Why to start an online business?
Throughout history there has never been an easier or better time to start an online business in Saudi Arabia then there is today. With the development and growth of social media everyone is connected together regardless of their income status or geography.
Whether you’re rich or poor you now have the ability to share your skills and connect with people all over the world for free. And for those looking to build an online business, it’s extremely inexpensive and very easy to get started.
In fact, many people have started their own business for less than $100 (the cost of purchasing a domain name and a hosting service). If you can connect with others you can start a business.
There are so many benefits to starting your own online business, but in order to keep things simple I will only list four of the many wonderful benefits here
- Starting an online business is extremely inexpensive
- You have more flexibility in your time
- You have the freedom of choosing your location
- Unlimited income potential
How is the market in Saudi Arabia ?
The very first thing to consider while starting an online business in Saudi Arabia is that you must respect their law and culture. Your product must be legal and acceptable in the kingdom.
Since millions of expatriate works in Saudi Arabia there are two types of people who wants to start online business in Saudi Arabia. One local Saudi citizen and another expatriate. So, there is little different procedure to start online business in kingdom for both.
As an expatriate it is always preferable to get in touch with the local person, so he will help you with legal issues regarding registration & certification. I am very sure that if you do this it is a win-win situation. Otherwise, it is very easy for Saudi nationals.
Saudi nationals can easily start online business and can take care of government procedures as required.
Before going to the start an online business inside Saudi Arabia lets take a look at market statistics about Saudi e-commerce industry,
As per the statistics report about the Saudi e-commerce industry.
- Revenue in the eCommerce market amounts to US$1,715m in 2020.
- Revenue is expected to show an annual growth rate (CAGR 2020-2024) of 2.7%, resulting in a market volume of US$1,909m by 2024.
- The market’s largest segment is Toys, Hobby & DIY with a market volume of US$505m in 2020.
- User penetration is 68.0% in 2020 and is expected to hit 73.5% by 2024.
- The average revenue per user (ARPU) currently amounts to US$72.43.
Example of existing online business in Saudi Arabia
- Souq.com (Now amazon.sa)
What type of online business can be started in Saudi Arabia ?
So, let’s see what types of business can be started in Saudi Arabia
1 An Online Store:
An online product store business can be started in Saudi Arabia. An online storefront contains virtual products which are similar to physical products inventory you have. You can sell your own product’s such as Kids Fashion, Mens Fashion, Sell T Shirts etc.
Using affiliate marketing you can earn commission by promoting other sellers physical product to your online shop.
Top demanded products in Saudi Arabia are,
- Flight tickets
- Mobile phones
- Beauty products
An online store can be started using Shopify with free trial of 14 days.
2 Blog or Website
The blog will be your online space to express and share your ideas. The blog will have a front page, posts, and pages. You have to post informative articles, posts on a regular basis related to your idea. You have to research idea suitable for your blog.
You can monetize your blog with affiliate link or ad sense. Many bloggers earning good revenue through blog monetization
If you really want very easy method to start blog or informative website you should go for Wix website builder. Here you can create beautiful website using smart website builder without coding.
Some examples of blogs in Saudi Arabia
3 Service Website:
This is an online service portal where specific service is offered over the internet. There are many services such as freelancing, content making, web designing, consulting, online training etc which can be provided over online website.
You can start website of your own existing business, In this way you can reach more clients/customers. You have to create beautiful website using wix wesite builder, add some relevant content. Using SEO technique your business can be ranked to the local search query. You will need a good and affordable web hosting service provider to build a website on.
for example, a lower in Jeddah can build his own lawyer firms website. Then he can SEO optimize his website for “lawyer in jeddah” search query.
In another example a Doctor or Hospital can take online appointment request using their own website.