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Source:
الوطن
E-commerce faces costs of sales and visibility
Currently, e-commerce faces several challenges that impact its costs and customer experience. These include rising digital advertising expenses, delivery difficulties, overlapping customer bases across multiple brand applications, and increasing fees and commissions borne by both stores and customers. E-commerce expert Hussein Al-Hajji pointed out that digital advertising costs have become some of the most significant expenses, with stores needing to allocate more funds to advertising in order to counteract declining user attention caused by the saturation of ads. Delivery challenges—such as issues with timing and location—have led some customers to adopt alternative methods like self-collection boxes or pickup points, and this trend is expected to expand in the future. Al-Hajji explained that overlapping customer bases across brands and platforms have intensified competition, while the increasing commissions and fees have driven up store costs. This, in turn, leads to higher product prices on apps, affecting consumer purchasing decisions. The accumulation of these costs may push some customers back toward traditional channels, such as in-store shopping or pickup from outlets. It is also important to note that competition is no longer solely about attracting customers; it now also involves improving delivery efficiency and reducing costs associated with online shopping.
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