UAE online buyers spend the most per purchase worldwide – KPMG

UAE online shoppers spend the highest amount per purchase globally, a new survey by KPMG has found.

Online buyers from the Emirates spend $332 per purchase on average, compared to the global spend of $190, and $164 in Africa and the Middle East.

However, UAE consumers shop less frequently online – a little less than 10 purchases online in a year on an average, compared to the global average of around 17 transactions per annum. The average for Africa and Middle East is around 11 transactions per year, the report found.

The survey also found that UAE consumers tend to take longer to make purchases, with many respondents preferring to use smartphones. Top categories included accessories, electronics, phones, women’s apparel and perfumes.

Up to 58 per cent of the products purchased online by UAE consumers were sourced from outside the region, with 80 per cent of that coming from Asia, North America and Western Europe.

“This would indicate that there could be considerable online opportunities for local retailers,” the report stated.

Cash on delivery is one of the more popular modes of payment for UAE consumers, who also tend to be more brand aware, KPMG said.

Respondents from the country (at 45 per cent) were also more likely to share their feedback online after buying something, against a global average of 31 per cent.

“Today’s consumer no longer goes shopping, but is shopping, all the time and everywhere,” said Anurag Bajpai, a partner with KPMG and the head of Retail in the UAE and Oman.

“They can now buy from any retailer or manufacturer from anywhere in the world – even from retailers with no physical presence. Hence, creating an online shopping experience is becoming more vital – and more complex – every day.”

Globally, the main reason that consumers said they shop online is for the convenience of shopping at any hour on any day (cited by 58 per cent as a top reason).

This is followed by having the ability to compare prices (54 per cent), or to find better deals (46 per cent).

Consumers also said they chose the website with the lowest price they could find (57 per cent) followed by websites with enhanced delivery options (43 per cent) or easy return policies (40 per cent).

“As part of an integrated customer-centric business model, customers expect that goods can be delivered or picked up wherever they are located,” said Julio Hernandez, Global Customer lead at KPMG International.

“They want their orders consolidated, they want shipping bundled with service, and they want to be able to return things easily. In order to meet these growing demands, companies need either better distribution systems or partners that can do it better for them.”

The survey also found that while men and women shopped with about equal frequencies, on average, men spent more per transaction at $220 compared to $151 for women — on their most recent purchase.

“This can largely be attributed to the fact that the male consumers were more likely to buy items in higher priced categories such as luxury goods (55 per cent of luxury transactions were by men) or electronics (72 per cent of electronics transactions were by men), while women were more likely to buy in lower-priced categories such as cosmetics or food,” the report said.