E-COMMERCE

E-COMMERCE TRENDS

The FedEx survey, which concentrated on important Asian regions, revealed tendencies comparable to how MENA customers value substantiality in their e-commerce purchase decisions.

Recent e-commerce research shows that small and medium-sized businesses (SMEs) that adopted e-commerce during the COVID pandemic are underestimating the importance that consumers now place on sustainability in their purchase decisions. FedEx

Express (FedEx), a subsidiary of FedEx

Corp, is one of the world’s largest express transportation companies.

According to 75% of the SMEs polled, buyers are more interested in getting their items as soon as possible than in shopping sustainably.

Additionally, 73% of SMEs said that clients value price more than anything else when purchasing items. Consumer insights reveal that the reality is substantially different. In July 2022, the What’s Next in E-Commerce study surveyed SMEs and consumers in 11 significant Asian regions. The survey looked at how ecommerce was developing in Asia and uncovered several tendencies that may lead to further development – from each market, 300 SMEs with fewer than 250 workers and 500 customers were surveyed.

KEY FINDING: CONSUMERS WANT BOTH SUSTAINABILITY AND SPEED Consumer worries about the environment continued to rise throughout the COVID-19 pandemic, contributing to the faster expansion of e-commerce. Many customers put the planet’s future first and do not want to make any concessions; they want both sustainability and quick delivery. In the study, 67% of respondents said they were just as concerned about how long online shopping would last as they were about getting their purchases swiftly.

According to an e-commerce study, eight out of ten customers want the online retailers they do business with to use sustainable business practices. Additionally, seven out of ten customers prefer doing business with organisations with strong Environmental, Social, and Governance (ESG) policies. This offers an intriguing chance for SMEs to spend money on more environmentally friendly procedures.

United Arab Emirates consumers are also the most likely to consider sustainability factors when purchasing. The entire Middle East and North Africa area are also exhibiting similar trends, according to a PwC poll, with 53% of respondents indicating they frequently or constantly buy environmentally friendly items.

TAKING A MORE SUSTAINABLE APPROACH TO DELIVERY “Sustainability is no longer optional for SMEs interested in expanding their e-commerce businesses. Consumers increasingly see it as an essential and non-negotiable part of their decision-making process,” said Kawal Preet, president of Asia Pacific, Middle East & Africa (AMEA) at FedEx Express. “SMEs can make an immediate difference by thinking about the logistics connecting their supply chain to the end-consumer. At FedEx, we’re already taking tangible steps to mitigate the impact of delivery on the planet.”

Lastly, to cut carbon emissions during the delivery cycle and achieve carbon-neutral worldwide operations by 2040, FedEx is taking a multi-track approach. For last-mile deliveries, this entails the purchase of electric trucks and digital solutions like FedEx® Electronic Trade Documents, which enable users to submit their customs documentation electronically and therefore cut down on paper usage. Additionally, FedEx is putting wastereduction strategies into practice, such as reusable packaging.

AGILITY SAUDI WAREHOUSE MAKES HISTORY AS THE FIRST IN THE GCC TO EARN EDGE STATUS

Agility, a provider of supply chain services, infrastructure, and innovation, announced that a warehouse at its Agility Logistics Park complex in Riyadh is the first in Saudi Arabia and the only one in the GCC to earn EDGE Advanced certification as a sustainable building.

The International Finance Corp. (IFC), a subsidiary of the World Bank, oversees the EDGE (Excellence in

Design for Greater Efficiencies) certification system for energy-efficient buildings. Basic accreditation necessitates a minimum anticipated savings of 20% in energy usage, water use, and “embodied energy” in materials compared to standard local construction.

Agility received EDGE Advanced certification for a warehouse situated in 870,000 SQM Riyadh park. EDGE Advanced buildings are “zero-carbon ready” structures that are at least 40% more energy efficient than others in the market.

“Agility is determined to lead the way in developing modern, energy-efficient logistics infrastructure. We want to help drive Saudi growth, generate jobs, conserve resources and be an example for others around sustainability,” said Michel Saab, CEO of Agility Logistics Parks/Global Operations.

Agility Logistics Parks are secure, connected, 24/7 complexes with Grade A, international-standard warehouses designed with advanced engineering and sustainability features. In addition to its Riyadh complex, Agility Logistics Parks operates a 200,000 SQM facility in Dammam and recently announced plans to invest SAR 611 billion (USD 163 million) to build a 576,000 SQM warehouse park near Jeddah. International and local enterprises from the retail, consumer products, technology, automotive, energy, and e-commerce industries are among the clients of Agility Logistics Parks. In October, Saudi Arabia released outlines of a comprehensive strategy to establish the nation as a global logistics hub. The Global Supply Chain Resilience Initiative (GSCRI) of Saudi Arabia hopes to encourage $11 billion in new investment in its first two years and to strengthen the country’s role as a critical supply chain crossroads through the advancement of logistics and industrial base, economic cities, green energy, innovation, and production.

“We believe Agility has an important role to play in helping the Kingdom achieve its ambition to be a key link in global supply chains and to meet the goals outlined in its broader Vision 2030 plan,” Michel concluded.