The New Middle East Consumer Market

The online and retail landscape in the Gulf region is rapidly adopting vertical transformation. As consumer behavior continues to change post covid-19, the GCC countries present themselves as a lucrative market for high growth Indian D2C Brands.
With the rise of conscious population, high smartphone penetration, and increasing comfort with eCommerce, the Gulf region is now one of the most promising markets for ambitious Indian brands.

The UAE’s e-commerce market has experienced significant growth in recent years. In 2023, the market size reached AED 27.5 billion, with projections indicating it will surpass AED 48.8 billion by 2028.

The New Middle East Consumer Market
The New Middle East Consumer Market

E-Commerce Market Size in the Middle East: Key Insights 

If you’re looking to tap into the fast growing E-Commerce market in the GCC, now is the time to act! This region, which houses Saudi Arabia, Kuwait, the UAE, Qatar, Bahrain, and Oman, is steadily emerging as a powerful force in the global E-Commerce landscape. 

Key E-commerce Growth Projections in the GCC

US$ 50 billion 10.95%
Total Revenue by the end of 2025 CAGR between 2023-2026

How Indian D2C Brands Can Benefit from the Growing Ecommerce Market in the GCC

Market Share

With nearly 60% of the population already shopping online, there’s significant room to grow your customer base and find a niche for your products.
The New Middle East Consumer Market
The New Middle East Consumer Market
The New Middle East Consumer Market

Government Support

The GCC is setting up a favorable environment for E-Commerce through various initiatives such investments in logistics, smart warehousing, and 5G technology to enhance efficiency, all while the adoption of digital payment solutions and secure digital identity systems streamline transactions.

The Gulf region is set for continued growth in the E-Commerce space, with strong demand, supportive government policies, and a tech-forward population driving expansion. By entering the market now or optimizing your existing online presence, you can position your brand for success as the region’s eCommerce market surges.

Tailored Solutions + Tax-Friendly Business Zones = Go to brand for the global customer

 

Most Popular E-Commerce Product Categories in the GCC

The New Middle East Consumer Market

The GCC is positioned as a high-potential market for Indian D2C expansion—whether through Shopify storefronts, marketplaces like Amazon UAE and Noon, or even retail partnerships.

 

For ambitious Indian eCommerce brands looking to expand into the UAE and the wider GCC region, the initial decision on choosing the right sales channel can help in determining the long term success of the brand. 

The Big question – “Where should you sell?”

Should you launch in retail stores through distributors or resellers?
Should you list your products on popular online marketplaces like Amazon UAE or Noon? OR
Should you build your own direct-to-consumer (D2C) Shopify/WooCommerce store?

Each of these channels and go-to-market strategies offer a distinct path to scale and come with their own set of operational complexity. 

This choice becomes even more crucial and strategic in the GCC Region, where consumers expect fast deliveries, localized experiences, and multi-channel convenience

Metric

Amazon UAE

Noon.com

Shopify (D2C)

Total Active Sellers

20,000+

15,000+

NA (self-hosted platform)

Indian Brand Presence

High

Growing

Growing

Estimated GMV

$740M (UAE, 2024)

$1.37B (by 2026)

Brand-specific

Daily Visitors / Traffic

2M+

4M+

Owned Traffic

Top-Selling Categories

Electronics, Beauty, Fashion, Home & Kitchen

Fashion, Electronics, Lifestyle, Wellness

Clean beauty, Ayurvedic wellness, Boutique fashion, Sustainable goods

First-Party Data Access

Limited

Limited

Full access

Marketing Control

Limited

Limited

Full Control

Fulfillment Models

FBA / Merchant-fulfilled

Noon Express / Seller-fulfilled

Brand-managed or via 3PL (like Locad)

Payment Terms

14–30 days

15–20 days

Instant

Platform Fees

10–20% commission + listing fees

12–25% commission + fulfillment fees

Shopify plan + payment gateway fees 

Logistics & Inventory Control

Low

Mid

High


As an Indian brand looking to grow in the new Middle East market, the right omni-channel sales strategy partnered with an efficient  logistics and fulfilment partner like Locad, can help test demand, build brand recall and scale profitably.

Make logistics your growth lever with Locad

Omni-channel deep dive

No one marketplace fits it all. The choice should be a solid combination of pros and cons that fit your business use case and long term requirements.

Key Factors
 RetailMarketplacesD2C Website
Pros
  • Local Visibility
  • Brand Repute
  • In-Store Experience for impulse purchases
  • Fast go-to market 
  • Built in traffic 
  • Marketplace offered fulfilment & storage options
  • Full brand control 
  • Access to real time data
  • Full control of customer data 
  • Higher margins
Cons
  • High capital investment
  • Fixed capital costs eating into margins
  • High platform fees
  • Strict Marketplace SLAs affecting visibility 
  • Lack of branding opportunity 
  • High marketing investments
  • Extra Logistics management 
Best suited for
  • Premium Products
  • Cash-positive brands
  • Market testers 
  • Low infra costs 
  • Building dedicated audience
  • Branding first

The channel brings visibility. Logistics determines Customer Experience 

 Whether you’re selling in stores, or expanding through marketplaces, or building a brand through a D2C website, your ambitious brand needs a local fulfilment and warehousing partner like Locad to pick, pack, and ship to your customers.

Locad boasts of 25+ Fulfilment Centers globally, with 2 Fulfilment Centers in the UAE and 1 Fulfilment Center in the KSA. 

98%18%99.8%
Same Day Order FulfillmentAverage rate saving shipping costInventory Record Accuracy

With Locad, get access to fulfilment solutions for all sales channels –  B2B distribution for retail, Replenishment for Amazon FBA/ Noon FBN, or Shopify/WooCommerce order fulfillment.

Learn more on how Locad can work for your Indian e-commerce brand

Make logistics your growth lever with Locad

Scale your E-commerce Brand in the GCC with a winning strategy 

 

Successful e-commerce brands in the GCC are not choosing, they are layering, strategically!

A hybrid go-to-market strategy allows your e-commerce brand to adapt and settle in the foreign market with ease, while also being cost-effective and customer centric. 

If your Indian D2C brand is newly launched in the GCC market

Test the market with Marketplaces
(Amazon UAE/ Noon)

Demand
Increases

Launch a branded D2C website via Shopify or WooCommerce + Offer discounts for loyal customer base

Demand increases from multiple touchpoints + Social/UGC success

Scale into Retail stores based on your category (Carrefour, Centerpoint etc)

 

If your Indian D2C brand already has a strong demand in the GCC market

Launch a branded D2C website via Shopify or WooCommerce +  Strong Social media presence

Demand
Increases

List on Marketplaces and qualify as an Express Shipper/Prime Seller 

Set up in trade shows + Demand Increases

Scale into Retail stores based on your category 

Before layering your omni channel strategy, brands must analyse and forecast their demand to justify cost investment in building a branded D2C website – which should offer a 360 degree brand experience to a customer. 

When’s the time to layer to the next channel?

 

If piloting with Marketplace

  • What’s your organic visibility on the marketplace? Are you on Page 1 or Page 5?
    Ideally, your brand should be in the top 10 search results on Page 1
  • What’s your Average Order Volume (per day)?
    Is your daily order count consistent or fluctuating? Target for consistent 10 orders per day
  • How many reviews do you have on the marketplace?
    Customers value transparency and customer advocacy. Aim to increase the number of reviews that average your ratings to 4.0-4.5 instead of few ratings with a perfect 5.0 score.

If you’re already there – now’s your time to make the layer to a branded D2C website to deliver a 360 degree experience to your customers. 

If piloting with D2C Website (Shopify/WooCommerce)

  • What’s your monthly website traffic?
    Are you seeing consistent organic or paid traffic? A steady flow of 5,000+ monthly sessions indicates growing awareness and potential for broader distribution.
  • How strong is your conversion rate?
    If your conversion rate is 1.5–3% or higher, it signals that your product and pricing resonate with the customers and high-traffic marketplaces can further that.
  • What’s your repeat customer rate?
    If 20–30% of your orders come from returning customers, it means your product is sticking. Marketplaces can now be a volume lever, not just a testbed.

If you’ve successfully checked out these parameters – add the next layer! Marketplaces are a great enabler for increased volumes.

 

Trusted Fulfilment Partner for Indian E-Commerce Brands in the Gulf

Built for ambitious Indian E-commerce brands looking to scale in the Middle East. To help accelerate growth for e-commerce brands, Locad offers Cloud Supply Chain as a Service, helping brands elevate the standards across inventory management, order processing, shipping and last mile through its cutting edge fulfillment solutions.

Scale your E-commerce Brand in the GCC with a winning strategy 

 

Successful e-commerce brands in the GCC are not choosing, they are layering, strategically!

A hybrid go-to-market strategy allows your e-commerce brand to adapt and settle in the foreign market with ease, while also being cost-effective and customer centric. 

If your Indian D2C brand is newly launched in the GCC market

Test the market with Marketplaces
(Amazon UAE/ Noon)

Demand
Increases

Launch a branded D2C website via Shopify or WooCommerce + Offer discounts for loyal customer base

Demand increases from multiple touchpoints + Social/UGC success

Scale into Retail stores based on your category (Carrefour, Centerpoint etc)

 

If your Indian D2C brand already has a strong demand in the GCC market

Launch a branded D2C website via Shopify or WooCommerce +  Strong Social media presence

Demand
Increases

List on Marketplaces and qualify as an Express Shipper/Prime Seller 

Set up in trade shows + Demand Increases

Scale into Retail stores based on your category 

Before layering your omni channel strategy, brands must analyse and forecast their demand to justify cost investment in building a branded D2C website – which should offer a 360 degree brand experience to a customer. 

When’s the time to layer to the next channel?

 

If piloting with Marketplace

  • What’s your organic visibility on the marketplace? Are you on Page 1 or Page 5?
    Ideally, your brand should be in the top 10 search results on Page 1
  • What’s your Average Order Volume (per day)?
    Is your daily order count consistent or fluctuating? Target for consistent 10 orders per day
  • How many reviews do you have on the marketplace?
    Customers value transparency and customer advocacy. Aim to increase the number of reviews that average your ratings to 4.0-4.5 instead of few ratings with a perfect 5.0 score.

If you’re already there – now’s your time to make the layer to a branded D2C website to deliver a 360 degree experience to your customers. 

If piloting with D2C Website (Shopify/WooCommerce)

  • What’s your monthly website traffic?
    Are you seeing consistent organic or paid traffic? A steady flow of 5,000+ monthly sessions indicates growing awareness and potential for broader distribution.
  • How strong is your conversion rate?
    If your conversion rate is 1.5–3% or higher, it signals that your product and pricing resonate with the customers and high-traffic marketplaces can further that.
  • What’s your repeat customer rate?
    If 20–30% of your orders come from returning customers, it means your product is sticking. Marketplaces can now be a volume lever, not just a testbed.

If you’ve successfully checked out these parameters – add the next layer! Marketplaces are a great enabler for increased volumes.

 

Trusted Fulfilment Partner for Indian E-Commerce Brands in the Gulf

Built for ambitious Indian E-commerce brands looking to scale in the Middle East. To help accelerate growth for e-commerce brands, Locad offers Cloud Supply Chain as a Service, helping brands elevate the standards across inventory management, order processing, shipping and last mile through its cutting edge fulfillment solutions.

One-click integration with your preferred marketplace and online store
Send your shipment to our distributed warehouse network
Start receiving orders. Sit back and experience automated order processing
Locad picks, packs, and ships the orders through your preferred Last Mile partner

Store, Pick, Pack, and Ship with Locad Omnichannel Fulfillment

 

As a full-stack 4PL, Locad has the right capability to help your Indian E-Commerce brand, regardless of the marketplace you choose to scale through. 

  • Locad’s Order Management System seamlessly integrates with your D2C Website/ERP systems to ensure real-time order processing, inventory tracking, and multi-carrier shipping for effective last mile deliveries.

  • Locad integrates with popular Marketplaces offering 100% SLA adherence, prep and replenishment support, and local last-mile expertise

  • Locad manages your B2B shipments for retail and pullouts, from barcode labeling to distribution scheduling.

Experience our team’s Local know-how of the gulf region to fast track your success in the Middle East E-commerce market.

Partner with Locad to be begin your ecommerce growth journey in the GCC Region

Exclusive benefits to ace your e-commerce game this 2023 with Locad’s desk calendar!