This paper presented some findings from a study researching the diffusion and adoption of online retailing in Saudi Arabia. It identified and explored key factors influence Saudi retailers to adopt e-commerce selling to their customers. While the overall research project uses mixed methods, the focus of this paper was on a quantitative analysis of responses obtained from a survey of retailers in Saudi Arabia, with the design of the questionnaire instrument being based on the findings of a qualitative analysis reported in a previous paper. From the study findings, it can be seen clearly that the most serious inhibitors are the current habits of people in KSA do not suit online transactions, lack of clear legislations and rules of e-commerce in KSA and lack of e-commerce experience. On the other hand, the top enablers from the viewpoint of retailers are all dependent on government action, either directly or indirectly. They include provision of trustworthy and secure online payment options (ranked 1), government support and assistance for e-commerce (ranked 2), development of strong ICT Infrastructure (ranked 3) and educational programs for people and building the awareness of e-commerce in the country (ranked 4). However, responses from the 28.4% of the sample which do have actual experience with operating an online retail business suggest that high ratings reflect some unrealistic expectations about the true efficacy of the enablers.
The most relevant practical implications of this paper are probably those which can be drawn from the responses of Saudi businesses which already have experience making online sales to Saudi customers. According to them, the most serious inhibitors are unfavourable Saudi consumer habits, lack of government regulations, and lack of online payment options. Retailers with previous online sale experience also provide clear and practical indications as to the top enabling factors. These are developing online payment options, enhancing ICT infrastructure and government regulations and support. Therefore, the government and the industry should pay attentions to these factors to facilitate e-retail growth in the country. The critical question, then, becomes whether there are valid justifications for the government to take such an interventionist role in normal commerce, as opposed to the cases of e-government and e-learning which involve public services or “social” goods. Such a question must be left to future research.