The world of internet retailing continues to grow in Egypt in 2021, albeit at a much slower rate than last year. With COVID-19 affecting retailing across industries, it has benefitted e-commerce the most as consumers stuck in lockdown tried internet shopping for the first time.
Specialised marketplaces Jumia and Amazon continue to perform strongly in e-commerce in Egypt thanks to their wide product offerings and easy payment systems. Whilst both accept cash on delivery, both platforms are encouraging consumers to switch to digital payment methods that are more efficient and secure, in addition to carrying no risk of contagion.
The rise of local e-commerce platform Homzmart and its remarkable growth in a short period of time has changed the outlook for the e-commerce channel. The platform connects furniture designers and carpenters to consumers, making price ranges clear, and solving high distribution costs for retailers.
E-commerce will continue to expand rapidly during the forecast period as Egyptian consumers are becoming increasingly comfortable shopping online. This habit is likely to persist even as daily life begins to normalise in the aftermath of the pandemic.
The international brand Mothercare closed more than half its stores in Egypt in the late review period, leaving only three physical stores open. Alongside this, the brand launched its web-portal with the notion of transferring entirely to e-commerce within Egypt.
Over the forecast period the rise of e-commerce is expected to lead to new ways of business. For example, the Mall of Egypt by Majid Al Futtaim has recently introduced a new omnichannel shopping method.
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Sales of consumer goods to the general public via the Internet. Please note that this includes sales through mobile phones and tablets (i.e. m-commerce). E-commerce includes sales generated through pure e-commerce websites and through sites operated by store-based retailers. Sales data is attributed to the country where the consumer is based, rather than where the retailer is based. The definition of e-commerce is agnostic as to where actual payment takes place; if an order is initiated online, it is considered to be an e-commerce transaction, even if the order is ultimately paid for in-store (or elsewhere). As a result, all ‘click-and-collect’ and ‘collect-at-store’ transactions are counted as e-commerce sales. E-commerce excludes sales of: (a) Consumer-to-consumer (C2C) and business-to-business (B2B) sales, although please note that sales between businesses and consumers (i.e. B2C sales) on sites such as eBay are included; (b) Sales of motor vehicles, motorcycles and vehicle parts; (c) Tickets for events (sports, music concerts, etc.) and travel; (d) Sales of travel and holiday packages; (e) Revenue generated by online gambling sites; (f) Returned products/unpaid invoices; and (h) Internet sales from direct selling companies, as these are tracked in Direct Selling market size/shares. Example e-commerce brands include Amazon.com, Zappos.com, Apple.com, iTunes, Rakuten, Tesco.com, Dell.com, Coles Online, etc. 3rd Party Merchant sales through online marketplaces, such as Amazon.com, eBay.com and Walmart.com, are included and split out in shares. 3rd party merchants are the summation of sales that come from businesses that are present on an online marketplace (e.g. Amazon, Alibaba). Marketplaces are websites that allow multiple merchants to sell on the marketplace website, with the marketplace operator processing the transactions, but many marketplaces provide offer other services as to help with shipping, handling, payment, and product storage. The marketplace is not the merchant of record legally, but for the sake of shares, sales from 3rd part merchants are attributed to the marketplace brand operator.See All of Our Definitions
This report originates from Passport, our E-Commerce (Goods) research and analysis database.
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