Does dropshipping work for grocery in Saudi Arabia?

It works where the buyer is patient and the item is hard to compare on price. It fails where either of those is untrue — and the second is untrue for anything with a barcode.

Where it works and where it does not

The test worth running before committing: can the customer find the identical item elsewhere in under a minute? If they can, the competition is on delivery speed and price, and a dropshipper controls neither.

Dropshipping trades margin for not holding stock, and the trade only works while traffic is cheap. For a grocery or food store in Saudi Arabia, the answer turns on one thing in particular: Grocery margins are thin and baskets are large, so the whole model lives or dies on delivery cost per order.

What is different about Saudi Arabia

Saudi Arabia is the largest ecommerce market in the region by some distance, and the most phone-dominated.

Cash on delivery remains common in Saudi Arabia, which changes the economics of every refused delivery.

What is different about a grocery or food store

The part nobody plans for is returns: if the supplier will not take one back, the store is the returns department.

Where a mobile app comes into it

Weekly reordering is the behaviour, and an app that remembers the last basket removes most of the work.