Amazon is unquestionably the most popular e-commerce platform in the United Arab Emirates. Around 40-45% of UAE residents make their purchases from this global e-commerce website. It even allows sellers to readily enter the UAE market and gain direct access to millions of consumers. However, before planning an online store setup, it is crucial to learn how to sell on Amazon in UAE.
Benefits of selling on Amazon in the UAE
Being one of the leading global retailers, Amazon boasts unparalleled traffic. Besides, with the increasing competition, the demand for online shopping is also shooting up. One can find numerous benefits of selling on Amazon UAE.
- Easy entry with low investment – For aspiring entrepreneurs who don’t have much capital, Amazon has easy access. Not only are the listing fees low, but the seller does also not have to pay until something sells.
- Instant access to millions of customers – When we think of online shopping, Amazon is the first port of call. The global platform has millions of potential customers and many sales.
- Advantage of Amazon’s reputation – When you start a new business, one of the hardest parts is establishing a reputation, or else it would be hard to sell the products or services. However, with Amazon being a highly trusted global brand, you can leverage this golden opportunity and tap into its reputation, thereby reaping the rewards for your business.
- Brand and product visibility – Using Amazon’s global reach, you can build up your brand identity, thus getting millions of eyes on your products. This way you won’t have to spend capital and resources on marketing strategies.
- First-rate shipping – FulfilmentBy Amazon (FBA) is one of the features of Amazon where the products are picked, packed, and shipped directly from the warehouse by Amazon. This means the seller can offer Prime shipping to high-paying clients and also be saved from the hassle of shipping logistics.
- Higher sales – Every month millions of users from around the world visit the website, and a significant number of users are from the UAE itself. This is all because of the increased global preference of Amazon for online shopping. Sellers on Amazon can benefit by launching their business on Amazon and deriving more credibility for their new brand.
- Useful shipping solutions – There are several shipping and delivery options offered by Amazon UAE. For instance, the sellers can either store and ship the products all by themselves, store their products and leave the shipping task to Amazon, or entirely depend on Amazon to store, pack, and deliver the products.
- Multiple pay options – The payment choices on Amazon include credit cards, bank transfers, e-wallets, direct debit, and more. In addition, the vendors as well as customers can also avail the benefit of fraud protection.
- High Internet users – The usage of smartphones and the Internet is on the rise globally. Even in the UAE, the mass population uses social media. The growth in the use of digital media has led to an increase in online shopping.
- E-commerce policies of the UAE government – The goals of the UAE government regarding the growth of e-commerce in the country are as follows – creating a global logistics hub, streamlining customs clearance and reducing fees, increasing the market share of companies based in the UAE, attracting more foreign investment into e-commerce through reduced regulation, and enhancing the online shopping experience for users.
- Digitalized technology – The restructured digitization has been well accepted by the community, simplifying access to online resources for the users. This will eventually drive online sales.
- Excellent logistics and distribution – The UAE has been regularly investing in the logistics infrastructure and aims to become the logistical hub of the Middle East. It encourages low logistics and operational costs to ensure that it continues to attract investment.
- Huge market – Amazon is the most preferred site for the UAE residents. Around 40% of shoppers in the UAE spend at least 25% more on this website compared to its competitors.
- Flexibility – Amazon offers different work arrangements for different companies depending on your requirements. For example, the seller can have orders fulfilled by Amazon or get them fulfilled by themselves by gaining access to their warehouse and delivery methods.
- Powerful tools – With Amazon, you can sell more products, advertise them, and expand seller pages, thereby attracting more potential customers.
- No income tax – Amazon sellers in the UAE are subject to 0% income tax on their profits. Besides, if they are registered in any of the free zones, they can also avoid VAT and enjoy 100% foreign ownership.
Legal requirements for selling on Amazon UAE
Opening an Amazon UAE seller account requires the completion of a documentation process which includes the following:-
Company name
While pondering upon how to sell on Amazon in UAE, the first thing to do is decide on a business name. The UAE has strict company naming criteria that restrict the use of blasphemous, offensive, and obscene language.
Contact details
The sellers on Amazon need to provide their contact information including their legal names so that customers and Amazon to reach them directly.
Read also: Data-Driven Marketing Strategies: Using Consumer Insights for Competitive Advantage
E-commerce license
An ecommerce license in Dubai will allow sellers to operatean e-commerce business in the UAE.
Visa
Foreigners living in the UAE and selling their products on Amazon UAE would require a valid visa.
Business bank account
Amazon sends the proceeds of the sales to the seller usually every 14 days (about 2 weeks). To receive this payment, the seller would require a corporate bank account in the UAE which they can set up with the help of a valid e-commerce license and visa.
Billing address
For setting up an account on Amazon UAE, you would require a valid address as proof of identity.
Phone number
You would require a valid phone number as proof of identity for establishing an Amazon account in the UAE. So, once you acquire a National ID, you can sign up for a phone contract.
National ID
You would also require legal proof of identity to set up a seller account on Amazon UAE.
How to sell on Amazon in UAE: Steps
Though you can sell anything on Amazon in the UAE, there are certain things to be aware of before going into business. So, here are a few steps explaining how to sell on Amazon in UAE –
- Understand the market
- Select a plan
- Sign up as a seller
- Obtain a license
- Listing of products
- Delivering the products
- Payment for the products
- Maintaining track of the operations
Cost of E commerce license Dubai
So, what does it cost to sign up as an Amazon seller in the UAE?
- Referral fees – This is the amount charged by Amazon for every item sold. The amount varies according to the product category.
- Fulfillment fees – The Prime Badge on Amazon promises reliable and free shipping, which tends to bring in more customers. When the seller uses Fulfilment by Amazon, the task of storing, packing, and delivering the products is performed by Amazon, and it charges according to the product weight and dimensions.
- Other costs – It includes storage or advertising costs, premium service charges, etc.
Choose Shuraa Business Setup
At Shuraa Business Setup, their experts can walk you through the process of opening a seller account on Amazon UAE and support you in all aspects of setting up your e-commerce in the UAE. They have highly experienced e-commerce support teams that can assist you with everything you need, from listing products to applying for licenses.
For more information on Amazon UAE and how to sell on Amazon in UAE, contact Shuraa today!
