Kuwait, e-commerce and logistics
In recent years, Kuwait has witnessed a remarkable surge in digital transformation, leading to a rapid growth in the e-commerce sector.
With the increasing availability of high-speed internet and the widespread use of smartphones, more and more Kuwaiti consumers are turning to online platforms for their shopping needs. So how do you e-trade with Kuwait and what are the logistics?
Why Kuwait?
Kuwait, which is located on the northeast of the Arabian Peninsula neighbouring Iraq and Saudi Arabia, is home to over four million people. Rich in oil beds, it is the fifth richest country in terms of petroleum reserves and the seventh in terms of GDP. 1
Until recently, ‘mall culture’ has dominated the Kuwaiti shopping scene as it has with most of the Arab Gulf, but attitudes are changing. This has been accelerated by the COVID-19 pandemic forcing more people to shop online.
Expatriates constitute two-thirds of the population in Kuwait. High-income Kuwaitis and the wealthiest of the expats are the primary users of e-commerce.2 The UK is one of the top countries that Kuwaiti’s like to do e-trade with, along with the U.S.
- 66th
- largest market for e-commerce
- Hobby & Leisure
- Largest e-commerce sector
- US$1,820.7 m
- Predicated market volume of e-commerce sector by 2027
Stats taken from https://ecommercedb.com/markets/kw/all
The e-commerce landscape
One of the most promising signs for growth in the e-commerce sector in Kuwait is the positive demographics. Mobile and internet penetration rates are high at over 90% coupled with a young population (56% under the age of 35) with high disposable incomes.
Savvy online shoppers in Kuwait are spending more and more on international online platforms, as high internet penetration opens up greater choice and better prices. International shopping is widely considered to offer greater quality products and reliable service than local e-commerce in Kuwait.
Opportunities
The use of social networks is also high in Kuwait across all ages. WhatsApp is commonly used across all nationalities, while Instagram, Twitter and Snapchat are popular among Kuwaitis. Facebook is popular among expats 3. This presents considerable opportunity for launching, promoting and advertising new global products.
Estimated growth in the e-commerce industry up to 2021
Kuwait e-commerce market
CAGR 14.28%
Logistics
Kuwait has a sophisticated and efficient e-commerce industry and to compete effectively it helps to be able to offer cost effective and timely shipping options. The easiest way to provide reliable and efficient delivery is to partner with a trusted e-commerce shipping company.
To ensure a seamless buying experience and reliable delivery times for Kuwaiti buyers it is a good idea to consider calculating and displaying all local taxes and duties up front. This involves assigning relevant HS codes to all your products and then using those to calculate the taxes and duties that need to be applied to a specific product. Your shipping partner can also help with this.
The essentials
| Transit Times | 4-7 working days |
| Maximum Dimensions | 120cm x 60cm x 60cm |
| Maximum Weight | 30kg |
| Maximum Container Value | N/A |
| Low-Value Limit | 1,000 KWD |
| Duty | Variable based on product; Applicable on orders over 100 KWD |
Good to know
The top online payment methods in Kuwait include prepaid cards, e-wallets and credit cards. Online shoppers tend to use their preferred or trusted methods of payment during checkout, so it’s a good idea to provide these.
Mobile e-commerce now makes up a significant proportion of Kuwait e-commerce market, so a good shopping experience should include mobile options. Considering mobile optimisation in your strategy will help to secure loyal custom.
What our experts say:
“Kuwait is an emerging consumer market with a growing e-commerce sector. Being a part of this digital change is exciting right now.”
Ben Bagnulo, CEO, SAMOS.