Essay on SOUQ: World's Biggest E-Commerce Company in Arab Region

Paper Type:  Essay
Pages:  4
Wordcount:  952 Words
Date:  2023-05-30


SOUQ Company is one of the biggest e-commerce companies in the Arab region. Just like Amazon, SOUQ operates online as an intermediary between a consumer and sellers. The company is based in Dubai, the United Arab Emirates, where it was established in 2005. It was created as an auctioning company and was differentiated into online marketing in 2011 by Ronal Mouchawar and Samih Toukan. SOUQ Company serves more than 35 million customers who visit the website to check out the full range of products the company has to offer. SOUQ has a variety of 500 unique products provided in 20 categories (Roberson, 2014). Products include clothes, perfumes, jewelry, and baby clothes, among others. Overall, this paper discusses the SOUQ business model and the e-commerce strategies practiced by the company.

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SOUQ Business Model

The company has differentiated its business such that it deals with three main groups. The sellers are the suppliers of the industry who bring their items to the company. The second group is the company itself which may refurbish products and rebrand them under the company name. Once they pay the supplier, the goods become theirs entirely. Therefore, they advertise the products on the website and wait for consumer responses (Lader &Traver, 2016). They set a higher than what they acquired it for profitability. In the end, both sellers and company profit from the sale while the consumer receives the right quality products delivered in good time. The business has set its website such that the consumers can track down their deliveries and can choose from online payment to pay on delivery.

The business model is divided into two, consumer offerings and financials. The company offers a wide range of products that include fashion, clothing, perfumes, electronics, and beauty. The variety of products ensures that it meets the consumer's wants and needs. Other than being a third party seller, the company operates as a retail store just like Amazon. Most people would refer to SOUQ as the Amazon of the Middle East. The company has a network of more than 75,000 traders who love company services (Larras, 2019). SOUQ Company has a safe and suitable online shopping setting that allows the buyers to make online payments or pay upon receiving the items. The company also will enable purchasers to track down the deliveries, make complaints, and review the effectiveness of the product. The company has offices in Kuwait, Egypt, and Saudi Arabia. It also has technical development offices in Jordan and has employed over 2500 people.

The company adopted the Amazon business revenue model of pay and delivery. However, significant concerns arise from the use of credit cards in which most people are not conversant with. Middle East countries do not recognize the use of credit cards hence the need for prepaid cards. The company has made the tickets available at brick and mortar stores, which the consumers purchase and redeem online.

E-Marketing Strategies

The company's marketing strategies are based on value proposition and customer segments. The company has divided its markets into two sections. First, it is connected with businesses that need to sell their products, which includes merchants, small and medium enterprises, distributors, and brands (Hasan &Morris, 2017). Second, it is connected with customers based in the Middle East region willing to bury the products. Therefore, any decision made revolves around positive vendor relations and consumer satisfaction.

Another e-marketing strategy used is focusing on the value proposition. There are four aspects of value. By assuring consumers of quality value, SOUQ naturally promotes its products. First, the accessibility of the platform makes it easier for vendors to use (Hasan, 2016). The company makes advertismen6s for all the products brought to them. Thus, the merchants do not need to develop marketing skills to operate on; they stay loyal, a strategy known as differentiation. The second aspect is the flexible payments. By reducing risks, the company has Sbarred penetration of credit or debit cards by initiating cash on delivery systems. In the end, the company ensures a win-win situation for itself and the client. Risk reduction is another aspect in which consumers are protected from fake goods. It has initiated security on its networks, mitigating the possibility of illicit use of IP addresses. Lastly, it has an energetic band that reassures online that buying online is a risk.

Importantly, the company has a flagship website and app that helps it market its products to potential clients. The company also generates customers through the traffic created by affiliate customers. The company uses its website to maximize the value of buying and selling. The delivery systems used are unlike traditional postal deliveries. The company has enforced courier services that consumers can easily trace. Therefore, the leading marketing strategies used by the company include a website, an app, a value proposition, consumer segmentation, and reliable delivery systems.


Hasan, L. (2016). Key design characteristics for developing usable E-commerce websites in the Arab world. Informing Science: the International Journal of an Emerging Transdiscipline, 19, 253-275.

Hasan, L., & Morris, A. (2017). Usability problem areas on crucial international and critical Arab E-commerce websites. Journal of Internet Commerce, 16(1), 80-103.

Larras, S. (2019). Engaging the Arab female digital consumer: Is SOUQ. com seizing the opportunity in Saudi Arabia? (Doctoral dissertation, Dublin Business School).

Laudon, K. C., & Traver, C. G. (2016). E-commerce: business, technology, society.

Roberson, C. (2014). As the Middle East e-commerce market grows, what are the opportunities for logistics providers?. Transport Intelligence.

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Essay on SOUQ: World's Biggest E-Commerce Company in Arab Region. (2023, May 30). Retrieved from

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