Flextock: An Exceptional Success Journey in E-commerce in Saudi Arabia during 2023
Flextock, a leader in e-commerce solutions in the Middle East, has achieved a remarkable journey of success during the year 2023. Benefiting from the growth of the e-commerce sector and the booming market in Saudi Arabia, Flextock made significant contributions in supporting the growing e-commerce landscape in the Middle East and North Africa region. Statistics indicated that e-commerce sales in Saudi Arabia reached about 13.71 billion dollars by the end of 2023. The sector’s annual growth is expected to reach 14.37%, with the e-commerce market size reaching 23.46 billion dollars by 2027.
Flextock’s successes were particularly evident during the White Friday offers and the Riyadh season in 2023, where the platform achieved a threefold increase in its online sales, compared to a twofold increase in sales for other e-commerce companies. Thanks to its machine learning-based algorithm, Flextock ensured fast and accurate order delivery, anticipating high-demand inventory units. This strategic approach contributes to reducing potential losses for traders in the Kingdom to less than 1%, compared to the prevailing rate of 3-5% in the sector.
E-commerce platforms in the Kingdom are witnessing rapid growth, in conjunction with the increasing consumer confidence in online services, the high proportion of youth in the population, and widespread internet use among 98% of the Kingdom’s population. In light of Saudi Vision 2030, which aims to diversify the economy, the Saudi government is continuously working to enhance the digital transformation journey. This is reflected in the increased use of mobile phones for online shopping among consumers, supporting the overall growth of the sector.
Flextock strives to keep pace with the rapid growth of the Saudi digital economy, where the number of users is expected to exceed 20 million by 2030. The company’s efforts are focused around its machine learning algorithm, capable of accurately predicting high product demand and effectively estimating stockout rates. This benefits all its commercial partners through increased inventory turnover and accelerated delivery times of less than three days, compared to the industry standard of more than three days.
Commenting on this topic, Mohamed Masad, CEO of Flextock, said: ‘Our leading strategy focuses on supporting the growth of traders in Saudi Arabia and plays a fundamental role in enhancing our company’s presence. This ensures our mutual success with our commercial partners. In light of the unprecedented demand for White Friday offers and the Riyadh season, the need for flexible and fast operations became clear. In response to this qualitative shift in the sector, our focus is on the speed of product delivery and adopting a diversified methodology that ensures product availability during peak seasons, thereby simplifying the process for traders. We recognize that connecting with consumers goes beyond social media platforms. Therefore, we leverage various channels to provide an easy and flexible shopping experience on a large scale, enabling us to keep up with the growth and preferences of shopping platforms in the region.’
The e-commerce sector in Saudi Arabia is undergoing significant development, with consumers relying on social media platforms such as Facebook, TikTok, Snapchat, and others for purchases. Flextock has taken strategic measures to diversify its sales channels to avoid the continuous increase in advertising costs, allowing consumers to rely on different outlets apart from traditional platforms. This has led to a 35% increase in merchant orders. The company boasts a diverse user base and combines small and large brands to ensure customer needs are met during peak seasons and throughout the year.
