Selling Online on Amazon
E-commerce business is at its peak during these times. Middle East is quite a hotspot for E-commerce. For small businesses to big multi nations, all come online to sell products online. Some online sites in the UAE are Amazon, Wadi, Namshi, Desert Cart, Sharaf DG. Amazon started its presence in the UAE by purchasing Souq.com. It was officially renamed in 2019 after the acquisition of Souq.com. Amazon, from its start, has become a big name in providing platform for e-commerce business. The success of Amazon is shared by many sellers. The brand name of Amazon and the existing infrastructure of Souq.com has helped Amazon to make a quick impact in the UAE market. Selling online on Amazon is incredibly easy and straight forward. After setting an account on Amazon. The business can start in days.
The sales exceeded USD 350m last year and is expected to increase further. Online sales revenue increased 300% to $10 billion in 2018. The increase was a result of increased spending of shoppers. An average online shopper spends $1648 every year. More than 63% of UAE participates in online shopping. Moreover, The UAE government encourages the set up and growth of online business reflected in the UAE Vision 2021.
License is required to sell online. One can take license either from the mainland or Free Zone. However, Free Zones are most suited as they have 100% tax exemption, zero currency restrictions.
Benefits of selling on Amazon.ae
- Access to global market
- Easy to set up business as it just takes few minutes.
- Readymade infrastructure is available.
- It has an affordable access and minimal set up cost.
- Site also offers onsite, storage facilities in the form of Amazon fulfillment center.
- Amazon also pays to follow your research, research on competition, top selling items, etc.
Steps to start selling on Amazon.ae
One needs to follow the below steps to start selling online on Amazon
- Firstly, choose and register your company name. You have to make sure not to use offensive / blasphemous language. One can use only full name, no surnames or initials. Also make sure to see if trade name is available.
- Secondly, apply for the e-commerce license. Free Zone does not require additional approvals to trade. The process is faster and efficient in Free zones.
- Thirdly, if the owner requires a visa, he can process his resident visa. For visa purpose, you need to conduct a medical test and also provide biometric information. You can also sponsor visas for children, wife and parents.
- Fourthly, after you get the license and visa, you have to open a bank account. It is best to open an account with the help of a business consultant. They assist you in opening a bank account by furnishing the required documents accurately.
- Fifthly, visit Amazon Seller Central. Click on sign up and follow the instructions to complete the process. The application takes minutes, and it is reviewed in 24 hours to 1 week.
- Business name, address and contact information.
- Valid bank account, billing address and phone number.
- Emirates ID and Trade license.
Online selling in the UAE requires an e-commerce license. A fine up to Dh 500,00 for selling on social media without license. In 2018, UAE Ministry of Economy teamed up with Telecom Regulatory Authority to shut down unauthorized e-commerce websites and social media pages.
In short, the process of getting a license and starting online business is simple, however, it needs in-depth knowledge of the region, customs and regulations. We at Beyond View advise on the process, help you get the most suitable license and visa free of errors, handle government formalities, get permissions and work permits.