Seven Key Drivers to Online Retailing Growth in KSA

Abstract

Retailers in Saudi Arabia have been reserved in their adoption of electronically delivered aspects of their business. This paper reports research that identifies and explores key issues to enhance the diffusion of online retailing in Saudi Arabia. Despite the fact that Saudi Arabia has the largest and fastest growth of ICT marketplaces in the Arab region, e-commerce activities are not progressing at the same speed. Only very few Saudi companies, mostly medium and large companies from the manufacturing sector, are involved in e-commerce implementation. Based on qualitative data collected by conducting interviews with 16 retailers and 16 potential customers in Saudi Arabia, 7 key drivers to online retailing diffusion in Saudi Arabia are identified. These key drivers are government support, providing trustworthy and secure online payments options, provision of individual house mailboxes, providing high speed Internet connection at low cost, providing educational programs, the success of bricks-and-clicks model, and competitive prices.