Iyad Kamal, Aramex COO delivers his annual e-trends report on ecommerce growth drivers in the Middle East and shares his insights on online shopping and ecommerce transaction trends in the region.

1. Arabnet 2015
Dubai
IYAD KAMAL
IYAD@ARAMEX.COM
IYAD KAMAL
@IYADKAM
Confidential

2. eBUSINESS TRENDS
OPS, PAYMENT & RETURNS
SOCIAL TRENDS
ALL NEW
Confidential

3. % 15
GLOBAL ECOMMERCE SALES?eBUSINESS TRENDS
Source: eMarketer

4. OF AGE COMPRISE ABOUT
MENA POPULATION
ONCE A
MONTH
43%
60% INTERNET USER IN THE GCC ARE MAKING ONLINE PURCHASES
25 YEARS
Source: Wamda - 25 Essential Stats on E-Commerce in the Middle East
REGIONAL ECOMMERCE POTENTIALeBUSINESS TRENDS

5. Source: eMarketer
WHY DO PEOPLE BUY FROM ABROAD?
OPPORTUNITIES FOR REGIONAL ETAILER
eBUSINESS TRENDS

6. SNS, ecommerce; domestic, regional, international
ARAMEX SPECIFIC DATA!eBUSINESS TRENDS

7. Source: Aramex eCommerce Data
31%Saudi
94%
Saudi
29%Egypt Egypt
20%UAE UAE
14%UAE Saudi
Origin Destination % of total packages
WHERE ARE THE REGIONAL ECOMMERCE VOLUMES COMING
FROM?
eBUSINESS TRENDS

8. Source: Aramex eCommerce Data
Intra MENA $102
Into MENA $139
willing to pay more shipping
as variety has a price with duty % being an
advantage
VALUE OF ORDER?eBUSINESS TRENDS

9. SHOESAPPAREL BEAUTY SUPPLIES BOOKS/BAGS
20%
19%19%
2013
2014
BEAUTY SUPPLIESAPPAREL SHOESTOOLS
Source: Aramex Shop&Ship Data
WHAT DO PEOPLE BUYeBUSINESS TRENDS

10. eBUSINESS TRENDS
OPS, PAYMENT & RETURNS
SOCIAL TRENDS
ALL NEW
Confidential

11. COD VS. CREDIT CARD PAYMENT
Source: Aramex eCommerce Data
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!
GLOBAL ECOMMERCE SALES?OPS, PAYMENT &
RETURNS

12. PAYMENT MEANS USED
Source: Aramex Shop & Ship Data
2012 2013 2014
56% 52% 44%
35% 29% 23%
6% 16% 30%
3% 3% 3%
OPS, PAYMENT &
RETURNS

13. WHO PAYS ONLINE (SHIPPING) MORE
Source: Aramex Shop & Ship Data
36%
26%
24%
23%
UAE
BAHRAIN
LEBANON
QATAR
SAUDI ARABIA 22%
OPS, PAYMENT &
RETURNS

14. AVERAGE DELIVERY ATTEMPTS
Source: Aramex Shop & Ship Data
9%
50%
20%
9%
25%Card: 1 1
COD: 1.88 1.50
2013 2014


OPS, PAYMENT &
RETURNS

15. LAST MILE PAYMENT CONVERGANCE
Source: Aramex Shop & Ship Data
COD becoming POD
With SADAD and mobile payment devices with couriers
OPS, PAYMENT &
RETURNS

16. MENA LOGISTICS RETURNS
Source: Aramex eCommerce Data
Payment 2012 2013 2014
COD 24% 21% 19%
Credit Card 7% 7% 8%

OPS, PAYMENT &
RETURNS

17. TOP RETURN REASONS
Source: Aramex eCommerce Data
No response 42%
Bad address 13%
Client not available 10%
OPS, PAYMENT &
RETURNS

18. EUROPEAN LOGISTICS RETURNS
Source: Aramex eCommerce Data
Less
than 1%
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

19. GROWTH OF PICKUPS
Source: Aramex eCommerce Data
17% from service
centersas more pick up points become available
OPS, PAYMENT &
RETURNS

20. MYADDRESS RESPONSE RATES
Source: Aramex Operations Data
50%
Saudi: 25%
UAE: 31%
direct impact on call center!
OPS, PAYMENT &
RETURNS

21. eBUSINESS TRENDS
OPS, PAYMENT & RETURNS
SOCIAL TRENDS
ALL NEW
Confidential

22. WHERE ARE THE REQUESTS COMING FROM?
Source: Aramex Social Media Data
9%
50%
20%
9%
25%
KSA 53%
KUWAIT 12%
UAE 10%
INDIA 9%
EGYPT 5%
QATAR 4%
OTHER 9%
2013 2014
65%
5%
5%
4%
3%
14%
1%
SOCIAL TRENDS

23. CUSTOMER SERVICE REQUESTS?
Source: Aramex Social Media Data
58% 78%
68% 94%
2013
2014
SM a main customer service channel!
SOCIAL TRENDS

24. eBUSINESS TRENDS
PAYMENT & RETURNS
SOCIAL TRENDS
ALL NEW
Confidential

25. WHAT KEEPS US BUSY?
Simple: delivery on time and at an affordable price
ALL NEW

26. FURTHER CONNECTING WITH THE CLIENT
Client Courier
Objectives:
- Satisfied
- Delivery on time
- Affordable price
Objectives:
- Satisfied
- Deliver on time
- Affordable cost
Focus: How to get them closer, physically and technically?
(information and consistency)
ALL NEW

27. ARAMEX KEY INVESTMENT AREA!
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…
TECHNOLOGY is making it happen
(mobile in specific with more than 90% penetration)
App App
ALL NEW

28. 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
ALL NEW

29. Announcement!

30. 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

31. Thank You
IYAD KAMAL
IYAD@ARAMEX.COM
IYAD KAMAL
@IYADKAM