continue to use the Souq platform, e-commerce in the region is poised for explosive growth. With $8.3 billion generated in online revenue in 2017 and an annual growth rate higher than the global average, that number is expected to triple with an estimated $28.5 billion by 2022.
Consistent numbers indicate steady annual growth by 25% every year since 2014. Amazon’s interest in regional expansion hardly comes as a surprise (especially when considering Amazon’s competitive strategy to contend with Chinese e-commerce platform, Alibaba). This move should squarely position Amazon to capitalize on the size of Amazon’s platform, products supplied, and customer base to challenge the China-based firm.
Get in touch with your new customer base in the UAE when you reach out to one of our Amazon selling experts, here.
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