Shopify in the Middle East. A 2021 Update.

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Should you Build your Ecommerce Site with Shopify?

As independent consultants, we get asked this question a lot. And the answer, is a resounding – “It depends… “

Like every digital project, there is no one correct answer that applies to every company. Before you ask the question about which ecommerce solution should you use, you should have already asked a set of different questions.

Beware of YouTube videos claiming that Shopify is the answer to creating a six-figure online income without any investment. It’s easy they say – just work out who your audience niche is, grab a few products off Ali Express via Shopify’s Oberlo app, connect your Instagram feed and you’re in business. WRONG.

The first part of the advice above is correct. Long before you think about whether Shopify is the platform you need, you need to understand who your customer is. How old are they? Do they use Snapchat? What language do they speak? Do they have a credit or debit card? How long are they willing to wait for delivery? How price sensitive are they?

The Pros of Shopify in 2020

1. Ease of use. This has always been Shopify’s biggest sell. You don’t need an IT department, you don’t need a devops team, you don’t need to worry about plugin conflicts and security. Shopify is a SaaS product that allows you to concentrate on being a merchant.
2. Speed to Market. If you don’t mind your online store looking like every other Shopify store on the planet, then launching an ecommerce site on this platform can be quicker than other options. In markets like Dubai and Saudi Arabia, companies are being driven by senior management to get to market fast rather than create something that is best practice.
3. Scalability. If your business grows quickly, then you don’t have to worry about your servers being able to cope with the load. This is also worked into the platform which you are paying for.
4. Lower up-front investment than some other platforms. Shopify is a subscription product. You pay monthly and may also pay a percentage of sales. This pay-as-you-go model is useful for companies that are conscious of cash-flow and don’t want to make a large investment in a build only to see sales not meet expectations.

The Cons of Shopify in 2020

1. The Middle East is not a Priority. Shopify is based in Canada. Most of it’s stores are in the USA with other English speaking markets like UK and Australia also a priority. Recently, Shopify have announced that they are opening offices in Germany, however the Middle East is really not a market they care much about. This is true of the core product and the app and theme developers that are in the Shopify ecosystem.
2. Scarcity of local partners.  Shopify’s business has grown off the back of entrepreneurs and start-ups. While there is now a Shopify Plus product that has been developed for larger ecommerce sites, Shopify is an ‘entry-level’ product. This works in places like the USA and UK where setting up a business and getting a bank account is relatively easy, however the regulatory environments in places like the UAE and Saudi Arabia make it hard for people to start a new business. As a result, there are not many partners who support these markets.
3. Functionality Gaps. We’ve been waiting for three years for Shopify to address some of the requirements that companies in the Middle East have. Specifically – Shopify still doesn’t really handle multiple languages and multiple stores very well. If your requirement is for a store to have both Arabic and English and or another language, then basic Shopify is probably not your best solution.
4. Price. Beware of the hidden costs of a Shopify store. While the build cost and up-front investment may be lower with Shopify, the platform does take a percentage of sales – so if you have a low margin business then this is something to consider. Most apps in the marketplace that extend the functionality of Shopify are monthly subscriptions. Something as essential as retargeting is not standard. If you have 10 add-ons that cost $15 to $20 per month each, then your actual cost of ownership of a Shopify can be quite high.

Alternatives to Shopify in the Middle East

BigCommerce – Similar price point to Shopify, but more open when it comes to integrations and less of a ‘Walled Garden’ approach to SaaS. Also more hungry than Shopify to get market share. For more serious projects – not just ‘get rich quick’ drop-shipping sites. 

WooCommerce – Again, this comes down to your requirements. If you have a limited number of SKUs and you are starting out, then something like WooCommerce on WordPress might work for you. The cost is lower, there is more flexibility and more access to partners. However you are more reliant on your IT partners, need to sort out your own hosting and increase your IT overheads.

Ecomz – A platform similar to Shopify, but with a much more multicultural and international outlook.

Zid – A Saudi Company that has created a Shopify style platform specifically for the specifics of the region including local payment and fulfillment integrations.

More about how to choose an Ecommerce platform and whether Shopify might be right for you in this book..