More Than $3.8 Trillion in Value of B2C E-Commerce Transactions

A specialized e-commerce report issued by the Communications and Information Technology Commission stated that e-commerce markets have achieved rapid growth supported by the increasing shift from traditional shopping to online and mobile shopping, and experts attributed this growth to the increasing rate of internet penetration, the growing use of smartphones, the growing support from governments and decision-makers, and the development of electronic payment systems and shipping and delivery services. This accelerating shift has led to notable growth in online spending, with the value of business-to-consumer (B2C) e-commerce transactions exceeding $3.8 trillion in 2016.

The report noted that e-commerce markets in the Middle East, North Africa, Central Europe, and India represent 2.5% of global e-commerce spending and constitute enormous potential for e-commerce growth. The report stated that investments by international companies have contributed to the field of e-commerce, and the presence of a fast-growing sector of venture capital funds and entrepreneurs has contributed to the emergence of a number of rising e-commerce markets.

The report stated that the doubling of global internet penetration and the demand for internet-based services, the ability of e-commerce companies to provide services and goods customized to customers' personal needs, growth in e-commerce investments, market-disrupting payment innovations, and improvements in logistics and delivery services are among the main drivers of the global e-commerce sector.

The report predicted that the number of internet users worldwide would rise from 3.2 billion (a global penetration rate of 43% of the world's total population) to 3.8 billion users by 2020, meaning the global penetration rate would rise to 49%. More than $106 billion has also been invested in technology and e-commerce companies since 2012.

The Communications and Information Technology Commission's report noted that emerging economies such as China and India are witnessing unprecedented growth in e-commerce, with China representing the largest e-commerce market globally, its share of global e-commerce spending exceeding 33% in 2015, compared to its 5.9% share in 2014.

The report attributed the accelerating growth of the e-commerce sector in emerging economies to the growth in the number of internet users, with 1.14 billion people in China over the age of 15, and more than 583 million internet users (an internet penetration rate of 51%), in addition to 400 million online shoppers. It also attributed it to the rise of digital payments, the expansion of logistics capabilities, and investments by global e-commerce giants. The study also emphasized the importance of continuous innovation in e-commerce products, services, and business models through new business models such as "online to offline" (O2O) and "group buying," from electronic and traditional channels in order to achieve broader interaction with consumers, as well as the use of artificial intelligence, and providing new shopping experiences for consumers to attract online shoppers.

It is noted that the Communications and Information Technology Commission will hold its 2017 annual forum titled "E-Commerce in the Kingdom of Saudi Arabia" the day after tomorrow, Tuesday 25 Safar 1439H corresponding to November 14, 2017, at the Commission's main headquarters in the Al-Nakheel district of Riyadh at nine in the morning, with the participation of the Ministry of Commerce and Investment, the Saudi Arabian Monetary Agency, the Saudi Post Corporation, the General Authority for Small and Medium Enterprises, e-commerce experts, investors in this field, logistics service providers, payment providers, and a number of those interested in the field of communications and information services. The forum aims to provide a comprehensive view of the local, regional, and global status of e-commerce through dialogue sessions with specialists, and to enhance awareness of its benefits in the Kingdom, and review its economic and social impact. Last week, the Commission invited all specialists and those interested in the field of e-commerce to attend and register through its website (www.ictforum.sa).