Unlocking the Potential of E-Commerce in Yemen: Identifying Key Impacting Factors and Exploring Strategic Solutions

Abstract

This study offers a comprehensive analysis of the e-commerce ecosystem in Yemen, identifying key opportunities and impacting factors to growth, and suggesting suitable strategies for e-commerce startups. The study employs an integrated methodical approach, combining a literature review, and data analysis using Grey Analytic Hierarchy Process (Grey AHP) and Grey Technique for Order of Preference by Similarity to Ideal Solution (Grey TOPSIS). The literature review identifies opportunities, challenges, and strategic solutions. The Grey AHP assesses the relative importance of opportunities and challenges. The Grey TOPSIS ranks the best strategies that e-commerce startups in Yemen can adopt to leverage these opportunities and manage the negative effects of the barriers. The results show that large market potential, the underserved market, and the growing middle class represent the most significant opportunities. In contrast, economic and political instability, logistical challenges, and the lack of trust in online payments are the most significant impacting factors. To overcome these challenges, the top three strategies recommended are building strategic partnerships, offering secure payment and delivery options, and targeting the underserved market. By implementing these strategies, the e-commerce ecosystem in Yemen can prosper, take advantage of opportunities, and contribute to the country’s economic development.