Challenges of delivering parcels to the Middle East

The Middle East is an emerging market set to be a major e-commerce destination.

With high levels of internet penetration across the region (74%) and rising GDP, the e-commerce market in the Middle East has doubled in size over the last few years and continues to grow.

Any new market comes with initial challenges and, despite government investment into the e-commerce sector in many ME countries, online retailers may find the customs, culture and logistics of the region somewhat confusing. Asendia, with our local partner Oman Post, has the expertise to ensure your e-commerce logistics is fast and reliable, so you can focus on growing your business cross-border.

No postal codes

• Historically, the region has had no postal/area codes making home postal delivery a challenge. With start-ups and logistics services trialling using GPS on shoppers’ phones as a homing beacon for couriers, with the right partners local delivery is possible.

Cash on delivery (COD)

• Due to widespread lack of trust in digital payments, around 62% of e-commerce shoppers in the Middle East prefer COD as a payment method when buying online, which can lead to failed deliveries and higher returns rates for e-commerce businesses. However, mobile wallets and credit card payments are increasing in popularity as they become more secure.

Expensive delivery

• For some countries in the region, the average cost of package delivery is more than three times the global average for similar delivery times, preventing many Middle Eastern consumers from buying online. With the right logistics service, you can offer cost-effective delivery as an incentive for shoppers.