Analysis on the Rise and Market Opportunities of Amazon Middle East Station
Amazon Middle East Station, as an emerging blue ocean in the global e-commerce market, is gradually attracting many keen business diggers. Since Amazon acquired Souq, the largest e-commerce platform in the Middle East, for US$765 million in 2017, it has started its layout in the Middle East market. In 2019, Amazon Middle East Station (AMAZONAE) was officially launched, and Souq was transformed into the Amazon platform in the United Arab Emirates.
Climate conditions and cultural differences in the Middle East significantly affect consumption habits. Local consumers mainly prefer summer clothes, and swimwear products occupy an important position in the market. In addition, local people prefer green, white, and golden colors that give a sense of luxury in their dressing styles. The number 5 is regarded as an auspicious number, while the number 7 symbolizes perfection and completeness. It is worth noting that the e-commerce peak season in the Middle East is usually concentrated in the early days of Ramadan (June and July), when people focus on home decoration and new clothes purchases.
In terms of market coverage, the influence of Amazon’s Middle East station has gradually expanded, covering countries such as the United Arab Emirates and Saudi Arabia. According to statistics, online retail in the UAE accounts for 4.2% of total retail sales, while in Saudi Arabia it is 3.8%. Both are lower than the global average of 10%, showing the region’s huge potential in the field of e-commerce. Amazon’s Middle East station has a considerable market share, with more than 45 million monthly visits, and has a self-built logistics company that can achieve last-mile delivery.
As the largest e-commerce website in the Middle East, Amazon Middle East provides sellers with extensive market support and diversified tools to help them operate stably on the platform. Sellers can use a variety of marketing tools, such as product lists, A+ page functions, on-site promotions (such as shop-killing and flash sale promotions), etc., to increase sales and exposure. In addition, the platform also regularly holds promotional activities, combined with unique festivals in the Middle East, to further attract consumers’ attention.
In terms of logistics, Amazon Middle East Station has implemented Amazon Logistics (FBA) services to provide comprehensive logistics solutions, including order sorting, packaging, distribution and after-sales services, to achieve the goal of same-day delivery and greatly reduce the cost of delivery. This reduces the seller’s labor and cost burden in logistics. For sellers who need to fulfill compliance responsibilities, such as registering for value-added tax (VAT) in the United Arab Emirates, the Amazon platform also provides support and can assist in completing compliance registration through service providers.
In short, as Amazon’s Middle East station gradually deepens in the local market, its comprehensive resources and support will provide sellers with more business opportunities and development space. Overall, the Middle East market is destined to usher in more growth opportunities as Amazon further expands.