Factors Impeding Online Shopping: An Arab World Perspective

Abstract

The purpose of this study is to examine the factors that impede online shopping in the Arab region. This region has witnessed a fast growth in internet usage and offers a lot of potential for online retailing. The study is conducted in Saudi Arabia, which is the largest market in the Arab region. This study investigates the barriers to online shopping in the kingdom of Saudi Arabia. Empirical research is used to determine the difference in the barriers to online shopping by the shoppers and non-shoppers. Results based on a survey indicate that the major factors that impede online shopping are digital concerns, financial security concerns and online store barriers.  Non-shoppers express more profound concerns than online shoppers. The paper discusses the implications of these and makes recommendations. The study provides valuable insights into online shopping in Saudi Arabia that has not been previously investigated. From a practical point, findings of this study will be particularly useful to online retailers, shoppers, financial institutions and telecommunication service providers.