How Dubai CommerCity has become a one-stop-shop platform for e-commerce businesses
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How Dubai CommerCity has become a one-stop-shop platform for e-commerce businesses

How Dubai CommerCity has become a one-stop-shop platform for e-commerce businesses

The region’s e-commerce market is experiencing a staggering growth of 18.4 per cent CAGR, says Dubai CommerCity board member Amna Lootah

Amna Lootah

How has the UAE’s e-commerce landscape altered since the onset of the Covid-19 pandemic?
With the onset of Covid-19, countries in the region are expediting the use of a diverse range of technology platforms, accommodating greater collaboration across geographies, and developing e-commerce initiatives and infrastructure. According to our MEASA E-Commerce Landscape: B2C Products Edition report, the MEASA e-commerce landscape is currently valued at $89.4bn with the UAE leading many e-commerce related rankings regionally and globally, including the highest global internet penetration at 99 per cent and securing the 13th position out of 99 countries for ease of starting an online business.

Consumer behaviour has also changed for a large section of the population as Covid-19 provided an ideal opportunity to re-evaluate current lifestyle choices. As such, there has been an increased preference for online shopping. Our report also highlighted that internet shoppers per capita are highest in the Middle East, with the UAE leading at 59 per cent.

Spurred by the impact of the pandemic, the region’s e-commerce market is experiencing a staggering growth of 18.4 per cent CAGR, higher than the global 16.6 per cent growth over the 2019-22 forecasted period, which represents a big opportunity.

How has last-mile delivery progressed in the past few years?
In the past few years, last-mile delivery has gone through a lot of changes due to adoption of technology and changing consumer behaviour. Providers have options to implement cost-effective solutions at a faster pace which has not only unlocked new potential streams, but also resulted in changing competitive dynamics.
The pandemic has further required businesses to improve the ways final delivery is made to consumers, with the need to adhere to social guidelines and new safety protocols.

Contactless delivery, track and trace options, and fast and cost-effective solutions for last-mile delivery have since surfaced to accommodate shifting consumer preferences. Customers are eager to have shorter delivery windows and prefer greater visibility as to when a delivery is expected. These newly adopted delivery habits put excessive strain on the couriers, and for many businesses, it has become a trend to move away from in-house personalised deliveries to larger third-party logistics (3PL) businesses. By outsourcing of e-commerce logistics processes to a third-party business, companies and consumers are benefiting from greater consolidation and cost efficiency benefits.

Which sustainability measures do e-commerce players need to adopt?
The growth of the e-commerce industry and surge in online shopping can have adverse environmental implications if sustainable practices are not adopted. Some strategies including courier route planning, use of efficient and zero-emission transport modes, and adoption of digital technology can address some of the air pollution, traffic congestion scale and urban density challenges.

At Dubai CommerCity, we are committed to adhering to UAE’s sustainability goals. As such, we lower our electricity consumption by using solar energy and reduce water wastage by 40 per cent through the treatment of polluted water and the collection and reuse of rainwater in addition to rooftop photovoltaic solar panels to generate clean energy. Our strategies also include the implementation of global environmental standards for the construction of light industrial units and buildings, as well as the use of environmentally friendly building materials and recycled resources.

How does Dubai CommerCity facilitate e-commerce businesses?
At Dubai CommerCity, we provide a unique e-commerce ecosystem and comprehensive e-commerce solutions for businesses to run effectively and seamlessly. We also offer strategy consulting, guidance on e-commerce regulations in the region, end-to-end logistics solutions inclusive of warehousing and last-mile delivery, complete e-commerce platform solutions, digital marketing services and other support services. In addition, we offer complete business setup and customs support, recruitment support and fulfilment centres.
All in all, Dubai CommerCity is the leading e-commerce enabler facilitating businesses to capture the exponential e-commerce growth opportunities in the MENA region. It follows an all-under-one-roof approach offering a truly complete turnkey solution to create the perfect e-commerce ecosystem in which businesses can thrive, investing further into their growth and progress.

What are your future plans?
To support the UAE’s industrial strategy ‘Operation 300bn’, Dubai CommerCity is facilitating regional and international businesses by providing a unique e-commerce ecosystem. We are providing a platform – both for international players to bring their products into UAE and be closer to their consumers and serve a wider audience – and for local companies to expand and grow their businesses.

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