Dubai-based logistics solutions and technology provider Lyve recently launched a cross border delivery service from UAE to Saudi Arabia, its first, enabling eCommerce businesses to deliver goods between the two countries.
Talking to Logistics News ME, Ian Caron, Senior Director – Non-Food Logistics, Lyve, explains why this solution was introduced: “The growing demand from our existing and new client base requesting us to support their deliveries for this lane has been one of the main contributing factors in extending delivery solutions to Saudi from the UAE.
“Simply listening to the recurring pain-points encountered by most companies with this specific delivery lane has driven us to work out a simple yet seamless door-to-door solution, focused on mitigating any customs and other potential transit delays. It’s a simple four step process from collection, documentation, transit clearance and delivery to end consumer which is handled 100% on behalf of our client.”
He adds: “The confidence which our clients have expressed commitment, and the services they have come to expect from our eCommerce team is proving that reliable services at reasonable prices are a winning formula. This retains and expands the work collaboration with our clients into other markets.”
Tapping into new markets
Cross border services have steadily become of vital importance to the eCommerce sector as it offers multiple benefits. Expanding customer base and tapping into new markets can increase sales while helping businesses learn about the demand in different markets – potentially leading to creating new products and growing the business.
“Cross border delivery can also save on inventory cost and increase profits by ensuring that products no longer sit in warehouses for long periods of time,” Ian notes.
Since its launch, the service has been quite well by the market, leading Lyve to expand this service throughout the region soon. Ian reveals: “We plan on establishing delivery solutions across the rest of the GCC countries first before tackling the MENA region, and ultimately going global – in parallel with our current office expansion worldwide.”
For now, Lyve’s focus is to be the most convenient process available in the market for smaller eCommerce businesses in Saudi Arabia. What makes Lyve’s cross border delivery solution stand out is its competitive rates and flexible payment methods, no minimum order commitment and easy bookings, hassle-free documentations and reduced customs delay, and daily schedules and speedy deliveries.
Ian adds: “Lyve combines extremely competitive rates on the market with prepaid or cash on delivery options, encouraging SMEs to tackle the Saudi market. We’ve also ensured that no minimum orders are required for shipping – making it easier for small businesses to commit to customers in Saudi.”
This solution allows Lyve’s eCommerce clients to move goods to Saudi every day, having them delivered to customers within three to six working days.
Thriving eCommerce market
Lyve’s drive comes from the region’s burgeoning eCommerce that has thrived during the pandemic, with lockdowns becoming a catalyst for a new purchasing behaviour, with more customers turning to online shopping.
Ian says: “A whopping 80% of young Arabs shopped online frequently in 2020, compared to 71% in 2019. eCommerce sales in the MENA region are expected to reach USD48.6 billion in 2022 and the UAE, Saudi and Egypt currently account for more than 80% of the region’s overall eCommerce market.
“As for cross border eCommerce, 66% of online shoppers in the Middle East placed purchases outside of the region. Fashion and beauty alone are roughly a USD5 billion market in the GCC and happen to be one of the region’s fastest growing eCommerce categories. Along with electronics, home products and groceries, they make up 98% of the UAE and Saudi’s eCommerce.”
The company has big plans to capitalise on this and has tied up eCommerce, courier, pharmaceutical, telecommunication and banking firms in the region. Ian reveals: “Our growing synergy with major brands is proof that although business is already thriving, we’re simply scratching the surface in our non-food logistics endeavours domestically, regionally and on a global scale.”