E-Commerce in Egypt

 E-commerce is the leading pillar of Egypt's ecosystem and it is growing even though it has struggled elsewhere on the internet. The e-commerce market is growing quickly in Egypt and worldwide, as the number of people who do online shopping reached about 1 billion in 2019.

It is 41.36 million people purchasing consumer goods via the internet in Egypt with an average spend of $79/year, this makes a $3.27 billion E-commerce continues to display strong growth in Egypt benefitting from the impact of COVID-19. The biggest factor propelling e-commerce growth in Egypt is the immense support granted by the Egyptian government to startups and e-commerce businesses.

The e-commerce market in Egypt

The e-commerce market in Egypt is growing rapidly, with a projected growth of 19.43% between 2020 and 2025. This growth is being driven by the increasing number of internet users in the country, as well as the continued impact of COVID-19.

The Egyptian market has the largest population of internet users in the MENA region, and this is expected to continue to grow in the coming years. This growth, combined with the continued impact of COVID-19, is expected to result in strong growth for the e-commerce market in Egypt.

The online shoppers in Egypt

The online shoppers in Egypt are a force to be reckoned with. In 2021, they are expected to spend $5.2 billion on eCommerce, making it the 39th largest market for eCommerce in the world. This is up from $3.27 billion in 2020, and it is only expected to grow. 

The reason for this growth is simple: social media. Social media has become the primary way that Egyptians discover new products and brands. It is also where they go to find reviews and recommendations from friends and family. This has made it easier than ever for online shoppers in Egypt to find what they are looking for, and has resulted in a boom in online sales.

The most popular e-commerce platforms in Egypt

The most popular e-commerce platforms in Egypt are souq.com, olx.com.eg, jumia.com.eg, and ubuy.com.eg. These platforms offer a wide variety of products and services that appeal to a broad range of customers. 

They are also convenient and easy to use, which makes them the perfect choice for busy shoppers who don’t have time to visit brick-and-mortar stores. In addition, these platforms offer competitive prices and often host sales and promotions that make them even more attractive to bargain hunters.

The payment methods used in Egyptian e-commerce

As of January 2021, cash was the most dominant payment method in Egypt, accounting for 60 percent of all online purchases. Cards are also extremely popular in Egypt, with most of the earning population having at least one credit card. However, Amazon Payment Services (APS) is perhaps the most widely used and popular Payment Gateway Solution in Egypt. This is because APS provides a wide range of services that are available in eight Middle Eastern countries. In addition, Paypel is the most popular payment method used in Egyptian e-commerce.

The delivery options available in Egypt

There are many different delivery options available in Egypt. You can choose from palletised shipping to dedicated courier services. There are also many different shipping options available at UPS. You can choose the service that best fits the needs of your business. FedEx also offers a variety of shipping services that can be tailored to your specific needs.

The most popular product categories purchased online in Egypt

Based on the displayed data, the most popular product categories purchased online by Egyptian consumers include electronics/gadgets, fashion, home, books and sports. Electronics & Media is the largest segment in Egypt and accounts for 26% of the eCommerce revenue in Egypt. Fashion, electronics, healthcare and groceries have seen the highest surge of online activity. Mobile phones were by far the most popular product among all internet users aged under 30.

The challenges faced by the e-commerce industry in Egypt

E-commerce in Egypt is currently facing a number of significant challenges that are impeding its growth and development. Firstly, there is a lack of legal recognition of e-commerce transactions, which creates uncertainty and discourages businesses from investing in this area. 

Secondly, the telecommunications infrastructure and services are not sufficiently developed to support e-commerce growth. Thirdly, the logistical and trade facilitation infrastructure is also not up to par, which makes it difficult for businesses to operate efficiently.

 Finally, the regulatory environment is also not conducive to e-commerce development, with a number of restrictions and red tape making it difficult for businesses to operate in this space. Overall, these challenges are hampering the development of e-commerce in Egypt and need to be addressed urgently if the country wants to reap the benefits of this growing industry.