GoNabit reports increased customer confidence
Company saw 18% increase in confidence in e-commerce in sponsored poll
Confidence in local e-commerce operations is on the rise, according to GoNabit's new e-commerce Confidence Index.
The Index, which surveyed GoNabit customers in the UAE, found that 75% felt confident in buying from Middle East e-commerce sites, an increase of 18% since the group buying company last surveyed its users in March this year.
GoNabit partnered with independent research consultancy YouGov Siraj to poll 2,470 registered GoNabit customers in July.
"At GoNabit we've worked very hard to build trust and confidence in e-commerce. Introducing a customer charter and anti-spam policy, becoming a TRUSTe Sealholder and focusing on having the best possible customer service for both buyers and merchants are all ways in which we instill confidence in our shoppers. Building this trust is great for our business and also for the health and continued success of the e-commerce space in the region," said Dan Stuart, CEO and Co-founder, GoNabit.com..
The research also revealed that respondents were over twice as likely to buy online from sites based in the region where they are resident. Sixty percent of respondents buy online once a month or more from local sites, while 25% purchase from other areas of the world once a month or more.
The customer sample came from a mix of nationalities, with 52% Asian, 18% Arab and 24% Westerners, with 65% of respondents under 35 and 35% 35 or over.
According to GoNabit, the research also showed that users' preferred to shop with credit cards online.
"Historically, UAE shoppers have bought confidently from overseas websites, but have not had compelling reasons or opportunities to buy from local or regional websites due to a lack of choice, quality and trust. Our latest research reveals a significant attitudinal shift. The majority of people not only feel confident shopping from local websites, but they are actually buying twice as much online from home-grown sites as they are internationally," said Stuart.
There has also been a 16% rise in the use of credit cards and debit cards on e-commerce sites since March 2011, with 69% of those polled now preferring to use credit cards and debit cards to purchase online.
"A well documented distrust of credit cards among shoppers in the Middle East is clearly waning - with GoNabit built on the requirement that purchasers on our website transacts via credit card. This isn't about small numbers either; the research shows that shoppers are prepared to spend up to $1,000 or more online in a single transaction. Consumers are confident shopping with us and making large purchases and they're confident using their credit card to do it," said Sohrab Jahanbani, COO and Co-founder, GoNabit.com.
Transactions conducted on local e-commerce sites also serve as an entry point into e-commerce, according to GoNabit, with 38% of respondents making their first ever online purchase on the site.
The research also showed that consumers are planning to increase their online purchasing, with 45% of those polled saying they will now buy different kinds of products online and 34% saying they will spend more money on future purchases.
Approximately 40% of respondents said they plan to purchase more from websites based in the Middle East region and 41% said they would try shopping from a wider range of websites.
Forty-four percent of respondents to the poll were from the higher income bracket, earning $5,000 or more per month.
"This research outlines compelling reasons for merchants to consider a GoNabit partnership - we have an increasingly confident user base that are credit card savvy and have significant purchasing power. They are ready, willing and able to shop online to discover new merchants and experiences in their city," added Jahanbani.