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Souq.com is one of the biggest eCommerce site in the Arab world. Its attract more than 35 million visits to its catalogue of more than 500,000 unique products in 20 different categories, including consumer electronics, household goods, fashion, watches, perfumes, toys, and baby products. Souq.com works as a retail site and marketplace for third party sellers. It bids a convenient and safe online shopping skill with online payments, option to pay cash on delivery and free returns. Lets talk about Souq eCommerce business revenue model and how marketplace works.
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Souq.com was originated in 2005 by co-founders Ronaldo Mouchawar and Samih Toukan. It was initially an auction site related to internet portal Maktoob. In 2011 Souq.com different its model to an online shopping site similar to Amazon.com with a marketplace and retail items for sale on its platform. Headquartered in Dubai, UAE, Souq.com eCommerce business model provides to the needs of local markets with commercial offices in Egypt, Kingdom of Saudi Arabia and Kuwait, and a technical and development center in Jordan.
Souq eCommerce business revenue model and how marketplace works?
According to a latest report, the e-commerce market in the Middle East was expect to be worth $19 billion in 2018, with about 15% of the transactions occurring on mobile devices. Another report from PayFort put the value of the e-commerce sector in the Middle East at $9 billion in 2017 and projected that the industry would be worth up to $10 billion in the UAE and Saudi Arabia by 2020. Souq.com is a leading e-commerce marketplace company in the Middle East that has recently joined the Billion Dollar Unicorn Club.
Often called the Amazon of the Middle East, Dubai, UAE-based Souq.com e-commerce marketplace was founded in 2005 by CEO Ronaldo Mouchawar, Jabbar Internet Group’s Samih Toukan, and Hussam Khoury. It was initially an auction site that was link to the Arab Internet portal Maktoob. Following Maktoob’s acquisition by Yahoo! in August 2009, Souq.com was spun off as part of Jabbar Internet Group. Then in early 2011, Souq.com pivoted to a marketplace with a fixed price model. In late 2011, it launched its retail division.
Today, it is the largest eCommerce multi vendor in the region, featuring about 1 million products across 31 categories such as consumer electronics, fashion, health and beauty, household goods, baby clothes, watches, and perfumes. It has over 45 million visits per month. It operates both as a retail site and as a eCommerce marketplace for third party sellers, and it has a network of over 75,000 traders. Souq offers a suitable and safe online shopping experience with online payments, option to pay cash on delivery, and free returns.
It has commercial offices in Egypt, Kingdom of Saudi Arabia, and Kuwait and a technical and development center in Jordan. It employs over 2500 people including several expatriates from the US who have worked at eBay, Yahoo!, and Procter & Gamble.
Souq.com’s Financials – Business revenue model
While Souq.com acquired by amazon and follow the Amazon model, it has had to adapt it to address the two main challenges of payment and delivery. Credit card usage is not common throughout the Middle East. It has therefore create a prepaid card that can be purchased in brick and mortar stores for cash and then can be redeem online. The company also owns its own payment gateway called PayFort, which has been a way to get merchants selling online not just on Souq but elsewhere too. In future, the company plans to take PayFort into offline payments, potentially with point-of-sale services.
Another huge challenge Souq eCommerce business revenue model and how marketplace works is the lack of a dependable logistics infrastructure or mail service, or in some locations, the lack of any address system. Souq.com has tackled this challenge by developing its own local delivery system, investing in logistics companies, and coordinating with local couriers. Souq.com is venture funded and has raise a total of $425 million from investors including Tiger Global, Naspers, Standard Chartered Private Equity, Baillie Gifford, MENA Venture Investments, and International Finance Corporation. In February 2016, it closed a funding round of over $275 million that valued it at $1 billion. An earlier round in March 2015 for $ 75 million had valued it at $577 million. But in Jul 2017 souq acquired by amazon.
How to Sell On Souq?
1- Seller account: That’s obvious, you need to have a seller account in order to sell on Souq.com.
2- Products: You need to have something to sell don’t you Make sure that your products are brand new as we currently don’t offer used items on Souq.com.
3- Certified email address: We require that you verify your email address in order to start listing your products, as we will communicate all your account’s information on it.
4- Shipping location: The courier will use the details of this location in order to pick up your orders and deliver them to the customers. Please note that you will require to verify the mobile phone number used to contact this location.
5- Trade license and ID: When selling specific categories, we require the trade license and ID verification for legal purposes, this will insure that you’re allow to sell them in your country.
6- Bank account: You need a valid bank account so you can get paid for the products you sell on Souq.com. Your sales revenue goes to your Souq.com account, and you can simply request to withdraw the available amount and transfer it to your bank account. Check this section for more details about withdrawing your money.
How to buy?
Buying on souq.com is really easy. Navigation through categories, searching for specific products and product selection are simple. Where multi payment options are support for all of your needs.
1 Search and explore products
2 Learn about the product, and add to cart
3 Review your shopping cart, and Sign in to checkout
4 Place your order
5 Congrats! Track your order until it’s deliver to your door
It’s time to launch your online shopping website now that you have all these proportions in line. So If you want to develop your own Souq eCommerce marketplace website or Mobile App Contact Us
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