E-commerce enterprises should improve ‘cash on delivery’ service — industry insiders

AMMAN — As the volume of e-commerce in the Middle East and North Africa region is expected to reach $15 billion in 2015, industry insiders on Thursday called for understanding the needs of online shoppers to increase growth in the sector.

In the MENA region, home to more than 110 million Internet users, the potential for e-commerce remains huge, experts said during a session on e-Commerce at the MENA ICT Forum in the capital, which concluded Thursday.

Online stores need to focus on providing customers with an “excellent” experience, especially since 80 per cent of e-commerce relies on cash on delivery, they added.

“Those selling online need to offer cash on delivery [services], because an overwhelming majority of e-commerce relies on this,” said Iyad Kamal, chief operating officer of Aramex International.

Noting that there is a strong growth in e-commerce in the region, Kamal said it remains “modest” compared to its global popularity.

Fouad Jeryes — co-founder of CashBasha, an e-commerce start-up — said about 20-30 per cent of cash on delivery is a failed delivery, meaning that when the package arrives, the buyer either rejects the item as it was not what he/she thought it would be, or changes his/her mind and does not want to buy it anymore.

Moe Ghashim, CEO of Shop Go, said businesses should be well prepared.

“Start-ups and businesses in the field need to understand the logistics, shipping-related issues and analyse data to enable them to better understand customer trends and behaviours.”

Ghashim added that using data properly will help businesses grow and find solutions to problems they face in the field.

During the session, participants said although owners of mobiles outnumber those of tablets and PCs in the region, online shoppers still see tablets or desktop computers as more convenient tools to arrange e-transactions.

The two-day MENA ICT Forum 2014, held under the title “Disruptive Technologies”, was organised by the ICT Association of Jordan (int@j) and the ICT Ministry with the support of USAID and the country’s telecom operators.