Proceedings of the 4th Asia Pacific Conference on Industrial Engineering and Operations Management

Ho Chi Minh City, Vietnam, September 12-14, 2023

Unveiling the Growth of E-commerce in Saudi Arabia and its Impact on Supply Chain Management

Abobakr Badahman

Supply Chain Management Department, College of Business Administration, University of Business and Technology, Jeddah 21448, Saudi Arabia

Hasan Balfaqih

Operations and Supply Chain Management Department, College of Business, Effat University, Jeddah, 21478 Saudi Arabia

vam819@st.ubt.edu.sa, hbalfaqih@effatuniversity.edu.sa

Abstract

The outbreak of COVID-19 has caused an unexpected surge in online shopping, resulting in a higher growth rate than initially anticipated. From 2020 to 2022, there has been an additional 10% increase in growth, and from 2023 to 2025, there is projected to be an additional 3% increase, leading to a market worth $50 billion by the end of 2025. The pandemic has prompted numerous businesses to enter the e-commerce market, which is predicted to dominate 80% of the retail sector by 2030. The global changes in consumer behavior due to COVID-19 have accelerated the dominance of e-commerce in the retail industry. This study aims to examine the impact of the COVID-19 crisis on the electronic market in Saudi Arabia. A literature review was conducted, and survey questionnaires were distributed, collected, and analyzed using statistical techniques. E-commerce companies have implemented various consumer-friendly features to attract more customers, including diverse product ranges, customer ratings and reviews, discounted deals, affordable delivery options, free exchanges and returns, competitive pricing, and 24/7 availability. The strong purchasing power driven by high per capita income, improved logistics networks, and increasing internet penetration are the primary factors contributing to the growth of e-commerce in Saudi Arabia.

Keywords

E-commerce, Retail, Supply Chain, Online consumersand Saudi Arabia.

© IEOM Society International

Abobakr Badahman

Affiliation

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Unveiling the Growth of E-commerce in Saudi Arabia and its Impact on Supply Chain Management