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How To Start an Ecommerce Business in Dubai

The future of eCommerce seems to be incredible. Brick and mortar stores that temporarily closed during the pandemic may never reopen. We have dramatically switched into an era where online shopping is a necessity, not luxury.

If you are a Dubai resident, the increasing financial pressures might be debilitating. Ecommerce has swooped the landscape with a new wave of uncertainty. If you are hanging on a thread, this blog is what you need to kickstart your virtual entrepreneurial journey in UAE.

According to Statista, eCommerce in UAE will reach US$ 7,456m in 2021. The number of users in this market will amount to 6.8m by 2025. Given these figures, you must start an eCommerce business in Dubai right away.

Here are 5 tips to help you through the process:

1. Decide your business activities and license types

The first step to building an eCommerce business is to know what products/services to sell. This is one of the most challenging parts of initiating an online company all over the world. The entrepreneurs have to validate their product idea and potential market.

Once done, now is the time to process licences you might need. Most SMEs prefer to opt for a Limited Liability Company (LLC). In Dubai, you have to choose between a free and mainland zone. This depends on the nature of your business. A mainland licence gives you the freedom to sell or trade products to the local market. Meanwhile, a free zone licence requires you to work with local distributors.

You have to choose by evaluating factors that will bring more perks for your company regarding market scalability and reach.

2. Design and launch your website

Website is the lifeblood of an eCommerce business. It may take some time to build and test your website.

Competition in eCommerce is quite fierce. You should understand the basics of Search Engine Optimization (SEO) to climb the grid. Ensure that your portal has all that it takes to showcase your products/services and take prospects through the lead generation process.

It would help if you stayed on your toes before the site goes online. An income-producing website should have a user-friendly structure, a high-level security algorithm, and mobile usability.

3. Integrate online payment gateways

One of the best ways to reach new customers is to provide a diverse range of payment options. The right mix of payment gateways will help to complement and support your self-hosted store. Integrated secure payment gateways covering pre-paid card systems and credit card payments are the most convenient ways to achieve this.

Another payment option is cash-on-delivery. This comes in handy for small-scale companies. Many eCommerce companies in Dubai are using this payment mode.

4. Get an office/warehouse

If you are an online entrepreneur, you need an ideal space to keep your goods. A storage facility is a place where you could store and pack your products. Many of the world’s largest businesses started from the garage. Hence, you can have a personal warehouse or lease a place.

All brands in UAE must have a registered office address. Thus, make sure you have one to proceed with the licence acquisition process.

5. Market your products/services

Once your business is ready to pop into the market, it is crucial to pay close attention to the marketing domain. You must have an effective marketing plan that falls in line with our business culture. It should target the needs and wants of the prospective customers.

An ideal marketing plan will have a detailed description of the channels it tends to use. Plus, having the right marketing team up your sleeve will enable you to schedule posts for social media channels. They will also devise a solid advert structure to target potential customers.

Where to register?

To set up an online business in Dubai is not a hassle. The Department of Economic Development does not have a special licence for eCommerce for expatriates. If you are one, it is a piece of good news for you.

Any business can go online, regardless of the licence it has. There are several ways your business could go online:

  • Facebook
  • Instagram
  • Phone apps
  • Website
  • Portals like Amazon

As soon as you know how you will swim the digital waters in Dubai, get requirements from third parties involved. For instance, if you are planning to sell on Amazon, you need a licence with the ecommerce activity required from them.

Most people prefer to register online businesses through free zones. Following are the free zones that have a dedicated licence with ecommerce activity:

  • IFZA
  • RAKEZ
  • DMCC
  • UAQ free trade zone
  • Fujairah Creative City
  • DTEC
  • Ajman Media City free zone
  • SHAMS

Verdict – Starting an Ecommerce Business in Dubai is as easy as making a pie!

Well, if you know how to make one.

Dubai hosts a large, densely connected population with many government-led initiatives. This will fuel ecommerce growth in the upcoming years. Dubai is coined as the next Chinese Silicon Valley. There is no better time than now to invest in an ecommerce setup here!

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