Overview of eCommerce Fulfillment Services Companies in Saudi Arabia
Saudi Arabia has been witnessing a boom in eCommerce for the last couple of years. It can all be attributed to socio-political factors such as increasing penetration of technology, liberal policies of the Kingdom, and the arrival of businesses into the nation. The growing exposure of social media platforms in the region has also contributed to more online engagement, which has trickled down into eCommerce sales for businesses in the country.
The introduction of major online shopping platforms such as Noon and Amazon has cultivated trust in Saudi Arabians for eCommerce. The country, which is heavily dependent on its oil reserves, is diversifying into other domains to promote a healthier economy. Such a government outlook has resulted in the emergence of several businesses in the country. While these businesses need a platform to sell their products, they also need partners to deliver the product. Hence, with the eCommerce business growing, allied services such as logistics and fulfillment become unalienable.
The post-pandemic perspective of the Saudis is in favor of online shopping with more than half of the people saying that they were likely to continue buying products online as per a study conducted by analytics firm SAS. This shift in the shopping preference of consumers means that country will experience growth in the eCommerce sector as well as allied services.
If you are an eCommerce business in Saudi Arabia, chances are that you have faced trouble settling for the right logistics and fulfillment partner for your business. The number of options available in the market makes it difficult to assess which fulfillment suits your needs the best, and trying every service to check is unfeasible. Hence, we bring this article to help you understand the importance of a fulfillment services provider company and list your best in Saudi Arabia.
Top 10 Best eCommerce Fulfillment Services Provider Companies in Saudi Arabia [2021 Updated List]
Here is a list of the best 10 eCommerce fulfillment services provider companies in Saudi Arabia. This list has been prepared after doing a proper research process.
1) Esnad Express eCommerce Fulfillment Company in Saudi Arabia
Esnad Express is a logistics services provider headquartered in Riyadh. This company was founded in 2012 and focuses on providing cost-effective fulfillment and logistics services to eCommerce businesses in the Middle East region. It enables online sellers to reach domestic as well as international customers.
- Through cross-border logistics management, Esnad enables businesses to manage an international supply chain, handle reverse logistics, manage clearances at customs and even track shipments in real-time.
- It offers an intuitive platform for eCommerce businesses that enables them to integrate payments solutions, track orders, create reports, and catalog and listing products.
- It offers quality check and monitoring services along with its warehousing solutions.
- Esnad’s platform also enables eCommerce companies to manage multiple vendors coupled with pickup and drop-off centers across the region.
2) Aramex in Saudi Arabia for eCommerce Fulfillment
Aramex is an international shipping and fulfillment business based in Dubai. It operates in more than 65 countries and offers its clients a reach of up to 220 nations with over 600 offices throughout the world. Aramex offers a range of tailored services for eCommerce businesses to handle logistics in the Middle East. This service provider is also integrated with online selling channels like Martjack and ShopGo.
- Aramex is a provider of third-party logistics services that include warehousing solutions, packaging services, order shipment, and doorstep delivery services.
- It offers a unique value-added service known as Shield that insures the product for up to USD 10000 in loss or damage.
- It has a range of eCommerce-centered value-added services such as custom packaging, assembling, on-site servicing, application development among others.
3) Ceva eCommerce Fulfillment Company in Saudi Arabia
Ceva Logistics is a global provider of logistics solutions. It is headquartered in Switzerland and operates in more than 160 countries around the world. It has major operations in Saudi Arabia & facilitates cross-border eCommerce in region through its 1000+ global fulfillment facilities. Ceva offers third-party logistics and fulfillment services with dedicated solutions for eCommerce businesses in Saudi Arabia.
- Ceva offers a proprietary warehouse management system (WMS) for its warehousing and inventory management services.
- It offers 3PL solutions such as cross-border eCommerce, returns management, and last-mile delivery.
- It has a suite of value-added services that include packaging or orders, receiving and pickup services, brokerage for customs clearance, and insurance for cargo.
4) Naqel Express Fulfillment Company in Saudi Arabia for eCommerce
Naqel Express is a shipping and logistics company headquartered in Riyadh. It was founded in 1993 and currently operates in 12 countries in the Middle East region. Naqel Express provides third-party logistics and fulfillment services within the region. It has a fleet of more than 3000 vehicles for delivery purposes and a workforce that is comprised of over 3500 logistics professionals. It is a key logistics player in KSA handling over 4 million deliveries and shipments every year.
- Naqel Express offers several fulfillment services such as warehousing, transportation of cargo, and inventory management.
- It offers storage facilities to eCommerce businesses and provides distribution solutions to help reduce costs.
- It provides online sellers with value-added services including insurance, holding for collection services, and servicing regions that are out out-of-delivery-area to reach maximum consumers.
5) SMSA Express Company for eCommerce Shipping and Fulfillment
SMSA Express is a courier company based in Riyadh providing logistics and fulfillment services in the Middle East for over 20 years. It has a reach of over 220 countries and territories around the world, operations in 325 cities, and a fleet of more than 1400 vehicles.
- SMSA provides several 3PL solutions in Saudi Arabia such as warehousing, inventory management, supply chain management, and distribution.
- It provides a host of value-added services like assembling, product packaging, and bundling.
- SMSA enables users to receive the real-time shipment tracking information through its proprietary platform.
- It provides broad regional and international access to businesses via partnerships with 212 retail centers, 25 stations, 5 distribution hubs, and 8 gateways.
6) Saudi Post eCommerce Fulfillment Company in Saudi Arabia
Saudi Post courier is a government-operated courier service based in Saudi Arabia. It is often referred to as al-Bareed in the nation and provides shipping and logistics services in the Middle East. It operates 580 outlets within the Kingdom along with 13 centers for sorting and 62 lockers. Saudi Post has a direct presence in more than 146 cities and villages across the KSA.
- Saudi Post offers three last-mile delivery options including doorstep shipping, delivery to a locker, and delivery to postal offices.
- It offers flexible payment options such as COD which includes payment via cash, card through POS, or a payment link.
- It offers multi-location pickups such as from warehouses or stores.
- It allows eCommerce businesses to track orders and receive proof of delivery.
7) Zajil Express Fulfillment Company in Saudi Arabia
Zajil Express is a logistics and supply chain management company headquartered in Riyadh. It has over 120 branches in KSA and has expanded in other nations within the Middle East. Zajil Express specializes in providing cost-effective logistics solutions to eCommerce businesses in the region along with a host of fulfillment services.
- Zajil Express is known for its fast delivery with the capability to deliver products before 9 AM on the next business day in the cities of Dammam, Riyadh, and Jeddah.
- It offers value-added services including wrapping, packaging, and heavy shipments.
- It allows end consumers to pay for online orders at the time of delivery using cash or a card of their choice.
- It also offers a ‘Super Shipments’ service for expensive and sensitive product deliveries.
8) StarLinks Company in Saudi Arabia for eCommerce Fulfillment
StarLinks is a leading supply chain solutions company based out of Damman in KSA. It offers end-to-end logistics solutions to eCommerce in the region and has been in business for almost 50 years. It enables eCommerce businesses to reach their customers in Saudi Arabia through their third-party logistics and fulfillment solutions.
- StarLinks offers 3PL services such as warehousing, omnichannel fulfillment, and cold storage for products.
- It has a dedicated order handling infrastructure for eCommerce businesses with more than 800 collections and return locations.
- It offers value-added services such as heavy and deliveries, home appliance delivery and installation, and express delivery services.
9) Thabit eCommerce Fulfillment Services in Saudi Arabia
Thabit logistics is a top-level fulfillment service provider company from Riyadh. It offers specialized services for express delivery in the 5 biggest cities in the Kingdom of Saudi Arabia. It partners with major eCommerce companies in the country to provide access to faster deliveries in the country through the use of technology and an intuitive platform.
- Thabit offers pickup, receiving, and order processing services for eCommerce companies.
- It offers fulfillment services such as warehousing, assignment, and order dispatching.
- It provides several value-added services which include order tracking, COD, and proof delivery.
- Thabit also offers reverse logistics solutions for online businesses.
10) Saee eCommerce Fulfillment Company in Saudi Arabia
Saee logistics business is headquartered in Jeddah. It was founded in 2015 and had completed more than 3 million deliveries as of 2021. It offers shipping and fulfillment services to online sellers through its 3000+ delivery agents across the KSA and the Middle East.
- Saee offers fulfillment solutions including inventory management and warehousing through its 12 storage facilities across the Middle East.
- It offers short processing timelines to ensure prompt delivery and reduction in the rate of RTOs.
- Saee offers specialized solutions for eCommerce businesses to reach remote locations within the Kingdom through 3rd party warehousing services.
- It offers a returns management system to help online sellers receive, manage and process product return requests efficiently.
Why Do eCommerce Companies Need Fulfillment Services Companies in Saudi Arabia?
Fulfillment is an important part of the online shopping ecosystem. It ensures that the products ordered online are delivered to the end consumer promptly without compromising on quality. While several logistics companies provide some form of fulfillment services, a full-fledged fulfillment business is a great asset for a growing eCommerce company.
The logistics industry is complicated and infrastructure intensive. It requires large amounts of investment to establish an in-house logistics arm. While a self-owned logistics arm could be an asset in the long run, in the nascent stages of an eCommerce business it hinders scalability. A fulfillment services provider company can help an online seller scale fast with growing demand for their products, without worrying about exorbitant infrastructure development costs.
Online businesses also benefit from the industry expertise and experience of established logistics companies as against developing one for itself. A fulfillment service provider can offer value-added services along with a host of customized services to help businesses gain access to specialized solutions. Due to high competition in the industry, several service providers offer affordable solutions that can help maintain margins and leave scope for growth.
How to choose the best eCommerce fulfillment services provider company in Saudi Arabia for your business?
Before settling for a fulfillment services provider company in Saudi Arabia for your business, you need to look at a myriad of factors. It is important to understand the requirements of your business and how a particular fulfillment services provider will help you achieve your goals. However, with several options in the market, it can become confusing to decide which partner is the right choice for your business. Therefore, to help you select the ideal fulfillment partner for your company, here is a list of factors that you must consider before settling for a provider.
Reach and serviceability is an important factor before deciding which company you want to partner with for fulfilling your online orders. A larger reach will allow your business to serve more customers and expand to regions that you did not previously consider a market. For businesses that need a scalable solution for their online selling platform, a fulfillment services provider with more reach will essentially mean higher potential for growth.
A larger reach will also likely be accompanied by a wide network of facilities and predefined routes that improve the efficiency and quality of the shipping experience. This will in turn give your eCommerce business more flexibility with options to ship your products, and also allow you to spread your inventory across a region. A distributed inventory system will help you get your products to your customers faster while also reducing the risk of damage due to reduced transit.
One of the most important considerations before choosing a fulfillment service is the pricing. The cost of shipping and fulfillment will affect the expenses and profitability of your business directly. While choosing a cheaper partner makes fiscal sense, however, you might face troubles with the quality of service which might end up costing more in damage and delays.
To be able to maintain margins and keep fulfillment costs at a minimum, it is important to consider the cost of operations, but not at the expense of quality. A good partner would be someone who can offer you competitive rates for its services without compromising on expected standards. Do not opt for a cheaper provider for the sake of saving on costs, however, do not opt for an unreasonably expensive provider to hamper your profitability. Taking a middle route is always the best option.
An eCommerce platform works in an environment with tough competition. Therefore, it is essential to any online seller that its customers get their products timely and securely. To achieve this, a fulfillment provider which brings high levels of efficiency to the logistics operations of the company is required. Before deciding which fulfillment services provider is right for your business, you need to know how fast they can get your products delivered to your end consumer.
A good way to understand this is by checking the average delivery time mentioned offered by the provider. It is also recommended that you opt for a provider that offers on-demand and express delivery options. Express delivery options allow you to make faster deliveries to your customer in case you receive an urgent requirement. Several companies also offer same-day and next-day delivery solutions.
4. Return-to-origin figures
Return-to-origin or RTO is a term used to describe the event where a product delivery has failed. When delivery fails, a return request is generated to send the item back to the seller. RTO can be caused by a number of factors ranging from incorrect delivery information, failure to contact customers and even cancellations due to delays. This can cause severe losses to a business not only in monetary terms but also in terms of reputation.
While choosing a fulfillment service for your business, always consider the RTO figures. A higher RTO percentage means that the chances of your order returning to the origin are higher with that particular provider. A lower percentage means that the provider is taking the necessary steps to ensure that the product is successfully delivered to the end consumer. Some providers are also known to fake certain deliveries in order to exhaust the necessary attempts and get the order back to the origin. This can easily be identified by taking a look at the RTO numbers of the provider.
5. Value-added services
While there must already be certain services that you would like to avail from a provider, it is recommended that you look for a provider with more solutions. Although you may not require certain things while looking for a provider, it is always advantageous to have a provider that can offer more utility to business. Value-added services give businesses scope for growth in the future, and also make the provider a sustainable and future-ready solution for your business.
Value-added services also bring more value to your shipping experience. The option to choose from a roster of solutions gives your business more flexibility. It also allows you to experiment with certain features to test the waters and embrace new capabilities for your platform. However, more importantly, you must always seek to choose a provider that offers the bare minimum services which are essential to the success of your business.
Every fulfillment services provider has certain domain specializations that make them stand out from the competition. Each provider's specialization is suitable for different markets and different players. To create meaningful and lasting business relationships it is essential that you understand your preferred provider. The expertise that the provider has to offer will impact your business in some way and it is always better to opt for a fulfillment provider that specializes in a domain that is directly beneficial for your operations.
If there is a particular service that can help your business and can directly improve your fulfillment experience, you must choose an expert provider for it. For instance, if your online store sells products that are fragile or maybe voluminous and bulky, you must research and look for a provider that is expert in handling, storing and delivering such products safely. Especially for stores selling non-standard products which require specialized care, an expert provider can help bring efficiency and viability to the business.
7. Reverse Logistics
Managing returning orders is a critical part of the eCommerce industry. The cut-throat competition between online retailers has created an environment where customer satisfaction is paramount, even at significant monetary costs. One of the most visible results of this customer centric approach is the facility to return products, and in some cases without any questions. In order to compete with other players, most businesses have to allow returns for most or all of their products.
The process of reverse logistics is difficult to manage and increases the risk of damage. Since the product is exposed to the entire fulfillment process in an inverted order, it is once again subject to handling, transit and storage. This increases the chances of damage to the product and also multiplies the odds of the item being lost before reaching its origin. While choosing a partner for your online business, you must consider the importance of reverse logistics and ensure that your provider is a reliable partner in handling such operations.
It is important to look at the services that are offered by a fulfillment, however, it is often overlooked how the services that a company does not offer affects a business. While choosing a company that offers fulfillment services for your eCommerce business, be sure to consider its limitations.
Limitations to companies come in a variety of forms ranging from restrictions on weight, volume or size to non-serviceability of certain regions and perhaps even the lack of certain value-added services. It is critical that you ensure that the services that you desire for your business are offered by your probable partner.
9. Technology and platform
Since an eCommerce platform is purely dependent on technology for most of its operations and existence, it is only natural that it works closely with businesses that use and offer the necessary technology to manage fulfillment. While looking for probable partners, inquire about their digital platform and services. Since most of the operations for an online seller are performed on the internet, it is always better to have a partner that can integrate easily with your system.
The digital platform of your fulfillment partner will also impact the efficiency of your logistics experience. An intuitive and advanced platform that can integrate easily with yours can make your operations smooth and snappy. However, should the same platform be redundant or outdated, it can wreak havoc on your operations, leading to delays, inaccuracies and even failure to fulfill your orders.
10. Historical performance
Lastly, the track record of your possible partner is important before availing of its services. The historical performance of a company provides an insight into its capabilities and efficiency. A provider with a great track record and highly rated reviews should be your obvious choice.
Assessment of historical performance is also a great way to understand the experience of a company. A company that has previously offered the services that are important to your business is likely to perform better for you.
|Esnad Express||Riyadh, KSA||Muhammad Omer Tayyeb, Mutlaq Zaid Al Faraj||2012||Cross-border logistics, Warehousing, Order fulfilment, Last-mile delivery||Logistics, 3PL, Shipping||$19M~|
|Aramex||Dubai, UAE||Bill Kingson, Fadi Ghandour||1982||Express logistics, Freight forwarding, Warehousing, Customs clearance, eCommerce shipping||Shipping, Freight, 3PL||$1.6B|
|Ceva||Marseille, France||Ken Thomas||2007||Supply chain management, Freight, Project logistics, Customer brokerage,||Global shipping, Freight||$7.4B|
|Naqel Express||Riyadh, KSA||Mohammed Al-Bayati||1993||Last-mile delivery, eCommerce fulfilment, Customs clearance, Freight, Express delivery||Shipping, 3PL, Freight||$489M|
Naif Sultan Al Athel
|1994||Express logistics, Freight, eCommerce shipping, 3PL||Shipping, Freight, 3PL||$600M~|
|Saudi Post||Riyadh, KSA||King Abdul Aziz bin Abdul Rahman Al-Saud||1926||Courier, eCommerce logistics, International shipping||Shipping, logistics, 3PL||2.75B SAR~|
|Zajil Express||Dammam, KSA||Yasser A. Alkadi||1999||Express shipping, Transportation, Specialised shipping, 3PL||Shipping, 3PL||$4M~|
|StarLinks||Dammam, KSA||Ali Zaid Al Quraishi||1971||Freight, Transportation, Warehousing||Freight, 3PL||n/a|
|Thabit||Riyadh, KSA||Abdulaziz Al Enazi||2020||Shipping, Warehousing, Order processing, Last-mile delivery, Reverse logistics||Shipping, 3PL||n/a|
|Saee||Jeddah, KSA||Eihab Nassier, Tariq Al-Turkostani||2015||Express delivery, eCommerce fulfilment, On-demand delivery, Reverse logistics||Courier, 3PL||n/a|
Saudi Arabia’s growing exposure to the internet has piqued the interest of online sellers. The rise in numbers of social media users is also indicative of improved access to online services, meaning eCommerce has more reach. While traditional businesses are still recovering from the COVID-19 pandemic, the increased traffic on the web is being used by technology giants to leverage a once-in-a-lifetime opportunity.
When everyone is on the internet, competition with brick-and-mortar stores becomes virtually non-existent, and fortunately for online businesses, the best opportunities come knocking even in the worst of times. As eCommerce grows, so does the logistics industry. In an age where the world has been receiving products on their doorstep more conveniently than walking down to a store, Saudi Arabians are following suit.
Fulfillment businesses in the country are on track to take the eCommerce industry to new heights. Where eCommerce businesses seek to reach the farthest, most remote parts of the country to gain every prospective customer, logistics companies provide the necessary expertise and infrastructure to make such a feat possible.