eCommerce in UAE is witnessing a rapid spike in growth, especially with the Pandemic. There is a rapid evolution in the eCommerce ecosystem in the region. These include Selling Items on Social Media and eCommerce Platforms in UAE
To become a social media seller and sell clothes, shoes, perfumes, or even own craftwork to customers, it is essential to apply for the right business license to operate legally in UAE. All economic activities in UAE are regulated and sellers need to have a valid trade license to operate.
Trade license and Ecommerce License Mandatory for Selling Items on Social Media
There are a host of counterfeit items sold on social media platforms ranging from bags, perfumes, watches, accessories, cosmetic products, etc. Hence, consumer protection and safety are essential for customers.
The Government of UAE is keen to eliminate such illegal transactions and has mandated the online seller to have a valid trade license and eCommerce license for conducting online sales.
Hence having a business license is mandatory for the businesses to remain safeguarded, obtain a legal shield, and for the UAE Government to keep track of any counterfeiting or illegal commercial activities.
UAE is becoming the Ecommerce Hub of the Middle East
UAE Is transforming itself into a global eCommerce hub with more companies venturing into the market, growing business infrastructure, technology adoption, and a rising population.
There are enormous opportunities for start-ups in the eCommerce sector in UAE. From selling goods online to logistics and technology support, the eCommerce ecosystem is growing in the region. The company can sell Items on Social Media and other e-commerce platforms. using the eCommerce license issued in UAE.
Selling Online in UAE Via Amazon
The Amazon FBA (Fulfilment by Amazon) is a becoming popular means to earn money through selling online via the Amazon online store.
For start-ups, traders, and entrepreneurs, who wish to spread out their business and grow revenue registering as a seller in Amazon UAE is a prospective proposition.
The pandemic has led to a surge in digital interaction among buyers and sellers, and the Amazon FBA is an existing income-generating avenue that is growing in popularity in UAE.
The FBA Platform from Amazon to drive Online Sales in UAE
The FBA Platform from Amazon deals with third-party sellers as well as licensed sellers. Most of Amazon’s sales in the UAE come from third-party sellers.
What is ‘Fulfilment by Amazon’ (FBA)?
It is a popular way for the seller to directly ship their products to an Amazon Warehouse. Then Amazon will handle the sale, which involves picking the product from inventory, shipping, customer service, and returns. Selling Items through Social Media the company has to control all these operations.
With the advent of the Pandemic, the online space as a whole and Amazon have its active digital customers on a spike. Provisions such as the FBA helps individual sellers to raise their profit margin. It is working out for sellers as well customers to find their niche products online.
Order Fulfilment Options for Sellers on Amazon
There are three options for order fulfillment when it comes to selling products online via Amazon:
- Pack and Ship the Product by the Seller (As Fulfilment by Merchant or as a Seller Fulfilled Prime)
- Outsourced storage, packaging, and shipping to Amazon using FBA
The seller can switch between the order fulfillment process any time after they have put up the product for selling via the Amazon website. That way, the seller can enjoy peace of mind and Amazon does the heavy lifting work of packing, sending out the order, handling customer queries, etc.
Cost of Storing your Products at Amazon Warehouses
There are storage and fulfillment fees to be paid to Amazon. The more the investor store, the more the expense. Also if goods are stored for more than 180 days, the cost goes high. It is to increase the turnaround time and keep products moving.
With FBA, the storage and inventory fee is relatively cheaper. The seller need not spend large amounts of capital upfront for storage space.
Depending on the package sizes the cost of storage varies. For small and lightweight packages, the price is USD 5 and for medium, to large heavy boxes, it is USD 13. The exact quote will be received while setting up the account and entering the shipment information before making the final confirmation.
Maintaining the required inventory of the product in Amazon’s Warehouse is the responsibility of the seller. Also, the seller must follow the strict packaging guidelines of Amazon while delivering it to the warehouse. The packaging and delivery to the customer are by Amazon.
How to Start Selling Items on Social Media in UAE?
It is mandatory for a trader, entrepreneur, or start-up to have a valid trade license to conduct any form of commercial activity in the UAE. This includes Selling Items on Social Media and other online platforms. For trading in the online space, an e-commerce license is mandatory. The seller can then open a seller account on Amazon or other online portals and conduct trade.
The Free Trade Zones of UAE and the Department of Economic Development issued the eCommerce license for the foreign investor. Based on the business activity and way of doing business the investor can choose the right business jurisdictions.
For venturing into UAE local retail, obtaining the trade license from DED is the right option. To drive more international trade and expand the business to new locations, the Free Zone company license is the ideal choice.
To know more about the license for Selling Items on Social Media and starting an eCommerce Company in UAE. Talk to our expert team right away!