Flextock forecasts Saudi e-commerce revenue to reach $13.7 billion in digital sales
Flextock, a leading e-commerce enabler in the Middle East, cites that the KSA was on pace to reach an impressive $13.71 billion in digital sales by the close of 2023 and a projected annual growth rate of 14.37% leading to a market volume of $23.46 billion by 2027. Against the backdrop of this digital growth, Flextock has emerged as a notable success story, capitalizing on the flourishing market to contribute significantly to the evolving landscape of e-commerce in the area.
The company most recently displayed this during White Friday & Riyadh Season 2023. While traditional companies typically see a doubling of sales during this period, Flextock boasted a noteworthy triple surge. The strategic approach of Flextock’s machine learning algorithm in predicting high-demand SKUs (Stock Keeping Units) enabled the fast and accurate delivery of the orders which minimizing the opportunity loss for merchants in the KSA to below 1%; this is a remarkable achievement compared to the industry benchmark in the region of 3-5%.
With consumers in the Kingdom increasingly gaining confidence through internet penetration of 98% and a growing young population the expansion of e-commerce platforms is rapidly growing.
Moreover, with the Saudi government promoting digital transformation as part of its Vision 2030 initiative to diversify the economy, the increased use of mobile devices for online shopping is progressively being seen by consumers to contribute to the overall expansion of the sector.
Looking ahead Saudi Arabia is anticipated to surpass a remarkable 20 million digital economy users by the year 2030 To stay on par with the bolstering growth, Flextock’s machine learning algorithm accurately predicts what is in high demand and estimates the velocity of SKUs efficiently to benefit all their merchants and minimize turnovers as well as maximize delivery time to under three days as opposed to the industry standard of just over three days.
Mohamed Mossaad, CEO of Flextock commented: “Our pioneering strategy for merchant growth in Saudi Arabia has been instrumental in solidifying our impactful presence, highlighting the direct link between our merchants’ success and ours. In the White Friday and Riyadh Season frenzy, where consumer activity reaches new heights, the demand for flexibility and agility has never been more pronounced
Our recognition of this paradigm shift led us to prioritize our promptness in product delivery, as well as our versatile approach to help ensure availability during peak seasons allowing us to streamline the process for our merchants. Understanding that consumer outreach extends beyond the day-to-day social media platforms, tapping into diverse channels ensures a widely accessible and agile shopping experience, allowing us to align with the pace and preferences of today’s dynamic marketplace in the region.”
With e-commerce experiencing a notable escalation in the KSA, consumers rely on social media platforms for their shopping needs such as Facebook, TikTok, and Snapchat, among other platforms. In response to rising advertising costs,
Flextock strategically diversified its sales channels, providing consumers with an outlet to not simply rely on traditional platforms which ultimately resulted in an additional 35% of merchant orders that led to their success. With a diverse range of users, Flextock is not only accommodating micro-brands and large-scale retailers during busy seasons but also all year around.
