A new report from Crowd Analyzer indicates that consumer distrust is significantly slowing the growth of online business in Egypt.
The report, published on August 15, reveals that nearly half of all online reviews express a negative perception of e-commerce, primarily due to concerns about poor product quality and unsatisfactory return policies.
The annual “E-commerce Cross-Market 2024” report, which analyzes market trends in Egypt, Saudi Arabia, and the United Arab Emirates, found that 41% of Egyptian reviews on digital platforms reflect a profound lack of trust in the sector. This level of distrust is notably higher than in the UAE, where consumer perception remains largely positive.
The report identifies several key weaknesses in the Egyptian e-commerce market: A staggering 73% of conversations on this topic reflect negative sentiment, making it the most significant source of dissatisfaction. Only 38% of reviews found the quality of delivered products to be satisfactory, the lowest rate among the markets studied. The fear of fraud, a lack of regulatory guarantees, and what consumers perceive as deficient after-sales service all contribute to a deep-seated mistrust in the sector.
This structural distrust persists despite the Egyptian government’s initiatives to promote e-commerce as a driver of economic growth.
The situation in Egypt stands in stark contrast to its Gulf neighbors. In Saudi Arabia and the UAE, consumer confidence is bolstered by stricter regulations and more organized logistics, allowing e-commerce to flourish as a dynamic and trusted sector. Despite Egypt’s large, young population and increasing internet penetration, trust remains the primary obstacle to the sector’s growth.
MK/ac/fss/abj/APA