The Ultimate Guide: How to Sell on Amazon UAE in 2022
Best time & products to sell on Amazon UAE & Dubai
Looking for an opportunity to grow your Amazon business?
An expansion into the Amazon UAE & Dubai should top your list. It is a fast-growing e-commerce destination with high internet penetration.
The growing middle class has become accustomed to online shopping and has the digital devices to make it happen.
From a business perspective, the government is driving e-commerce growth. It aims to make Dubai the regional logistics hub, a gateway into Africa, Asia, and the Middle East.
Enabling policies include the development of free trade zones and a reduction in red tape and import costs.
Given these circumstances, could there be a better time to become an Amazon UAE Seller?
e-Commerce Trends in the United Arab Emirates in 2022
Consumer confidence in the UAE has reached its highest level in ten years according to the 2021 Q3 Majid Al Futtaim Group report. This is despite sales slumps in other markets across the globe.
The shift to online buying during the pandemic led to an increase of 53% in e-commerce sales in the UAE during 2020. Continued e-commerce growth combined with a fast-growing economy suggests that online sales still have a long way to go before they peak.
The UAE Commercial Guide gives the following as the main factors that buyers look for while shopping online
- Price
- Customer service
- Ease of use
Reuters reports that the economy minister, Abdulla Bin Touq Al Marri expects growth of 5% to 6% this year and plans to double the economy by 2031.
The product categories that bring in the highest online sales revenue on Amazon UAE are:
- Consumer electronics and appliances
- Media products
- Computers
- Fashion accessories
- Women’s clothing
- Perfumes and cosmetics
How to Make Money from Amazon UAE
Making money with Amazon in the UAE is no more difficult than in any other modern economy. If you have a product that answers the needs of the citizens at an attractive price, there is no reason why you shouldn’t turn a good profit.
The secret lies in understanding your target market and then tailoring your value proposition to meet their needs.
Amazon UAE Statistics & Numbers
Amazon UAE was launched in 2005 under the auspices of Souq.com FZ, LLC. In 2017, Amazon bought Souq, launching its entry into the Middle East.
By 2020, Amazon offered advertising in the country.
The Amazon platform has continued to grow its presence and according to Statista global e-commerce in the UAE was worth $1,702 million in 2020.
Today,
Amazon claims the number one position for e-commerce shopping in the UAE marketplace.
The Benefits of Selling on Amazon UAE
Four factors make Amazon UAE markets so attractive.
1. High Internet Users
The use of smartphones and the internet in the UAE is one of the highest in the world. 99% of the population uses social media according to a Business Wire report.
The growth in the use of social media platforms has led to a similar increase in online shopping. Covid-19 added to the impetus for growth in the e-commerce trade.
2. Government e-commerce Policies
The Dubai Executive Council is driving the growth of e-commerce in the region. Its published goals include the following:
To create a global logistics hub:
- Increase the market share of companies based in Dubai by driving e-commerce costs down by 20%. These costs include VAT, customs duties, transport, and storage
- Streamline customs clearance and reduce fees
- Attract more foreign investment into e-commerce through reduced regulation in free trade zones
Many government services, like utility payments, are now available online. This has helped to make people more comfortable with the online experience.
3. e-Commerce Technology
The government’s steps to improve digitization have been well accepted by the community. They also have the digital devices they need to access online resources. This will drive online sales ever upward.
4. Excellent Logistics & Distribution
Over the last few years, Dubai has been investing in its logistics infrastructure. Extensive rail and free zone developments have been augmented by automated port infrastructure.
The UAE is poised to meet its goal of becoming the logistical hub of the middle east. Low logistics and operational costs will ensure that the UAE continues to attract investment.
How to Set up a Selling Account on Amazon.ae
Setting up an Amazon.ae account is not difficult.
Here’s what you’ll need:
Your brand name & contact info
Before you start, you’ll have to name your company and set up your contact information.
The name of your company must follow the UAE company naming protocols. If you plan to use a setup agency, now is the time to hire one. They can help you from the start with the naming and registration of your company.
An e-commerce license
When you apply for an e-commerce license, you must choose between a Free Zone license or a mainland license.
Free Zone licenses are cheaper and they carry benefits. These include the absence of currency restrictions and customs tax exemptions.
Complete the application for a license and present your passport at the licensing offices. It’s as easy as that.
A resident’s visa (for a foreigner)
As a foreigner in Dubai, you’ll need a valid resident’s visa before you can open your Amazon account. You can apply at an immigration center, where you will undergo a fitness test, blood tests, and chest x-rays.
A valid corporate bank account
Before you can buy and sell, you’ll need a bank account.
The UAE is home to several big financial players. They have different rules and regulations and will ask for an assortment of documents before they’ll open a corporate bank account for foreign traders.
Take a little time to research the banks before you settle on the institution that suits your needs.
A valid billing address
Amazon will need proof of your address before they open your Amazon UAE Seller account. They will use this documentation to authenticate your identity.
A phone number
Amazon will want to contact you during the registration process so you’ll have to provide them with a phone number on the application.
A valid national identity document
All sellers must provide Amazon with a valid identity document so you will have to upload yours when you apply.
Get to know Amazon Seller Central UAE
If you’re accustomed to working on Amazon Seller. You’ll find that it is no different in the UAE.
The Amazon Seller app
The Amazon Seller app makes it easy for you to track your Amazon online business. Now you can keep up to date with your sales, create product listings and answer customer queries on your smartphone wherever you are.
How Much Does It Cost to Sell on Amazon UAE?
It costs nothing to sign up as an Amazon seller in the UAE.
Referral fees
Amazon charges between 4% and 15% for every item sold. These are called referral fees and the size of the fee depends on the product category.
Fulfillment fees
The Prime Badge will earn you more customers because buyers depend on the reliable, free shipping that Prime Badge promises. The quickest way to earn this coveted badge is to use Amazon FBA.
When you use Fulfilment by Amazon, Amazon will store, pack, and deliver your products for you. The fees are based on product weight and dimensions.
Other costs
Amazon seller UAE‘s other costs could include storage or advertising costs. There may also be costs incurred for Premium services.
Amazon UAE Fulfilment Options
There are three fulfillment options open to you as an Amazon seller in the UAE. We discuss these below:
Fulfillment by Amazon (FBA)
FBA is the most trouble-free option for new Amazon UAE Sellers.
With FBA, you ship your goods to the Amazon warehouse and Amazon stores and pack and ship your products on your behalf. Once your business has taken off, it may be time to consider one of the other two options.
Easy Ship (ES)
Choose Easy Ship if you prefer to store and pack your products yourself. Then use Amazon’s extensive logistics network to ship your products to your customer.
This is a good option for Amazon sellers with a fairly large delivery book and a need to carefully manage costs.
Self-Ship
If you’d prefer to manage your own storage, packaging, and distribution, you can opt to self-ship.
This is a good choice for sellers with their own warehouses and transport contracts. Delivery of large items is also often cheaper using the self-shipment option.
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FAQs
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Articles from Marj Tugahan
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