Egyptian digital warehousing startup, Khazenly, has unveiled a new service, Cross Borders, to provide Egyptian merchants with the opportunity to expand abroad and break into new markets.
The technology-based logistics company, which services companies within the retail and e-commerce sector, offers digital warehousing resources including dispatching services and payment collection.
Cross Borders aims to facilitate the process for Egyptian companies to reach target markets abroad by assisting with logistics as well as registration and trading regulations, as per an article published by Zawya in May 2023.
For merchants planning to break into Saudi Arabia’s market, Khazenly aids in the procurement of the required permits and certificates. The startup’s network of national banks and partners within the e-payment sector facilitates the process for companies dealing with foreign currencies and entities across borders.
The digitization of a business comes with a set of advantages including cutting costs, eliminating geographical restraints, and reaching a wider audience, among a series of other benefits. By improving shipping services, a business is afforded a wider range of customers both locally and abroad.
Ranked as the 41st biggest e-commerce market, the sector in Egypt is predicted to bring in $7.5 billion in 2023, with electronics and media being the largest within the sector making up 23.6 %, as per eCommerce DB, an e-commerce database.
Following electronics and media is fashion; food and personal care; toys, hobbies and DIY; and furniture and appliances.
As of 2022, the MENA region’s e-commerce market reeled in $37 billion with a 32% growth in Compound Annual Growth Rate (CAGR) between FY2018/FY2022, with the demand for online shopping predicted to continue its growth, WAM published in March 2023.
In 2021, Egypt came ahead in e-commerce progress among less-developed countries, according to a report by a UAE-based e-commerce hub, EZDubai.
By 2025, Africa is predicted to reach over half a billion users in the e-commerce sector, with Egypt registering around 38% of the population partaking in digital banking in 2021, as per a report released by the American International Trade Administration.
Currently in Egypt, social commerce Gross Merchandise Value (GMV) – a sector under the umbrella of e-commerce, which sees customers interacting with companies through social media, among other mediums – is $1.01 billion. By 2028, it is predicted to increase to $3.32 billion, as per an article published on Yahoo Finance in March 2023.