ABOUT OUR PLATFORM
We have created an online e commerce b2c website concept which has been created to link consumers directly
to their desired stores. Through Tundamart a customer can order products directly from their favourite retail stores
and have them picked up by our shoppers and delivered directly at their doorsteps.
All stores to be registered on our website are to be registered with KYC identification and a trading license number
so they are legally registered stores. This insures customer security and also takes out competition from unlicensed
sellers. Stores will also be given a dashboard where they can track their sales and customers and also a profile where
they can update their information, location and even upload links
Therefore, the potential project simplifies shopping experience for the consumers, allowing them to get access to all
the information and details about the different products of different stores, without even visiting them, saving their
time and efforts and even have the delivered by our shoppers direct at their doorsteps.
The Vision
The company's vision is to make local shopping as easy and convenient as it is possible for the consumers, and
create extra opportunities for local retailers.
The Mission
We are creating a technology start-up with the mission of making buying goods faster and more convenient by
finding all your desired products in one place and from a range of stores. It combines the benefits of traditional
shopping with the convenience of online shopping. We provide the consumers with a wide range of items from
numerous local retailers, filtering them according to price, size, colour, brand, manufacturer etc. The shoppers have
the possibility to reserve the desired item and pick it up later in the shop, or order it online and receive it within 1 to 2
business days. The company aims to ensure long-term profitability and growth due to innovation, uniqueness, social
awareness, and high-quality service. Shopping should be a fast, easy and smooth experience, not distracting us from
life real goals and objectives
BUSINESS FRAMEWORK
THE
E-COMMERCE
INDUSTRY
MODE OF
OPERATION
SWOT
ANALYSIS
Marketing
strategy
Risk management
FORMALITIES
INVOLVED
OPERATIONAL
SYSTEM
MARKET STUDY
HR
STRUCTURE
Financial forecast
PRODUCT
STRATEGY
TECHNOLOGY
OVERVIEW
THE E-COMMERCE INDUSTRY
The UAE e-commerce market is on an upward trajectory, driven by the demand for online purchasing by a young
tech-savvy population. With the country comprising a high percentage of digital native millennials who are at ease with
technology, the expectation is for seamless and convenient online purchasing. Merchants have striven hard throughout the
2010s to meet the ever-increasing consumer demand for e-commerce and have recognized the need for online presence to
ensure business continuity and longevity.
While traditional bricks and mortar retail is still very strong in the UAE, these retailers have acknowledged the need for a dual
face to face and online strategy with the focus on customer experience. These are complemented by e-commerce “pure
play” retailers who have been increasing consumer product choice, both organically and through partnerships, and smaller
retailers coming online facilitated by online commerce platforms and payment gateway capability.
Both demand and supply sides are supported by logistics infrastructure that is on a-par with some of the most developed ecommerce markets in the world.
In addition, e-commerce start-ups continue to attract significant investment, supported by government policies promoting
innovation and a cashless economy, all resulting in enhanced consumer trust and a thriving e-commerce market in the UAE
poised for significant growth. The COVID-19 pandemic has further accelerated retailers’ innovation and digital transformation
plans, in response to the sudden consumer demand to shop online. The step change in demand across the first half of 2020 is
sure to have a lasting effect over the next few years, as many consumers and merchants have shifted consumer behaviour
and gained confidence in online purchasing during this time.
In this fast-growing market, when e-commerce is becoming the norm, there is still significant opportunity to grow and shape
consumers’ path to purchasing products online.
FORMALITIES INVOLVED
Trademark Registration
Trademark registration protects the brand name, domain name, logo, slogan, etc. used by the ecommerce
business and prevents anyone from using it without permission or license.
Tax Registration
Tax registration for GST return filing is mandatory for all ecommerce businesses in Dubai
Shop and Establishment Registration
We will also be required to obtain the State regulated Shop and Establishment registration certificate to run
a backend office.
Vendor Agreements
Vendor agreements between our company and its product vendors laying down the conditions relating to
supply of goods, prices, quality standards, etc.
Service Level Agreements
Service level agreements define the terms and conditions relating to any business services availed
by the ecommerce retail store, such as logistics, internet services, etc.
Employment and HR Documents
Employment agreement lays down the terms of employment for the business’s employees and staff; HR
Documents include HR policies and procedures relating to code of conduct, promotions, complaints, appraisals,
etc.
Terms of Use
Our mission is the reason why our company exists. We want to make the shopping experience more
dynamic and simple where someone can virtually shop from stores of their choice and have
their products delivered in time.
Privacy Policy
The Privacy policy lays down the manner in which user or visitor information would be manage by the company
Disclaimer
A disclaimer frees the business from any liability arising out of content posted by any user or third party.
Refund, Return and Cancellation Policy
This policy lays down the conditions relating to order refunds, product returns and order cancellation by
customers.
TECHNOLOGY OVERVIEW
The key feature of an ecommerce business is undoubtedly its digital platform. We have built the platform to be
able to handle bulk traffic and be compatible with web browsers such as Mozilla, Firefox, edge, chrome, etc., and mobile
operating systems such as iOS and Android. We also plan on our ecommerce business website having complete data
backup on an external server as well for full-backup
1. Our plan is the UI/UX Designs creating
a user-friendly and attractive
ecommerce platform that allows a
seamless buying experience
3. We plan on building Mobile Application tools
includes programming languages, and suites
for developing the mobile app such as: For
iOS App, programming languages like
Objective-C, Swift; toolkit like Apple Xcode;
iOS SDK for application programming
interface. For Android App, programming
languages such as Java, Kotlin; Android
Studio & Android Developer Tools as toolkits;
Android SDK for API integration.
2.
UX/UI
WEBSITE
STACK
MOBILE
APPLICATION
PAYMENT GATEWAY
We plan on designing the Website Slack
involving frontend and backend
development tools such as:
• Programming languages such as JavaScript,
PHP and Python for the backend, and
• HTML, JavaScript, and CSS for the frontend
4. We plan on incorporating a Payment
Gateway to receive payment for
online purchases, such as gateway
with ability to receive payments
through Cash on Delivery, NEFTs, UPI,
debit and credit card payments like
flutterwave and also mobile payments.
SWOT ANALYSIS
Strengths
•
•
•
•
Lower Maintenance Costs
24*7 Store Accessibility
Digital-savvy consumers and consumer readiness in the region support further growth of e-commerce going forward
Low online penetration rates compared to global leaders like China imply there is still significant room for growth of online
sales compared to store-based retailing
Weaknesses
•
•
Online payment gaps remain as consumers still prefer cash on delivery, ultimately resulting in lower trust by consumers for
online purchases.
Delivery and logistics challenges continue to hamper growth in online retailing, mainly relating to the speed and cost of
delivery in the region.
Opportunities
•
•
•
•
•
Connectivity to a large customer base
Barriers to location are removed
Increasing competition in the online space will likely lead to further investment by major players in an effort to maintain their
dominant position
Growth of third-party delivery services offers opportunities for companies to reach a wider audience both locally and
globally.
Greater acceptance of online platforms is expected to reshape the way people shop, with many returning to online
shopping after the Covid 19 outbreak.
Threats
•
•
•
Hit or miss digital marketing
Highly competitive business sector
E-commerce players are under pressure to take more control of their delivery services to ensure consistent, timely deliveries
and a higher rate of returning consumers.
HR STRUCTURE
Our plan is to have an experienced and skilled Human Resource team that can efficiently handle the digital
operations as well as on-field activities.
We plan on hiring subject matter and industry experts from different fields as team heads for core departments such
as product management, technology, sales, marketing, logistics, finance, etc., and establish its internal HR
department to recruit experienced individuals who possess subject matter knowledge.
BOARD OF DIRECTORS
This will be the CEO, other executives and investors who will be
responsible for the total control and quality of operations.
TEAM LEADERS
Here we will have PR and marketing management in charge of
establishing partnerships with suppliers and contract agreements,
establishing cooperation with influencers/bloggers, finance issues and
accounting
ASSOCIATES
These will mainly be store ownersDBBBB
and suppliers as well as sponsors and
partners that we will be working with.
SUPPORT STAFF
IT Support will be in charge of maintenance and future developments,
Customer Support Specialist will be in charge of settlement of any issues
of the customers. Supplier Relationship Specialist will supervise the quality
of suppliers' work as well as deliveries.
DELIVERY STAFF
Most of the delivery staff will be outsourced and will not be fulltime
employers of the company but will however get paid depending on the
number deliveries thy make.
BOARD OF
DIRECTORS
TEAM
LEADERS
ASSOCIATES
SUPPORT STAFF
DELIVERY STAFF
PRODUCT STRATEGY
This could be described as systems and processes enabling the organisation to deliver the service.
Three major categories during the process can be distinguished:
• Pre-sales process:
communication with suppliers, cooperation with suppliers, creating and updating their portfolio, ensuring availability of requested
goods, quality of goods;
• Sales process:
user friendly ordering process, security during transactions performed on the website, security of data collected and stored from
the customers, efficient response to customers' requests and enquiries, ensuring prompt and reliable delivery, monitoring the
quality of suppliers' work
• After – sales process:
prompt attention to complaints, courtesy calls.
Starting as a small company, we will execute a quite flexible approach of process.
We will enrich the experience of the customers by engaging them in the interactive community of shoppers and selected
trendsetters, who will give tips and share major trends in their articles, prompting community discussions and different interactive
competitions.
We also plan on providing the following features;
• Searching products by model, type, manufacturer, price etc.
• Searching products by browsing through a number of stores
• Filtering suggestions according to specifications
• Visibility of the remaining stock (sizes, colours, locations)
• Providing store locations on a map, this is a feature we plan on coming up with later
•
Possibility to reserve the product or order online and exchange at the local shop, we also plan on having this feature on later
•
Computer/tablet/smartphone mode
• Quick deliveries within 1 to 2 business days
• 24 hour shopping experience
OPERATIONAL SYSTEM
Purchasing Process
There will be no subscription fee to open up a store and set up is completely free, however we will charge a 5% commission fee for
grocery sales and 10 % for all other sales
When the customer orders the product online from the stores there will be a few options of payment.
The payment procedure will be easy and safe, as it is one of the key requirements for customers to make purchase in the internet.
We will offer three kinds of payment opportunities:
•
Payment with PayPal, which is considered one of the easiest and safest methods of online payments
•
Payment with credit/debit card/ Visa
•
payment with cash at the time of receiving goods.
Delivery
We will be responsible for the delivery of the products through outsourced shoppers, but there will be generally guidelines applied:
• There will be fixed delivery charge, however it could adjusted depending on the size of the product and distance to delivery
point.
• Orders will be delivered within 1-2 business days
• Orders done till 12 am, will be delivered on the same day, afternoon and evening orders will be delivered on the next day.
• Deliveries will be mainly done during business days, though weekend delivery is possible, if coordinated and confirmed with the
suppliers
Returns
In case the customer wants to return their order, we are not responsible for any refunds or returns unless the product is faulty,
misplaced or isn’t the product that the customer ordered for.
However if a customer has any further inquiry or complaint, they can contact the store they purchased from and show them the
purchase order. If things aren’t resolved, they can leave a review or contact our team so we can contact the supplier directly and
resolve the issue.
The Internet and E-commerce
penetration in the Middle East
90% of population using the internet Countries from the Middle
East, such as the UAE, Saudi Arabia, Oman and Kuwait, have
relatively high internet penetration rates, with more than 90% of
the population using the internet.
70% of Middle East population use mobile devices to access
the internet This parameter discloses an even bigger difference
between countries in the region.
The UAE is a clear leader in this category, with 84% of its
population using mobile devices for browsing, e-commerce or
other similar activities, followed by Turkey at 74% and India at just
17%.
5% of total Middle East retail sales are through e-commerce.
E-commerce penetration in the Middle East has almost doubled in
2020 compared to 2019 (from 3% to 5%) on the back of COVID-19
accelerating digitalization.
E-commerce in the Middle East is growing at a faster rate than
countries like China as retailers accelerate the shift to online,
further encouraged by digital-savvy populations.
RISK MANAGEMENT POLICIES
Management and mitigation of risks is critical for business
since it is susceptible to an array of risk factors. We plan on
laying down an internal and external policy or strategy
which is essential to counter any such situations
TYPE OF RISK
RISK MANAGEMENT PLAN
TECHNOLOGY
DATA ENCYPTION
AND BACKUPS
ACCOUNT FRAUD
FRAUD
DETECTION API
VENDOR DISPUTES
LEGAL
CONTRACTS
CONSUMER
DISPUTES
USAGE POLICIES
MARKET STUDY
The UAE’s e-commerce sales were projected to hit $16 billion in 2019. Currently, the UAE is considered the most
advanced e-commerce market in MENA, with a penetration rate of 4.2%, compared to advanced western markets such as the UK
(15.6%), U.S. (12.3%) and France (10%)6 . Its consumer demographic includes a young internet-savvy population, with high social
media usage. These people are more likely than some of their cohorts globally to spend time online.
E-commerce companies, whether they are online marketplaces, domestic retailers, or cross-border merchants, are tapping into
this high latent demand, disposable incomes, and digital penetration that is favourable for the sector.
UAE consumers are among the most connected in the world, with some of the highest levels of internet, smartphone, and social
media penetrations globally; much higher than most of the mature e-commerce markets7 . The internet plays a critical role in their
path to purchase – discovery, research, and actual purchase. Regardless of whether they shop online or in-store, UAE consumers
are heavily influenced by their online activities.
The UAE retail industry - classified into store and non-store sales, which include e-commerce – was estimated at $55 billion in 2018
and forecast to rise to $63.8 billion by 2023. The e-commerce segment is classified under non-store retailing, which encompasses
online shopping, direct selling, mobile internet, social media, and home shopping. The non-store category is forecast to grow by
78% from 2018 to 2023 .
Additionally, developed logistics infrastructure, financial account penetration and support for digital payments, increased
consumer trust in online transactions, increased retailers’ adoption of e-commerce platforms and government policies which
support innovation and entrepreneurial activities are all supporters for e-commerce growth in the UAE.
At first, the demographic criterion age of the end users will be analysed, as well as the geographic criterion type of area and social
criterion class. The conclusions are based on the results previously obtained from our research as well as on the information
provided by online surveys
Age - According to the survey the largest part of the consumers (70%) are young males and females aged 19-24, 26-35 years old.
People aged 36-45 represented should also be considered since they represent 21%. Consumers aged 46-55 years old represent a
small percentage of 8%. According to our research, the highest proportion of internet users is aged 16-24, 25-54 years old.
Area - At first the project will be targeted at the consumers in Dubai area. Later, with gaining more popularity and
stability, other U.A.E cities will be considered (Abu Dhabi, etc.).
Social class - Obviously, to take advantage of any kind of service it is necessary to have funds of it, thus unemployed
people and people with low income tend to represent a relatively small percentage of the end users. Still, the service provided
by the project allows to compare different items according to the price criterion, and therefore can be beneficial for those
consumers looking for a deal or wishing to save money.
In conclusion, the target-market to which the company will appeal are middle and upper-middle consumers in the U.A.E area,
aged 19-55, due to the little interest shown by people above 55 years old in this service. Still the demographic pattern tends to
change over time, since the population is ageing each current year. Therefore, in future the company will include the older age
bracket in its target by making sure that the current target-market is loyal to the company and satisfied with the services.
MENA e-commerce per category as a percentage of total E-commerce (2020)
8.4
19.2
3.6
1.9
MEDIA PRODUCTS
HOMEWARE AND HOME FURNISHING
CONSUMER HEALTH
CONSUMER ELECTRONICS
BEAUTY AND PERSONAL CARE
29.3
21.9
CONSUMER APPLIANCES
HOME CARE
FOOD AND DRINKS
APPAREL AND FOOTWEAR
6.7
OTHERS
6.7
1.5
1.4
MARKETING STRATEGY
Marketing is an important component of business growth as it can boost brand recognition and sales.
Through marketing customers are given information that can motivate them to purchase a product or service.
We will be new to the market, therefore being in the initial phase of the life cycle of the brand.
During this phase, the emphasis on marketing should be put on PR activities and community creation in order to generate
awareness and build the positive image and attitude among the parties, benefiting from the service. The main message in
marketing activities will be according to the positioning, mission and vision of the company, which has been described before,
therefore emphasizing the benefits of traditional shopping with the convenience of online shopping in one single simple solution.
We will promote our brand using traditional advertising channels, such as TV, newspapers or radio, print materials and billboards as
well as using modern channels like social media and google ads
PAID ADVERTISING
NEWSPAPER AND
MAGAZINE ADS
CONSUMER FORUMS
BILLBOARDS
PHYSICAL
CHANNELS
PRINT MARKETING
TOOLS,
FLYERS,BANNERS
SEARCH ENGINE
OPTIMIZATION
DIGITAL
CHANNELS
SOCIAL MEDIA
MARKETING
GOOGLE PLAY ADS
EVENTS
TELEVISION AND
RADIO ADS
FINANCIAL FORECASTING
With the growth rate of ecommerce sector in the U.A.E predicted to multiply in the coming years, new ecommerce
players have outstanding opportunities to enter the ecommerce market and harness latest technologies and employ
customer-centric services, and establish a successful and viable ecommerce business in the country.
Future Trends
The long-term impact of COVID-19 has encouraged retailers and suppliers to restructure their logistical
operational models to remain robust, adaptive, and agile. This has ushered in various new trends set to reshape the
industrial and logistics sector moving forward. Supply chain management The main challenge for many companies in
a post pandemic world is proofing or developing resilience in their supply chains in the face of future disruptions. According to a study
by Capgemini Research Institute, almost 66% out of 1,000 organisations surveyed stated that their supply chain strategies would need
to change significantly to adapt to the new normal. This not only ensures business continuity but can also provide a competitive
advantage. A clear contingency plan, and the localisation and diversification of products and sources, are among the key
capabilities needed to ensure supply chain resilience.
Timeliness and last-mile delivery
The pandemic has accelerated consumers’ shopping habits and their delivery expectations, increasing stores’ promising on-demand
services. Along with grocery and convenience stores, the food industry was the first to deliver products to homes within the hour. Now
more retailers are promising to get products to doorsteps within the same day and even within hours. This calls for more sophisticated
and efficient distribution models and complex last-mile delivery models that ensure a satisfactory customer experience.
Data & Technology
As the proliferation of property technology increases, the industry will likely witness greater automation in the various processes and
stages involved across the supply chain. Artificial intelligence-based technologies, for example, have the ability to automate
administrative tasks and plan supply chain processes. Integrating robotics can reduce human error. Last-mile delivery tools, such as
drones and smart lockers, are also integral to logistics as they improve customer satisfaction. Lastly, data is essential to providing
actionable insights for improving warehouse productivity and the optimal utilisation of resources supply chains.
Sustainability
The pandemic has reminded us of the fragility of our ecosystem and is expected to drive the increased focus on
sustainability and environmental, social and corporate governance issues. With real estate accounting for 40% of
greenhouse gas emissions, sustainability in the built environment and transportation and logistics will shape the future
of real estate recovery. Major corporates will increasingly seek to decarbonise their logistics to reduce their energy
costs, meet regulatory demand, and satisfy customers. The increasing levels of e-commerce adoption and
subsequent demand for warehouse space will continue to push the performance of the logistics sector in 2021. Over
the next several years, increased requirements for last-mile facilities are anticipated to keep up with online shopping
demand. In addition, supply chains will be re-evaluated with more focus on creating efficient and carbon-neutral
USD MNS
UAE E – COMMERCE SALES
27.082
15.994
2019
e/f = estimate/forecast
19.772
2020
22.346
2021
2022
SOURCE: Fitch Solutions data