United Arab Emirates Amazon AE Selling
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Are you looking for an opportunity to grow your Amazon business?
Expanding to Amazon United Arab Emirates and Dubai should be at the top of your list. It is a fast-growing e-commerce destination with high internet penetration.
The growing middle class is accustomed to online shopping and has the digital devices to make it happen.
From a business perspective, the government is encouraging the growth of e-commerce. It aims to make Dubai a regional logistics hub, a gateway to Africa, Asia, and the Middle East.
Enabling policies include the development of free trade zones and the reduction of bureaucracy and import costs.
According to the Majid Al Futtaim Group's Q3 2021 report, consumer confidence in the United Arab Emirates reached a ten-year high. This happened despite falling sales in other markets around the world.
Selling on Amazon UAE, the shift to online purchasing during the pandemic led to a 53% increase in e-commerce sales in the United Arab Emirates in 2020. The ongoing e-commerce growth, combined with the rapidly growing economy, shows that online sales have a long way to go before they reach their peak.
The United Arab Emirates Commercial Guide gives the following as the main factors buyers look for when shopping online:
Reuters reports that the Minister of Economy, Abdulla Bin Touq Al Marri, expects 5% to 6% growth this year and plans to double the economy by 2031.
The product categories that generate the highest online sales revenue on Amazon United Arab Emirates are:
Making money with Amazon in the United Arab Emirates and selling on Amazon UAE is no more difficult than in other modern economies. If you have a product that meets the needs of the citizens at an attractive price, there is no reason why you shouldn't make a good profit.
Amazon United Arab Emirates was founded in 2005 under the auspices of Souq.com FZ, LLC. Amazon acquired Souq in 2017, launching its entry into the Middle East.
By 2020, Amazon had started offering advertising in the country.
The Amazon platform continued to grow its presence, and according to Statista, the value of global e-commerce in the United Arab Emirates was $1.702 million in 2020.
Today,
Amazon claims the number one position in e-commerce shopping in the UAE market.
There are four factors that make the Amazon UAE markets so attractive.
Smartphone and internet usage in the United Arab Emirates is one of the highest in the world. According to a Business Wire report, 99% of the population uses social media.
The increased use of social media platforms has led to a similar increase in online shopping. COVID-19 gave momentum to the growth in e-commerce trade.
The Dubai Executive Council is driving the growth of e-commerce in the region. Their published objectives include:
To create a global logistics hub:
Many government services, such as utility payments, are now available online. This has helped people become more comfortable with the online experience.
The government's steps to improve digitalization have been positively received by society. They also have the digital devices they need to access online resources. This will further boost online sales.
For the past few years, Dubai has been investing in its logistics infrastructure. Extensive railway and free zone developments are reinforced by automated port infrastructure.
The United Arab Emirates is poised to achieve its goal of becoming the logistics hub of the Middle East. Low logistics and operational costs will ensure that the UAE continues to attract investment.
Creating an Amazon.ae account is not difficult.
What you need:
Your company name must comply with the UAE company naming protocols. If you plan to use an Amazon service agency in the United Arab Emirates, now is the time to hire one. They can help you with the naming and registration of your company from the very beginning.
When you apply for a UAE Dubai E-commerce license, you need to choose between a Free Zone license or a mainland license.
Free Zone licenses are cheaper and offer advantages. These include the absence of currency restrictions and customs duty exemptions.
Complete the license application and show your passport at the license offices. It's that easy.
As a foreigner in Dubai, you will need a valid residence visa to be able to open your Amazon account. You can apply at an immigration center where you will undergo a fitness test, blood tests, and a chest x-ray.
You will need a bank account before you can buy and sell.
The United Arab Emirates is home to many major financial players. They have different rules and regulations and will request various documents before opening a corporate bank account for foreign traders.
Take some time to research the banks before deciding on the institution that suits your needs.
Amazon will need proof of your address before opening your Amazon United Arab Emirates Seller account. They will use these documents to verify your identity.
Amazon will want to contact you during the registration process, so you will need to provide them with a phone number in the application.
All sellers must provide Amazon with a valid ID, so you will need to upload yours when you apply.
If you are used to working in Amazon Seller Central, you will find that the situation in the United Arab Emirates is no different.
The Amazon Seller app makes it easy to keep track of your Amazon online business. You can now track your sales, create product listings, and answer customer questions from your smartphone, wherever you are.
There is no cost to register as an Amazon seller in the United Arab Emirates.
Amazon charges between 4% and 15% for each item sold. These are called referral fees, and the size of the fee varies depending on the product category.
The Prime Badge will win you more customers because buyers trust the reliable and free shipping promised by the Prime Badge. The fastest way to earn this coveted badge is to use Amazon FBA.
When you use Fulfillment by Amazon, Amazon will store, pack, and deliver your products for you. The fees are determined by the weight and dimensions of the product.
Other costs for an Amazon seller UAE may include storage or advertising costs. There may also be costs for premium services.
As an Amazon seller in the United Arab Emirates, there are three fulfillment options open to you. We discuss them below:
FBA is the most seamless option for new Amazon United Arab Emirates Sellers.
With FBA, you ship your products to the Amazon warehouse and Amazon stores, and they pack and ship your products on your behalf. When your business is doing well, it may be time to consider one of the other two options.
If you prefer to store and pack your products yourself, choose Easy Ship. Then use Amazon's extensive logistics network to ship your products to your customer.
This is a good option for Amazon sellers who have a fairly large delivery ledger and need to manage costs carefully.
If you prefer to manage your own storage, packing, and distribution, you can opt to self-ship.
This is a good choice for sellers who have their own warehouses and transport contracts. The delivery of large items is also often cheaper when using the self-ship option.
The success story of your Amazon seller business depends on your ability to sell your products. The first and most important part of the sales journey starts with the right traffic. If customers don't see your product, your efforts are wasted.
Members of our team not only translate Amazon listings into their native language, they also use their local cultural knowledge to optimize your listings. They know the commonly used keywords and even the colloquial language that attracts the right traffic.
This is much more than a translation service. This is the ticket to success in your Amazon United Arab Emirates seller journey.
You can sell on Amazon.com from the United Arab Emirates. Once you register for a Seller Central Account in the UAE/Saudi Arabia, you are ready to go. As with all other markets, it is important to understand the rules regarding VAT and customs duties before starting to trade.
Do I need a license to sell on Amazon in the United Arab Emirates?
You will need a commercial trade license to trade in the United Arab Emirates. You cannot trade on Amazon unless you have an e-commerce license.
Is it profitable to sell on Amazon United Arab Emirates?
If you have a product that meets a need and you have priced it correctly, there is no reason why you should not make a profit as an Amazon UAE seller. The UAE market is no different from other Amazon markets in this respect.
What is the best product to sell on Amazon United Arab Emirates?
In the medium term, the fastest-growing product categories are expected to come from household goods and home furnishings, food and beverage, and media products. Currently, electronics and home appliances are the number one online sellers.
Given these conditions, could there be a better time to become an Amazon United Arab Emirates seller?