The UAE e-commerce industry is vast, with many flourishing local and international brands and a strong consumer market. While traditional methods of running a business limit sellers to only a specific audience, e-commerce marketplaces help them reach out to a vast audience easily and quickly. E-commerce has changed how businesses operate and made it easier for new sellers and startups to nurture their businesses and grow their sales.
If you plan to start selling online in the UAE, this land welcomes you with its growing online shopping market, trends, and unlimited opportunities to skyrocket your sales in the mature consumer market. This blog post guides you through the necessary steps in setting up your online selling business on an e-commerce platform so that your business can thrive and grow.
Benefits of Selling Online in the UAE
The e-commerce industry in MENA showed a whopping 30% growth in 2024, which signifies how inevitable this industry has become for economic development in this region. Moreover, the UAE’s e-commerce industry is expected to reach $17 billion by the end of 2025. These statistics regarding the consumers’ buying patterns in the UAE indicate that the e-commerce industry is growing and encourages local businesses to expand their digital footprint.
E-commerce marketplaces have emerged as strong platforms for online sellers, giving their e-commerce businesses instant exposure. Native Emiratis and residents love to shop from the comfort of their homes without having to step out to their favorite shops and brands. Since e-commerce marketplaces are accessible through smartphones, this adds to shoppers’ convenience.
If you are a seller who hasn’t considered expanding your business to an e-commerce marketplace yet, here are some of the perks you probably miss out on.
Achieving an established customer base
Millions of shoppers across the UAE trust and buy from the well-known e-commerce marketplaces like Amazon, Noon, DeliverIt, giving e-commerce businesses broad exposure. Multiple ratings and reviews make sellers trustworthy and increase their credibility. Moreover, when you sell online, unlike traditional brick-and-mortar stores, you are not limited to serving only a specific number of consumers. Instead, you approach a wider audience with different preferences and backgrounds.
Hassle-free Business Setup
Starting online selling on an e-commerce marketplace is quicker and simpler. These marketplaces offer smooth online selling operations that help businesses achieve their goals without additional stress. The sellers can get their e-commerce store up and running without technical knowledge. The seller onboarding process is usually more straightforward and only requires essential data. Marketplaces offer several tools to upload products, manage inventory, promote products, and more, so the sellers may start selling online faster with lower barriers to entry.
Convenient payment settlements
When using an e-commerce marketplace for online selling, the seller doesn’t have to worry about payment settlements. The marketplace collects consumer payments via accessible payment methods and settles them to the seller’s account within a defined period. This reduces the manual workload on sellers and helps them predict their sales.
24/7 store accessibility
One of the great perks of running your business on an online marketplace is that your store is accessible 24/7, meaning shoppers can shop whenever they want. This constant accessibility increases sales compared to physical stores that remain open only during traditional business hours.
Lower operational costs
With an online store, you don’t have to worry about the expenses of maintaining a physical store, such as rent, regular repairs, electricity bills, furniture, fixtures, etc. Not only that, but using the e-commerce marketplace’s framework cuts down on significant upfront costs, such as development, maintenance, updates, etc.
Reduced marketing expenses
When you are selling on e-commerce marketplaces, you don’t have to be concerned about the marketing and advertising costs of your business, as these marketplaces have already spent heavily to attract targeted consumers. The sellers can take advantage of the popularity of these marketplaces and get relief from the marketing expenses.
Opportunities to scale
E-commerce marketplaces give sellers great opportunities to grow their online business. They don’t have to change their entire commerce business infrastructure and can easily add new products and offerings without compromising performance. Sellers can easily fulfill the growing customer demands and increase their revenue.
Less to no technical troubles
The online marketplaces are responsible for maintaining the infrastructure of their platform and have an extended team to manage listings and the rest of the technical aspects. It means that you don’t have to handle any technical aspect of the tools offered by these marketplaces, which you might otherwise have to manage in case of your website.
Stress-free logistics and shipping solutions
The majority of e-commerce marketplaces manage the shipping and delivery of the orders placed by the consumers. Since shipping is one of the significant concerns when selling online, online marketplaces such as DeliverIt also reduce this burden by directly managing it. The DeliverIt delivery personnel collect the orders from the seller’s warehouse or location and ship them directly to the consumer’s doorstep, saving you a lot of time and money.
How to start online selling in the UAE?
The UAE’s regulatory laws and business conditions favor new and established sellers. This financial hub urges sellers from the MENA region to expand their business via e-commerce platforms and connect with a broad stream of buyers. The e-commerce marketplaces are popular in the UAE, where millions of shoppers whirl around to access their desired products. This is why these marketplaces are a go-to for almost every seller who wants to establish their e-commerce business.
However, before you start selling products online, creating an e-commerce store, or integrating into an established e-commerce marketplace, you should be clear about your goals and develop strategies that benefit your growth in the highly competitive market. This detailed guide lets you look closer at how you may start your product-selling business online in the UAE e-commerce marketplace.
Register your business and get your e-commerce license
E-commerce sellers must acquire the necessary e-commerce license by registering their online business under the Mainland or Free Zone Authority. The Department of Economic Development (DED) can help you obtain the license of your choice under the respective Emirati regulations. Whether you want to sell through your website or register under the e-commerce marketplace, you should comply with the business standards set up by the UAE’s Government so you can work under the legal framework and appear trustworthy to investors and buyers.
The required documents for an e-commerce license include proof of residence, passport copies, and passport-style photographs. These documents, the license application, and the required fee are submitted to the authority’s online portal or office. Once your license is approved, you can legally start selling products online in the UAE.
You may acquire a business license based on your goals and targeted market. For instance, if you want a Free Zone license, you must partner with a distributor within the UAE. The businesses that operate with the free zone license do not have to pay corporate tax and can even enjoy exemption from import and export duty tax. The Mainland license, on the other hand, allows your business to operate within the UAE and sell your products directly to the consumers locally and globally, without requiring a local agent. The Mainland license holder has complete control and ownership of their business, which enhances credibility on a global scale.
Choose a selling platform
Your e-commerce journey starts with picking a suitable platform for your online business. You may create an e-commerce website that gives you complete control over your online store aesthetics, marketing your business, and interaction with potential shoppers. With an e-commerce site, you can build a unique business identity in the digital world and do whatever you want regarding design, branding, content, and marketing. However, creating an e-commerce site requires professional expertise, time, and cost, and you also have to optimize it and build marketing strategies (SEO, ads, social) to appeal to your targeted consumers.
A quick, cheap, and stress-free alternative to the e-commerce site is the e-commerce marketplace, where you can register your online business and start selling directly from there. One of the major perks of using an established e-commerce platform is that you don’t have to stress about the marketing efforts. Since these platforms already have an extensive customer base comprising millions of active users and a strong infrastructure, you only need to focus on listing and optimizing products and managing your inventory.
The platforms like DeliverIt allow you to create product listings that are visible to a larger audience. DeliverIt handles the advertising and marketing of your products and offers smooth delivery and payment processing, simplifying the selling process.
Recommended Read: Top Online Marketplaces in the UAE
While a dedicated e-commerce site gives you more control over your online store and business, the e-commerce marketplace with an established customer base supports business growth by giving it broader exposure. Whatever method you use, include clear, high-quality product images, optimized product titles and descriptions, and competitive pricing.
Payments
When you create an e-commerce site, you may provide your customers with as many payment options as possible so they may pay at their convenience. However, in an e-commerce marketplace, the marketplace receives the payments from the customers and settles the payments with the seller within a specific time period.
Two of the most popular payment methods used by most online marketplaces in the UAE are COD and credit/debit cards, as people feel more comfortable paying through cards or cash after receiving the parcel. The marketplace you choose may also incorporate payment gateways like PayPal, Payfort, Stripe, Cybersource, etc., that help your business cater to a larger audience. Reputable payment solutions foster a sense of security for customers when making online transactions, boosting sales and improving cash flow.
Different e-commerce marketplaces have different payout frequencies; for instance, some may prefer weekly or bi-weekly payments while some prefer monthly or on-demand payouts. When choosing the DeliverIt e-commerce platform, you will benefit from a streamlined payment processing approach. The seller gets paid every fortnight after a specific deduction of a referral fee. DeliverIt follows transparency and provides sales and payment records via the seller dashboard so the seller understands the sales, margins, and profits.
Partner with a delivery provider
One critical factor contributing directly to the success of your online business is your delivery partner. Nothing can harm your business credibility more than late deliveries or unresponsive delivery personnel. You know how excited your customers are to use your products after they order, but late deliveries can halt their excitement and eventually ruin your business reputation.
Partnering with a reliable delivery service provider is crucial as it builds trust and makes consumers count on you for urgent and on-time deliveries. Most online marketplaces also facilitate sellers with delivery services, which is an added perk.
DeliverIt is a rapidly expanding delivery service provider and e-commerce marketplace in the UAE. We ensure that orders are taken from the sellers’ location and safely delivered to the customer’s doorstep. We facilitate our marketplace sellers with on-time delivery services, and you can also connect with us for your regular business deliveries even if you are not using our e-commerce platform for selling.
We handle delivery-related issues so you can focus only on your business. When using our e-commerce marketplace, you don’t have to stress about choosing a delivery partner. With a proven record of on-time deliveries and extensive geographical coverage within the UAE, you can trust DeliverIt for on-time deliveries across every emirate of the UAE.
Start selling
Once everything is finalized, you may start selling to your targeted consumers online. E-commerce marketplaces like DeliverIt offer tremendous benefits with their established customer base, and as you list your products, you get instant exposure.
You may check DeliverIt’s terms and conditions to see which products we allow to list on our platform. Moreover, there is no setup fee; you only have to pay a certain referral fee (4% to 15%) upon each sale generated and an AED 10-15 delivery fee per order size. Sellers manage their inventory, and our professional delivery riders handle pickup and delivery.
Bottom line
The e-commerce marketplaces in the UAE are an excellent opportunity for sellers to flourish in the online business landscape and attract a new stream of consumers. Acquiring an e-commerce business license, choosing the right platform, and curating business strategies can give your e-commerce business a strong foundation and ensure its consistent growth.
Due to the revolutionary e-commerce trends in the UAE, online businesses have been encouraged to expand to a broader geographical coverage. At DeliverIt, we assist new sellers in setting up an online store and implementing tailored strategies. It is a simple e-commerce marketplace that supports new sellers and doesn’t require additional setup expenses.
Connect with DeliverIt today and start selling online with confidence.
Frequently Asked Questions
How can I start selling online in the UAE?
To start selling online in the UAE, you must get an e-commerce license from a Free Zone or Mainland authority. Once you acquire the license, you may create an e-commerce site or choose an e-commerce marketplace to set up your online business. Optimize your product listings and start selling to your targeted audience.
Why should I acquire an e-commerce license to start an online business in the UAE?
Acquiring an e-commerce license is necessary to start selling online in the UAE as it ensures your business’s compliance with the UAE’s regulations. Operating an online or offline business in the UAE without a license is illegal and can get you in serious trouble. The e-commerce license ensures your online business credibility and depicts your commitment to following business regulations. You can easily open a business bank account with the business license. Moreover, you can also secure a partnership with the investors and suppliers.
Should I create an e-commerce site or choose an e-commerce marketplace to sell online?
An e-commerce site gives you more control over your website’s appearance. You can customize it to create a unique brand identity and establish a direct connection with the consumers. You can get higher profit margins since you don’t have to pay commission to the marketplaces.
E-commerce marketplaces, on the other hand, are more suitable for startups and new sellers who don’t want to spend money on marketing and advertising. Your business can get immediate exposure since the established marketplaces already have a large customer base. Choosing an e-commerce site or marketplace depends upon your business goals and resources.
Does DeliverIt also manage product deliveries?
Yes. DeliverIt is a trusted delivery services provider offering on-time deliveries anywhere in the UAE. Its e-commerce marketplace helps sellers sell their products to a large audience, and the delivery personnel ensure that every order is picked and delivered safely to the customer’s doorstep. When using DeliverIt e-commerce marketplace, you don’t have to search for a separate delivery provider as we handle everything from order picking to delivery to payment settlements.
