Casablanca – In recent years, e-commerce has experienced notable growth in Morocco, becoming a key player in the national economy. Online businesses have leveraged the country’s increasing internet penetration and a young, tech-savvy population to boost sales, especially during peak seasons like summer. However, 2024 has presented new challenges to this burgeoning sector, revealing a slowdown in growth that many insiders attribute to a variety of factors, including economic conditions, intensified competition, and changing consumer behavior.

A decline in summer sales

Historically, summer has been a golden period for e-commerce, as the season often brings with it an increase in consumer spending on seasonal goods such as beach gear, summer clothing, and leisure products. However, this year’s summer season has told a different story. Despite maintaining aggressive marketing campaigns, many e-commerce businesses in Morocco have reported a significant drop in sales volume compared to previous years.

E-commerce experts have noted that this decline has been ongoing since Ramadan and has persisted throughout the summer months. “We are in the middle of summer, which is typically characterized by high consumer demand for seasonal products, but sales are down. We attribute this to a decrease in citizens’ purchasing power,” they explained.

Economic constraints impacting purchasing power

The key factor behind this decline appears to be the weakened purchasing power of Moroccan consumers. With inflation and the rising cost of living, many Moroccans now view online shopping as a luxury rather than a necessity. This shift in perception has led to reduced demand for non-essential products, with consumers prioritizing basic needs over discretionary spending.

E-commerce consultants highlighted how this change has affected buying patterns: “Moroccans are now more selective with their purchases, focusing on products with real added value rather than buying anything and everything.”

Increased competition and lack of innovation

The e-commerce space in Morocco has become highly competitive, with a growing number of players entering the market. The accessibility of e-commerce platforms has led to a surge of new businesses, all vying for the same pool of customers. While this competition has driven prices down, it has also created market saturation, particularly for popular products.

Experts observed, “There are tens of thousands of people selling the same products. Whether it’s summer or any other time of the year, we see the same items being repeatedly offered for sale.” This flood of similar products has left many merchants struggling to stand out, reducing their share of total orders.

In addition to oversaturation, there is a notable lack of product innovation. As businesses focus on replicating successful product lines rather than introducing new and unique offerings, consumers have fewer reasons to make frequent purchases. “In the past, merchants could differentiate themselves by offering unique products,” one expert explained, “but today, everyone is selling the same things. This lack of innovation is contributing to the current stagnation.”

The rising cost of online advertising

Another challenge facing e-commerce merchants is the rising cost of digital advertising. Online ads, once a cost-effective tool for driving sales, have become increasingly expensive. Industry professionals pointed out that advertising costs, which used to average around $5, have now skyrocketed to between $7 and $10. For many smaller businesses, this increase makes it difficult to maintain profitability, especially given the current decline in sales.

Despite these challenges, many merchants continue to operate, largely due to contractual obligations with suppliers. “We are tied to commitments with foreign suppliers, and continuing operations often results in losses. However, we remain hopeful that sales will pick up in September and October when the school year begins, and economic activity returns to normal,” explained the experts.

Shipping slowdown and logistics concerns

Compounding the challenges is the slowdown in shipping from international suppliers. Moroccan e-commerce businesses, which rely heavily on imported goods, have faced delays and reduced order volumes from shipping companies. This logistical bottleneck has further dampened sales, as consumers wait longer to receive their purchases.

“The shipping companies themselves acknowledge the slowdown,” noted the experts. “They are no longer shipping the same volume of orders as before, and this has had a significant impact on the market.”

Outlook for the future

While the current state of e-commerce in Morocco is challenging, industry insiders are optimistic about a potential rebound in the coming months. Many expect that the return to school in September and the approach of the fall season will reignite consumer demand, particularly for essential products like school supplies and clothing.

Merchants are also hopeful that the market will correct itself as businesses adapt to the current environment. The key to overcoming these challenges may lie in innovation—offering unique products that meet consumers’ evolving needs—and finding cost-effective ways to maintain visibility amid rising advertising costs.

In the meantime, the e-commerce sector remains a vital part of Morocco’s economy, even as it navigates these turbulent times. As consumer habits shift and competition continues to grow, businesses will need to stay agile, innovative, and responsive to the changing landscape.