“given the obstacles in logistics, is it a good idea to do business on MENA e-commerce platforms?”Question for Chinese sellers on Souq&Noon

When most of the cross-border e-commerce operators focus on the US, European, and Southeast Asian markets, a few sellers

look to the Middle East.

Different from other areas of the

world,with the complicated geographical conditions and humanistic factors,logistics has always been a headache for middle east e-commerce sellers.

Today,let us just focus on two representative platforms raised in local market,which are Souq and Noon to see if we can provide any answers for Chinese sellers.

SOUQ

Founded in 2005

The oldest and largest e-commerce website in the Middle East

Acquired by Amazon for $580 million in 2017


NOON

Headquartered in Dubai, the main marketing areas are Saudi Arabia and UAE

Established in 2017 by the local consortium


Since its inception, Noon has been emphasizing its indigenous genes and positioning itself as “the first e-commerce platform based in the homeland and the No.1

brand in Arab world”. Especially after Souq was acquired by Amazon, the name of Noon's local e-commerce became more special.

Logistics solution

Souq

Similar to Amazon, Souq's current logistics mode is mainly FBS and self-delivery mode.

Souq asks the seller to notify Q Express to pick up the goods within three days after the customer's order placed, otherwise, their online shops will face the risk of being blocked. For Chinese

sellers, only three days from the China to the Middle East, the time is very tight, so the goods must be prepared in advance.

Where to keep these goods? There are two solutions to choose, FBS service or overseas warehouse.

FBS,which is Fulfiled by Souq, It is the official warehousing and distribution system. The seller's products are stored in the official warehouse of Souq. After the order is generated, it will be delivered to the buyer by Souq.The delivery time is 3 working days. Returning is also handled by Souq.

The advantages of FBS:

1) Souq's UAE warehouse can cover the UAE,

Oman, Bahrain, Kuwait, Saudi Arabia and other countries;

2) It helps save the investment in overseas

warehouses and focus more on product and flow operations.

Self-delivery mode means the products arestored by the merchants. After the order is generated, the logistics company of Souq will pick up the goods and then deliver them. The deliver limit is 3 working days.

Noon

As for Noon, its current logistics mode is similar, they have FBn and SB2B mode.


FBN

Noon's overseas warehouse mode is basicly the same as other overseas warehouse modes. The seller send goods to Noon's warehouse in advance, and the parcel will be delivered directly from the warehouse after placing the order. It can be delivered on the same day of the order, and the average deliver time is the following day. For example, if the customer is in the center of Dubai and made an order in the morning, he can receive the goods in the afternoon.


SB2B mode

Since Noon also has a transfer warehouse in Shenzhen, the seller's self-delivery mode is also quite convenient.

After the customer places an order, the seller must send the goods from their warehouse to Noon's Shenzhen transit warehouse within 72 hours. After that, Noon will be responsible for

transporting the goods from Shenzhen to the overseas warehouses in the Middle East, and then the Noon self-built logistics team will complete the last mile delivery and deliver the goods to the buyers. The entire logistics process takes 6-10 days and is the fastest self-delivery in the Middle East.

Whether it is self-delivery or overseas warehouse, the logistics cost of the two modes is free, and the storage fee and operation fee in the overseas warehouse mode are also free. The last mile delivery of both modes is done by Noon's self-built logistics team, and the local delivery can be completed on the same day of the order.

As for the choice of self-delivery mode or overseas warehouse mode, it depends on the sellers themselves.






2020-08-07 1279

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