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Ramadan shopping spurs online sales growth in UAE, driving demand for modern logistics tech

With Eid just around the corner, online shopping has significantly increased in the UAE. This surge in eCommerce has impacted not only retailers but also small and medium-sized enterprises (SMEs) and the logistics industry in the MENA region.

According to research, there is a potential 33% surge in shopping volumes in the MEA region during Ramadan, which introduces the season of giving gifts to loved ones. Soham Chokshi, CEO and Co-Founder of Shipsy, highlights that this increase in online shopping means fulfilling evolving customer expectations, which can be a challenge for retailers and logistics stakeholders.

To meet these expectations, modern delivery management technologies are critical in delivering on one-day, same-day, and one-hour delivery expectations. Artificial intelligence (AI) can help businesses boost service level agreement (SLA) adherence by proactively preventing failures and mitigating any negative impact on the customer experience. Additionally, companies can accurately predict capacity requirements and onboard freelance riders to service growing delivery demands efficiently.

Using modern routing tools, territory optimisation capabilities, intelligent order allocation, and other technologies, logistics stakeholders can reduce last-mile logistics costs by more than 10%, increase on-time deliveries by 24%, and boost delivery per driver by 14%. These technologies can significantly benefit SMEs with different resources than larger retailers.

The eCommerce boom during the Eid season is good news for retailers, SMEs, and the logistics industry in the MENA region. However, it also means fulfilling evolving customer expectations, which can be challenging. To meet these expectations, businesses must leverage modern delivery management technologies to improve SLA adherence, reduce costs, and increase efficiency. As Soham Chokshi said, “Using modern delivery management technologies will be critical.”

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