How to Sell on Amazon UAE?
Amazon is a globally recognized company that maintains an online marketplace where users may purchase and sell a vast assortment of products and services. Additionally, anybody who wants to sell their own products may do so using Amazon’s platform.
The Middle East is an area where the number of individuals interested in and using Internet services has exploded. Amazon saw this as a possible opportunity and acquired souq.com, allowing it to enter the Middle Eastern market under the brand name amazon.ae.
Over 63 percent of internet users in the United Arab Emirates make purchases online. Moreover, the pandemic has led to an increase in online sales. It is difficult to locate such a lucrative market, which is why so many individuals are turning to e-commerce platforms such as Amazon to operate their enterprises.
According to statistics conducted by Jungle Scout, 64 percent of Amazon sellers generated a profit in their first year on the marketplace. In addition, twenty percent of these providers accomplished their objectives within the first three months!
This article will help you in becoming an authorized Amazon seller in the United Arab Emirates, regardless of whether you have recently launched an e-commerce business in the United Arab Emirates or want to expand your current online shop.
Here is all you need to know on how to sell on Amazon UAE, and all the benefits of selling on Amazon.
Why you should Sell on Amazon UAE?
Making the transition to selling on Amazon might be the right choice for you if you’re seeking a way of life that provides a healthy work-life balance along with several other advantages.
It is useful to discover what customers are purchasing on Amazon UAE if you are contemplating starting a business there and trying to decide what to offer. The total sales made via eCommerce in the UAE may be divided into four primary categories:
- IT (41 percent )
- Electronics (28 percent )
- Apparel (17 percent )
- Accessories for Fashion and Style (14 percent )
Since Amazon is so widely used, businesses are given instant access to a large number of potential customers at any one moment. Because it has an architecture that is simple to operate, companies have an easier time listing their items on the platform. E-commerce companies who sell their products via Amazon have the opportunity to capitalize on the company’s ongoing introduction of new promotional deals.
Benefits of Selling on Amazon
Amazon UAE is one of the websites that gets the most traffic in the country. It provides a key revenue stream and offers online merchants and company owners tremendous growth opportunities.
Amazon recently finalized the purchase of Souq.com and promptly renamed the website Amazon UAE. This combination has improved the business opportunities in the e-commerce industry, making the market more attractive to entrepreneurs.
Here are some of the key benefits of selling on Amazon in the UAE:
1. High Sales
Each month, Amazon attracts millions of unique visitors who are interested in completing different purchases. Every store that sells its products on Amazon gains instant credibility and reliability in the eyes of its consumers. This is owing to the fact that some people are more likely to acquire a product from Amazon than from a previously unknown retailer. Amazon’s claim that its products and services are better persuades a large number of people to make purchases on its website.
2. Global Market Competition
Because Amazon is one of the biggest and most trusted global selling and buying platforms, it is quite easy to begin selling in a variety of markets. Although they have only created websites for 13 countries thus far, they ship to more than 100 nations worldwide. It is up to the individual consumer to determine whether they are willing to pay a potentially higher delivery fee based on their location.
Compared to alternative shopping cart systems, expanding your company overseas with Amazon is a snap. Magento is distinctive in that it permits many store views, while other systems need you to create a different store for each language. That’s a lot of work without even knowing how successful the product will be on the market.
3. Lower Marketing Costs
Because of your relationship with the firm, you will have access to the millions of customers that already visit Amazon’s website daily. Depending on the characteristics of your market segment and the level of competition, you may be able to start earning sales immediately without putting in any significant marketing effort. Due to the fact that Amazon’s website has its own search engine, customers searching for products comparable to those you offer may easily find you.
Clearly, there is a great deal of competition, and you must find a strategy to set yourself apart from others. Your efforts to use Amazon’s large customer database will be facilitated by a tailored online presence.
4. Warehouse Services
This will allow you to concentrate on other elements of your company since you won’t have to worry about the logistics of delivery. You are free to focus on the administration of other crucial parts of your business as you take delight in the increasing quantity of orders. Amazon FBA, which stands for “Fulfillment By Amazon,” is a service that enables you to utilize Amazon as a shipper, manager, and warehouse for your items at a much-reduced cost. Your products will be immediately eligible for Amazon Prime shipping and Buy Box priority, which will have a substantial impact on your overall sales and spare you from the hassle of doing so.
5. Secure and Protected
Even for Pay on Delivery items, payments are sent directly and reliably into your bank account every week. When you enroll in Brand Registry, Amazon will provide you control over the product pages that use your brand’s name and logo.
6. Flawless Customer Service Support
Receive financial support from Amazon-approved third-party professionals for product photography, account management, and a variety of other services. With Seller Support, Seller University, Help Guides, and Forums, assistance is accessible at the press of a button.
Business Activities Allowed in Logistic license in UAE
The Department of Economic Development must provide its stamp of approval to any and all business endeavors. In Dubai, if you have the appropriate trade license, you are allowed to engage in the following activities:
- Freight brokerage
- Warehouse management
- Cargo transportation
- Third-party logistics
- Shipping line agents
- Customs Brokerage
How to Start Selling on Amazon UAE?
We’ll now outline the steps you need to take to start selling on Amazon UAE. So whether you’re ready to take the plunge or just curious about how it all works, keep reading for more information!
Step 1: Register your Business
To properly register your business, you must provide all of its basic information, including its name, address, and any other essential details. Picking of an acceptable name for a business is not simple. Before company names are recognized as suitable in the United Arab Emirates (UAE), they must comply with a number of restrictions.
1. Acquiring Commercial License
There are two distinct types of e-commerce licenses for which you may apply. The UAE offers both a mainland license and a free zone license for internet businesses. We recommend that you get a license that is valid in free zones.
This license is self-regulated, has no currency restrictions (making it more inexpensive), and there are no customs duty fees. Because no extra approvals are required to do business, the whole process of acquiring a license is simplified and expedited.
2. Phone Number
Get yourself an active registered phone number.
3. Emirates Id
Get your emirates id, issued by the government.
4. Apply For Visa
Those who desire to work during their stay in the UAE are needed to get a work visa. All visa applications must include a chest X-ray, a blood test, a test of physical fitness, and a visit to the immigration facility to have fingerprints and other biometrics collected.
5. Open Bank Account
Then, to get a legitimate credit card, you must have a Business bank account in UAE. In order to configure your payment method, you must submit your credit card information. You will be asked to submit several documents and complete a substantial amount of paperwork.
Step 2: Register Amazon Account
You can set up your Amazon seller account once you have all of the necessary documents and information. Here’s a step-by-step procedure:
1. Access https://services.amazon.ae.
2. Select the Sign-Up button.
3. Enter your name, email address, and password, then click the Submit button.
4. Enter the necessary business information.
5. Upload the necessary identity verification documents.
And there you have it! You simply need to wait until your account has been reviewed before you can begin selling. The review period could last anywhere from 24 hours to a few weeks.
How Much Does it Cost to Be a Seller on Amazon?
The cost of selling on Amazon is determined by your selling strategy, product category, fulfillment strategy, and other factors. The options are adaptable, so you can find the best combination for you and your objectives.
When you open a seller account, you must provide a credit card number as well as a bank account. Amazon proceeds will be deposited into your bank account (pre-deducting the fees). Any charges not covered by the seller’s balance will be charged to the credit card.
Basically, what Amazon charges sellers can be divided into 3 categories:
1. Referral fees
For each item sold, Amazon charges a referral fee. The amount varies according to the product category. The majority of referral fees range between 4% and 15%.
2. Fulfillment fees
The cost of shipping your orders varies depending on whether you use Amazon logistics, Fulfillment by Amazon (FBA), or self-ship your orders.
3. Other costs
Some sellers may have to pay extra fees (such as long-term storage fees) or pay for optional programs such as advertising or premium account services.
The Amazon seller account is very efficient and works methodically to grab the interest of a large audience and update the system at regular intervals with little latency. The method is executed in real-time, and there is no delay in delivering the merchandise to the front door.
We hope this guide on how to sell on Amazon UAE helped you out immensely. If you wanna get started with Amazon in the UAE and need help getting started, reach out to us at Airzone.
If you want to learn more about how to set up a business in Dubai, we have a comprehensive guide for you. With a thorough understanding of the UAE’s business scene, you should be well prepared to establish a company in the country.