The UAE has emerged as a leader in digital commerce, the 2023 Global Digital Shopping Index has revealed.
The GDSI, which is a study by PYMNTS and Cybersource, analysed shopping ease and customer satisfaction in six countries around the world. The UAE topped the list of 34 digital capabilities that merchants offer, outpacing countries such as Brazil, India, Mexico, the UK, and the US.
The metrics included features like online refunds and returns, using mobile apps for delivery, price matching and using coupons among others.
The third annual study of shopping behavior found that merchants in the UAE improved shopper satisfaction by adding incentives, coupons, and rewards, leading to an 11per cent year-over-year increase in shopper satisfaction.
Merchants in the UAE increased shopper satisfaction by adding incentives, coupons and rewards. The research found that 86 per cent of UAE shoppers were pleased by local merchants adding these features in 2022. UAE merchants’ GDSI score increased from 112 to 124 in that time, adding up to an 11 per cent jump.
According to the report, UAE merchants also managed to shrink the consumer awareness gap. The country emerged as the only nation where consumers were more aware of each feature in 2022 than they were in 2021.
Other parts of the study highlighted India and Brazil as key geographies for increasing e-commerce transactions, which are resulting in better customer satisfaction.
Indian consumers ranked among the world’s most satisfied shoppers. According to the GDSI’s most recent annual report, India now ranks second in the world in terms of shopper satisfaction. Not only is India adding more of the digital features that consumers want, but merchants and payment providers are also doing a better job of promoting these features.
With payment choice remaining the most important feature across all nations studied, local payment types resulted in score increases for India and Brazil. “Paytm is the most popular payment method in India, with 22 per cent of consumers using it to make online purchases and 12 per cent using it to pay in-store.
PIX, Brazil’s national instant payment service, is gaining traction, as 25 per cent of eCommerce shoppers used it, and 7.1 per cent of in-store shoppers used it,” per the study.
The study added that in contrast to emerging markets, longtime GDSI leaders, including the U.S. and the U.K. pulled back in areas like free shipping and returns, and refunds on fraudulent charges.
Shrinking or withdrawing these features lowered scores for the U.K. and the U.S., illustrating the risks of disappointing the three new shopper personas forged during the COVID era, the study concluded.
