E-commerce, or electronic commerce, refers to the buying and selling of goods and services over the internet. In recent years, e-commerce has experienced rapid growth worldwide, including in Egypt. In this essay, we will explore the volume of e-commerce in Egypt, including its growth rate, the most popular products sold online, and the challenges faced by the industry.
According to a report by the United Nations Conference on Trade and Development (UNCTAD), the e-commerce market in Egypt is growing at an impressive rate of 36% annually, with online sales expected to reach $3 billion by 2022. This growth can be attributed to several factors, including the increasing number of internet users in Egypt, the expansion of mobile payment solutions, and the growth of the young population in the country.
The most popular products sold online in Egypt include electronics, fashion, and beauty products. Online shopping platforms such as Jumia, Souq, and Noon have become household names in the country, offering a wide range of products at competitive prices. Additionally, many local businesses have started to take advantage of e-commerce by launching their own online stores, allowing them to reach a wider audience and increase their sales.
Despite the growth of e-commerce in Egypt, the industry still faces several challenges. One of the biggest challenges is the lack of trust in online transactions, with many consumers still preferring to shop in physical stores where they can see and touch the products before purchasing. This lack of trust is compounded by the prevalence of counterfeit products and fraudulent activities online, which can further damage consumers’ confidence in e-commerce.
Another challenge faced by e-commerce in Egypt is the lack of infrastructure, particularly in terms of logistics and payment solutions. Many areas in Egypt, especially in rural areas, lack reliable delivery and payment services, making it difficult for businesses to reach these markets. Additionally, the high cost of international shipping and customs fees can make it difficult for businesses to import products from abroad, limiting their product offerings and potentially driving up prices for consumers.
Despite these challenges, the future of e-commerce in Egypt looks promising. The government has recognized the potential of the industry and is taking steps to support its growth. For example, in 2019, the government launched the National E-commerce Strategy, which aims to support the growth of e-commerce in the country by addressing the challenges faced by the industry and promoting the development of digital infrastructure.
In conclusion, e-commerce is rapidly growing in Egypt, with online sales expected to reach $3 billion by 2022. While the industry still faces challenges such as a lack of trust in online transactions and infrastructure issues, the government and businesses are taking steps to address these challenges and support the growth of e-commerce in the country. As more consumers become comfortable with online shopping, and more businesses take advantage of the opportunities offered by e-commerce, the future looks bright for the industry in Egypt