Arabnet 2015 Dubai

Arabnet 2015
Dubai
IYAD KAMAL
IYAD@ARAMEX.COM
IYAD KAMAL
@IYADKAM
Confidential
eBUSINESS TRENDS
OPS, PAYMENT & RETURNS
SOCIAL TRENDS
ALL NEW
Confidential
eBUSINESS TRENDS
GLOBAL ECOMMERCE SALES?
% 15
Source: eMarketer
eBUSINESS TRENDS
REGIONAL ECOMMERCE POTENTIAL
43%
25 YEARS
OF AGE COMPRISE ABOUT
60%
INTERNET USER IN THE GCC ARE MAKING ONLINE PURCHASES
MENA POPULATION
Source: Wamda - 25 Essential Stats on E-Commerce in the Middle East
ONCE A
MONTH
eBUSINESS TRENDS
Source: eMarketer
WHY DO PEOPLE BUY FROM ABROAD?
OPPORTUNITIES FOR REGIONAL ETAILER
eBUSINESS TRENDS
ARAMEX SPECIFIC DATA!
SNS, ecommerce; domestic, regional, international
eBUSINESS TRENDS
WHERE ARE THE REGIONAL ECOMMERCE VOLUMES COMING
FROM?
Origin
Destination
% of total packages
Saudi
Saudi
31%
Egypt
Egypt
29%
UAE
UAE
20%
UAE
Saudi
14%
94%
Source: Aramex eCommerce Data
eBUSINESS TRENDS
VALUE OF ORDER?
Intra MENA
$102
Into MENA
$139
willing to pay more shipping
as variety has a price with duty % being an
advantage
Source: Aramex eCommerce Data
WHAT DO PEOPLE BUY
eBUSINESS TRENDS
2013
20%
APPAREL
2014
SHOES
BEAUTY SUPPLIES
BOOKS/BAGS
19%
19%
APPAREL
Source: Aramex Shop&Ship Data
BEAUTY SUPPLIES
TOOLS
SHOES
eBUSINESS TRENDS
OPS, PAYMENT & RETURNS
SOCIAL TRENDS
ALL NEW
Confidential
OPS, PAYMENT &
RETURNS
GLOBAL ECOMMERCE SALES?
COD VS. CREDIT CARD PAYMENT
Year
Credit Card
Cash on Delivery
2011
29%
71%
2012
29%
71%
2013
27%
73%
2014
24%
76%
It is still a COD market and etailers promote it!
Mainly domestic COD today but changing!
Source: Aramex eCommerce Data
OPS, PAYMENT &
RETURNS
Source: Aramex Shop & Ship Data
PAYMENT MEANS USED
2012
2013
2014
56%
52%
44%
35%
29%
23%
6%
16%
30%
3%
3%
3%
OPS, PAYMENT &
RETURNS
WHO PAYS ONLINE (SHIPPING) MORE
UAE
36%
BAHRAIN
26%
LEBANON
24%
QATAR
23%
SAUDI ARABIA
22%
Source: Aramex Shop & Ship Data
OPS, PAYMENT &
RETURNS
AVERAGE DELIVERY ATTEMPTS
2013
2014
20%
Card: 1
COD: 1.88
9%
9%
50%
Source: Aramex Shop & Ship Data
25%

1
1.50 
OPS, PAYMENT &
RETURNS
LAST MILE PAYMENT CONVERGANCE
COD becoming POD
With SADAD and mobile payment devices with couriers
Source: Aramex Shop & Ship Data
OPS, PAYMENT &
RETURNS
MENA LOGISTICS RETURNS
Payment
COD
Credit Card
Source: Aramex eCommerce Data
2012
24%
7%
2013
21%
7%
2014
19%
8%

OPS, PAYMENT &
RETURNS
TOP RETURN REASONS
No response
42%
Bad address
13%
Client not available 10%
Source: Aramex eCommerce Data
OPS, PAYMENT &
RETURNS
Less
than 1%
Source: Aramex eCommerce Data
EUROPEAN LOGISTICS RETURNS
Why?
- Orders are made with credit card
- Addresses are correctly structured in Europe
and customers provide accurate addresses
including postcode
- Carriers can leave at a safe place or deliver
to a neighbor if the customer wasn’t
available
OPS, PAYMENT &
RETURNS
GROWTH OF PICKUPS
17% from service
centers
as more pick up points become available
Source: Aramex eCommerce Data
OPS, PAYMENT &
RETURNS
MYADDRESS RESPONSE RATES
Saudi:
UAE:
50%
25%
31%
direct impact on call center!
Source: Aramex Operations Data
eBUSINESS TRENDS
OPS, PAYMENT & RETURNS
SOCIAL TRENDS
ALL NEW
Confidential
WHERE ARE THE REQUESTS COMING FROM?
SOCIAL TRENDS
2013
2014
53%
65%
12%
5%
10%
5%
9%
4%
5%
3%
QATAR
4%
1%
OTHER
9%
14%
KSA
KUWAIT
20%
UAE
9%
9%
25%
INDIA
EGYPT
50%
Source: Aramex Social Media Data
SOCIAL TRENDS
2013
2014
CUSTOMER SERVICE REQUESTS?
58%
78%
68%
94%
SM a main customer service channel!
Source: Aramex Social Media Data
eBUSINESS TRENDS
PAYMENT & RETURNS
SOCIAL TRENDS
ALL NEW
Confidential
ALL NEW
WHAT KEEPS US BUSY?
Simple: delivery on time and at an affordable price
FURTHER CONNECTING WITH THE CLIENT
ALL NEW
Focus: How to get them closer, physically and technically?
(information and consistency)
Client
Objectives:
- Satisfied
- Delivery on time
- Affordable price
Courier
Objectives:
- Satisfied
- Deliver on time
- Affordable cost
ARAMEX KEY INVESTMENT AREA!
ALL NEW
TECHNOLOGY is making it happen
(mobile in specific with more than 90% penetration)
Why?
- Mobile is your address!
- C2C communication, bypass the
CC
- Live tracking and avoid calls
- Online payment, reduce cash
management
- Big data analysis:
- Non payers
- Not at home
- Same address delivery,
don’t call…
App
App
ALL NEW
LAST MILE SOLUTIONS / LAST MILE TO LOCKERS
NEVER MISS A DELIVERY AGAIN!
Available 24/7
100% safe & secure
Quick, simple and fun
Cheapest delivery option
Announcement!
OUR NEW OFFERING to grow the industry…
eCommerce Package
o Classify clients by shipping tiers
o Provide shipping rates based on tier volumes
o Advance COD payment which equates to paying of COD amounts upon
shipping
o July 1st 2015
Thank You
IYAD KAMAL
IYAD@ARAMEX.COM
IYAD KAMAL
@IYADKAM