Both the economies of Saudi Arabia and UAE are poised to surpass 25 billion USD by 2029. This progressive growth is accelerated by massive improvements in logistics infrastructure, high internet penetration, and constant rise in online shopping.
Despite the booming expansion of eCommerce in UAE and Saudi Arabia, they too are plagued by the universal problem of eCommerce returns.
According to an estimate by the Dubai Chamber of Commerce and Industry, at least 15% to 20% of all eCommerce products are returned to businesses.
Managing returning orders is a major inconvenience for online sellers. Product returns not only leads to revenue loss but also significantly makes up for increasing shipping and management costs.
Moreover, if not carefully handled and processed, returned items are at the risk of incurring damage. This would also mean wasted inventory.
Only reputable carriers specializing in reverse logistics can help companies save on time and costs of returns management. In this article we’ll list down the best shipping companies for managing eCommerce reverse logistics in Saudi Arabia and UAE.
The Role of Reverse Logistics for eCommerce in Saudi Arabia and UAE
Reverse logistics is a part of supply chain management. It’s the movement and management of goods as they move backward in the supply chain from the customer to the online business.
The reverse logistics process is more than simply transporting goods back to the source of origin. It includes the proper disposal of the product, either by recycling, reselling or liquidation.
The most agents though are the shipping carriers. They represent the brands to customers and determine whether the returned product safely arrives at the brand’s warehouse.
Apart from them, 3PLs, manufacturers, recyclers, and marketplaces all play their part in upholding integrity and quality of reverse logistics process.
Best Courier or Shipping Partners for Reverse Logistics in UAE and Saudi Arabia
1) Aramex
Aramex is an international shipping services company with its headquarter in the UAE. It has a significant presence in the MENA region, including Saudi Arabia, and has been operational since 1982.
Aramex has over 12,000+ offices in 240 countries and maintains a fleet of over 33,000+ vehicles conducive for domestic and international shipping.
Aramex offers domestic and international returns services in UAE and Saudi Arabia including dedicated reverse logistics solutions for eCommerce companies.
Aramex has special provisions for brands looking to offer free returns to customers. This involves both shipping rate negotiations and access to its wide network of drop-off points and parcel lockers.
For added convenience, customers can choose drop off locations at cafés, retail stores, and even pharmacies. Additionally, it functions as a 3PL with devoted space for warehousing, expertise in inventory management, and cross-border delivery.
At the same time, it presents value added services like shipping insurance and cash-on-delivery.
2) Saudi Post
Saudi Post is also known as SPL is the national postal and courier service of the Kingdom of Saudi Arabia. It was founded in 1926 as the Ministry of Post, Telegraph, and Telephone, but has since diversified its services into shipping and logistics.
It owns and operates 580 outlets, 13 sorting stations, and 62 lockers in 146 cities, towns, and villages within the KSA.
Saudi Post offers shipping facilities for managing both forward and reverse logistics within and beyond Saudi Arabia. As a reverse logistics company Saudi Post offers businesses three convenient shipping services- door-step delivery or lockers or post offices delivery.
If retailers decide to offer free shipping or provide return shipping labels, customers can return their products anywhere in the 580 outlets of Saudi Post.
Furthermore, Saudi Post has a robust order tracking system in place and facility to send notifications to customers. Other than this, it also provides cross border shipping solutions including customs clearance.
This way, businesses in Saudi Arabia can provide easy returns services to their international customers.
3) SAG Logistics
Based in UAE, SAG Logistics is a key player in the shipping and logistics area for the MENA region. It has a rich experience in freight forwarding in multi model mode, involving ocean, air and ground transportation.
SAG Logistics also has 3PL capabilities and offers warehousing in temperature controlled storages, 5000+ pallets, and quick access to the Jabeli Sea Port.
SAG Logistics has tailored shipping solutions for eCommerce enterprises in UAE and Saudi Arabia. Its strong suit lies in cross-border logistics especially for countries like Saudi Arabia, Oman, Iraq, and Dubai.
It handles all customs procedures including paying duties and taxes, handling permits and licenses, and arranging the appropriate freight service.
4) Esnad Express
Esnad Express is a logistics company from Riyadh with major operations in the Middle East. It offers a suite of cost-effective shipping and logistics services within the KSA.
It operates a total of 430 locations for its land operations in the KSA to facilitate regional logistics.
Esnad Express originated from an eCommerce business, so it is well versed in tackling the challenges of eCommerce shipping and reserve logistics.
It offers highly competitive shipping rates to online brands that’s sometimes 300% less than other companies.
It also guarantees a 95% SLA adherence. It provides same-day delivery in the city of Riyandh, and next-day shipping in 25 cities of Saudi Arabia.
This can directly resolve the return issues. Customers who receive their orders on time are less likely to file a return, if they are satisfied with the product.
Furthermore, it has an advanced quality check mechanism in place. When paired with its e-fulfillment services, Esnad offers an excellent solution for quality assurance, refurbishment and recycling.
Its reverse logistics suite also ensures online tracking, and temperature controlled containerized vessels for secure transportation of returned items.
5) Barq Express
Barq Express is a Riyadh-based logistics services provider offering eCommerce solutions in Saudi Arabia and UAE. It leverages artificial intelligence to improve the efficiency of product shipping.
Barq Express offers a product returns service for online sellers in the KSA and UAE along with cross-border reverse logistics in a large part of the MENA region.
More importantly, it offers a 14 day return policy from the date of the product receipt back to the point of origin. This makes it a well-regarded reverse logistics service provider for eCommerce brands.
Apart from these, Barq Express provides a tracking facility to trace the location of the order in real-time. It also gives sellers the feasibility of COD orders, picking, packing, and shipping fulfillment services.
Conclusion
Reverse logistics is crucial to an eCommerce business. Growing competition in the market has given rise to no-questions-asked returns policies from several online sellers.
In such an environment, a misfit reverse logistics company managing returns could be detrimental to the success of an eCommerce business.
It is important to pay attention to the intricacy of the process of reverse logistics and undertake thorough research before partnering with a shipping company.