How to start an e-commerce business in Dubai

Before addressing how to establish an e-commerce business in Dubai, it is necessary to first grasp what e-commerce is all about. E-commerce, in its broadest sense, refers to any economical transaction that takes place online and is facilitated by technology. This transfer may take place in the form of funds, money, or information. It is possible to further classify these virtual transactions as business-to-business (B2B), business-to-consumer (B2C), customer-to-customer (C2C), and consumer-to-business (C2B) transactions (C2B).

Several organisations, including the Dubai Economy and VISA, released a joint research titled “UAE eCommerce Landscape” in which they found that the UAE had the most advanced e-commerce industry in the MENA area. According to the findings of the research, this market is expected to expand at a rate of 23 percent each year between 2018 and 2022. When one considers the more positive elements of the epidemic, consumers have grown more tech-savvy and conscientious about visiting congested shopping malls. There is thus considerable opportunity for growth in the e-commerce sector. Furthermore, when you work with the business professionals at Generis Global, starting an e-commerce company in Dubai becomes simpler than before.

How do you get your company off the ground?

Here is all you need to know about the processes involved in starting an e-commerce company in Dubai and getting started with your business activities:

Start by completing your company operations in line with your specifications. The Department of Environmental Defense (DED) maintains a list of more than 2,000 permitted operations, and you may also seek extra permits if a few of your plans aren’t included on the list.

2. Select a company site, whether it is one of the free trade zones or a place on the mainland. If you want to start an e-commerce company in Dubai, you’ll need a physical location. Each place has its own set of benefits and disadvantages that are unique to it.

3. Create a trade name for your e-commerce endeavour and register it. If you are naming your e-commerce company in Dubai, be sure to adhere to all of the naming convention rules and standards that have been established. Please refrain from using disparaging or offensive language or using phrases that are contentious or disrespectful in any way.

4. Once you have completed all of the procedures outlined above, you should apply for an ecommerce licence. All legal entities in the United Arab Emirates are required to have a valid licence in order to do business in the country without encountering any compliance problems.

Hosting an effective e-commerce website can help you attract organic visitors to your online portal and increase sales. If you want to start an e-commerce company in Dubai, it is essential that you have a high-quality website.

Here are some of the fundamental components that any e-commerce business must have:

What exactly do you want to sell?

Given the presence of worldwide e-commerce giants in the United Arab Emirates, you must first choose what you want to offer on your platform. Do you currently own a trading business and want to expand your reach by selling your goods online? Or do you want to become a reseller of other people’s products? You are a reseller, which means that your website serves as a platform for merchants to interact with end users. For example, Amazon and Noon are resellers since they have a large number of vendors from throughout the UAE and from other countries selling their goods on their platforms. Similarly, e-commerce websites such as Namshi and Shein specialise in fashion and lifestyle products for a specific market. A trade business, on the other hand, may grow into the digital marketplace by offering their own goods for sale on the internet. As a result, if you want to establish an e-commerce company in Dubai as a reseller, you need first choose the goods or services you will be offering via your digital platform.

Various jurisdictions are involved.

According to the legislation, only citizens of the United Arab Emirates are permitted to engage in commercial operations on the UAE Mainland. It is very easy to get a licence to do e-commerce business on the Chinese mainland if you already have an LLC firm for which you have formed an agreement with an established local sponsor. In the UAE, however, in addition to obtaining an e-commerce licence, you will need to establish partnerships for logistical operations such as customs clearance and shipping services, among other things.

Creating a business foundation

The digital platform, which is a website, serves as the primary medium for e-trading. The goods are presented here, together with their specifications, so that customers may easily browse and make purchases. As a result, components such as the following are required for a successful website:

Customer registration is required.
Bestsellers or special deals shown on the site
Product pictures and classification are included.
When viewing goods, there is a zoom option available.
Specifications for shipping Contact information and comments
Ratings and testimonials
Trading on social media is becoming more popular.

Keeping track of the different social media sites is a difficult job to do. In order to avoid hefty penalties in the United Arab Emirates, merchants using such platforms must register with the National Media Council.

Gateway for banking and payment transactions

Given the fact that the vast majority of your e-commerce business’s transactions will take place online in Dubai. The digital nature of an e-commerce business means that you must ensure that you have a failsafe solution for monetary transactions in place before you launch your venture. Surely, neither you, nor your suppliers or customers, would want to experience a financial loss or be hacked. You’ll need to form a partnership with a reputable banking partner, or a number of partners. You’ll also need to set up a secure payment gateway so that customers may choose from a variety of payment methods. Some banks in the United Arab Emirates (UAE) also provide tailored packages for e-commerce companies.

Warehouse and office space

If you are selling products on the internet, you need have a facility for storing and categorising your merchandise. Unless you are just getting started and are motivated by the notion that many of the world’s most successful companies got their start in garages. In the United Arab Emirates, you have the option of owning or leasing a warehouse.

A physical location for an ecommerce company in Dubai is required for registration and license-related processes, although this is not the case for most other companies in the city.

Logistics

This is one of the most essential factors in ensuring that the operations of an e-commerce business run as smoothly as possible. The establishment of a suitable logistics system guarantees that activities run smoothly from the point of importation to the point of delivery of products on time.

Providing Excellent Customer Service

The provision of after-sale services should be taken into consideration while establishing an e-commerce business in Dubai. As with the last point, you’ll need a staff of experts to deal with consumer comments and questions as they arise. In order to get this service, you may either hire an in-house team or outsource the work.

Marketing

You are now ready to commence operations after completing the procedures outlined above. By putting in place a solid marketing plan, you can reach out to prospective customers effectively. Make contact with the people who are most likely to become your clients.

Every stage is accompanied by professional guidance.

The process of preparing to launch an e-commerce business in Dubai may be a time-consuming and laborious one. The UAE, on the other hand, offers a pioneer consultancy – Generis Global – that can assist you with everything from prioritising your company objectives and selecting the most appropriate jurisdiction to helping you with your banking needs and completing all of your necessary paperwork. With our comprehensive business support, establishing an e-commerce company in Dubai is simple and trouble-free, from start to finish.