Souq.com hopes to make online shopping faster as the internet retailer is adopting a new platform and delivery system similar to that used by the US online giant Amazon.
Souq.com, which has its headquarters in the UAE but sells hundreds of thousands of items to nearby countries including Saudi Arabia, Kuwait and Jordan, says it is launching an online platform next month while fast-tracking delivery up from an average of three to five days.
"We're working [hard] to cut that … to make it two days," said Ronaldo Mouchawar, the chief executive.
When the retailer started up in this region it initially focused on promoting an eBay-like business model in which goods could be auctioned to the highest bidder. But as shopping habits changed, Souq.com started setting fixed prices last year and let businesses ship goods once shoppers made their purchases.
More recently, it has been investing undisclosed sums in warehousing goods in the UAE, Saudi Arabia and Kuwait, as well as new technology and employees to manage the logistics side of its business.
These warehouses are now key to the company's strategy for slashing shipping time, which mirrors an approach taken by Amazon.
A warehouse is planned to open during this quarter in Egypt. "We're working on Cairo," Mr Mouchawar said.
"The Dubai one is operational, fully, shipping hundreds of thousands of products a month. Same with Riyadh."
Shoppers in the Emirates spent an estimated US$2.8 billion (Dh10.28bn) on products and services that were purchased online last year, according to data from Visa Middle East in partnership with IMRG, an independent researcher.
Visa forecasts a 40 per cent rise in e-commerce spending this year, although Mr Mouchawar says sales at Souq.com have approximately tripled so far this quarter compared with the same period a year ago.
More online retailers are trying to expand their presence in the UAE, and sometimes the wider Middle East region.
These retailers include Nahel.com, JadoPado.com, ALshop.com and EmiratesAvenue.com.
To stand out from each other, these companies promote all sorts of offers, from bundled specials to "daily deals" with an emphasis on cash-on-delivery, for those consumers who are still hesitant about sharing their credit card details online.
Fast delivery has become another way to stand out from the pack.
But Mr Mouchawar noted that speedy shipping was not enough, which is why the company was also rolling out more product descriptions in Arabic, as well as more detailed specifications about devices such as BlackBerrys in case buyers forget to note all the particulars such as screen size, weight and keyboard type.
"We've invested over the last year in terms of improving what we call the content presentation," Mr Mouchawar said. "With this content investment [the shopping experience] will improve."
nparmar@thenational.ae
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