Aramex, Google, PayPal, and ShopGo launch EZStore.me to help offline retailers go online
With 30 million people shopping online today in the Middle East
and North Africa, in a market expected to reach $15 billion by
2015, e-commerce is one of the biggest opportunities in online
business in the region. Yet, the online market is still dwarfed by
offline retail, which is valued at $425 billion.
To make it simpler for offline businesses to go online, four of the
region’s major e-commerce players have debuted a new initiative.
Today, Aramex,
Google, PayPal, and
ShopGo launched EZstore, an
e-commerce solution that combines a customizable e-retail platform
with discounts on payment gateways, logistics, and advertising.
Called a “minimum risk online store,” or a one-stop shop by its
creators, EZstore will offer online retailers a $100 discount on
Aramex logistics, with further competitive rates, a $300 credit on
Google AdWords, along with 13 weeks of dedicated Google support for
new campaigns, in English, French, and Arabic, and three months of
transactions on PayPal free of charge. The platform itself, built
by ShopGo, will be offered at $650 for the first year.
“[EZStore gives] offline retailers an opportunity to very easily
and very seamlessly to go online, leveraging the most specialized
players in this field,” Tarek Abdalla, Google’s Regional Head of
Marketing for MENA, summarized at the press conference.
Mohannad Ghashim, the founder and CEO of ShopGo, presented the EZStore platform during the conference, walking the crowd through the elements of the software and the platform's perks (see below). [Disclosure: Wamda Capital has invested in ShopGo.]
Wamda, which has partnerships and connections to all four
companies, facilitated the partnership. In an opening keynote,
Wamda Chairman of the Board and Aramex Vice Chairman Fadi Ghandour
noted the various challenges facing e-commerce startups, from
tariffs in cross-border shipping to cash-on-delivery, but noted
that the "indicators are good." All the same, "we need more
companies to come out and do what these companies are doing," he
emphasized.
Representatives from all four companies emphasized that the move
was not just to sell more products, but to express the values that
they stand for, regionally and globally.
“It’s very much in our DNA to help small businesses succeed on the
web,” said Abdalla, who admitted in an aside after the press
conference that, while Google has often supported small e-commerce
businesses as they come online, it’s never done anything this large
or formalized in the e-commerce sector.
Francis Barel, the Head of Business Development, PayPal, MENA,
echoed a similar sentiment. “Google and Paypal started as
really tiny companies in California. People tend to forget that we
still have this drive in our DNA. We thought that this was the best
way to get entrepreneurs online. How can we put our money where our
mouth is?” he said, pointing out that those who use EZStore will be
able sell to over 132 million users in 193 countries.
With 110 million people online in the Arab world, of around 400
million total, “We are at an inflection point,” said Habib Haddad,
Wamda’s CEO.
It’s a narrative that many are familiar with, but that doesn’t make
it any less true; despite the myriad
challenges that e-commerce
companies face, it's potentially one of the most lucrative
sectors in the region, one that investors are backing heavily (over
$110 million in total was invested in e-commerce companies last
year, which accounted for 85% of the region’s total investment in
internet startups). The hope is that EZStore will galvanize this
process by removing "the fear factor of the unknown," said Hassan
Mikail, Global Director of e-commerce at Aramex.
How will EZStore be used?
After the introduction to EZStore, members of the crowd grilled
the panelists, asking about the customizability of the platform,
whether it will accept Emirati Dirhams (AED), whether users need a
trade license to use the store, and how many users EZStore’s
creators expect to have.
The answers: the platform will initially offer 32 themes initially,
with another six added every month, said Ghashim.
The platform will charge in US dollars, Barel of PayPal clarified,
although EZStore’s interface will show prices in local
currencies.
Everyone who sells on the store will need a trade license, whether
they register in a free zone or not, Mikail of Aramex confirmed.
It’s up to the merchants to make sure that they comply with local
regulations, said Wassim Kabbara, Google’s Head of Retail for the
Gulf.
Stakeholders are attempting to make the licensing process easier.
“We're in constant contact with regulatory offices,” Mikail of
Aramex assured the group.
When asked about the repercussions should an EZStore retailer offer
counterfeit or contraband goods, Mikail and Barel assured that
background checks and strong customer protection policies are in
place to prevent illegal use or misrepresentation.
And finally, on the topic of market size, Mikail noted that he
would hope to see a few hundred stores come online this year. When
Aramex launched a similar initiative in India, 3,000 to 4,000
merchants signed up, he recalled; the partners hoped that EZStore
would urge similar growth in the Middle East on par with a more
nascent market.
For now, EZStore is focused on the UAE, with plans to expand across
the region. Learn more at http://www.ezstore.me.