Steps to start an e-commerce business in Dubai

May 12
18:44

2021

Decisive Zone

Decisive Zone

  • Share this article on Facebook
  • Share this article on Twitter
  • Share this article on Linkedin

The UAE is considered as a powerhouse of the fastest-growing region for eCommerce in MENA region. It has taken its own way to digital adoption and remains the fastest-growing for eCommerce globally. In the UAE, Dubai remains its position as a hub for eCommerce growth, whether in attracting new start-ups or in developing multiple channels to ensure safe and secure payments.

mediaimage

Here are the basic steps to get started your e-commerce business in the UAE. 

 1. Choose Jurisdiction 

Before starting your e-commerce license application,Steps to start an e-commerce business in Dubai Articles It is important to know about the jurisdictions in the UAE. Mainly there are two options – free zone or mainland. When you decide to set up in the mainland, you are free to trade directly with the local UAE market without a local agent, and you are permitted to take on often lucrative government contracts.

When you opt for the UAE free zone, you can enjoy the benefits of UAE’s zero per cent tax rate, you can also take advantage of full customs tax exemption, no currency restrictions and the ability to repatriate 100% of your capital and profit. However, you will require the help of a local agent or distributor if you wish to trade directly within the local UAE market.

2. Get an e-commerce license

After deciding your e-commerce business activity and the jurisdiction, next is to apply for an e-commerce license in Dubai. If you are setting up your company on the mainland, DED will be the license issuing authority. There are related authorities for each free zone to issue the license. This step will require documentations and it might be confusing for the business owners. It is advisable to get professional support from business setup consultants in Dubai. 

3. Launch your website 

A successful eCommerce business starts and ends with the website. A website will be the first impression of your online business where you can showcase your products or services. It might take a while to design, develop and test a new website but it is worth spending time on developing a user friendly, dynamic, secure and attractive website to capture the user’s attention as it will be an income-generating source for your business.

4. Integrate payment gateways

Payment gateways fortify the security and customer data which can reduce the chances of credit card fraud in an e-commerce business. Integrated secure payment gateways that include credit card payments and debit card systems are the most convenient ways to do this. Another payment option is cash-on-delivery (COD), which comes in very handy for different situations.

5. Logistics and distribution

It is mandatory to have a warehouse when you are selling physical products. Which is an important factor when you decide the jurisdiction also. Once you have set up the warehouse and office space, you need to get a highly reliable and secure logistics system to ensure seamless and easy delivery of products to the consumers. Logistics is a vital element of a successful supply chain that helps to boost sales and the profit of businesses which involves production, shipment, warehousing and delivery. A trustworthy logistics service can increase the value of the business and help in branding. 

6. Marketing your products/services

There are endless options for promoting your new product or service. It is tricky to find where to start with and which one will give you the best results. Different channels are working in various ways depending on your offerings and target audience. When your business ready to roll out in front of your customers, it’s the perfect time to create an effective marketing strategy. It is necessary to align your product or services to your target customer needs. 

 

These are the basic steps to get started your e-commerce business in Dubai. These mentioned steps can be varied and you may need to take additional depending on the nature of your business activity. Successful establishment of your e-commerce business in Dubai can be done effortlessly with the help of experts. It is advisable to get the consultation of professionals in business setup and PRO services in Dubai. The company formation specialists at Decisive Zone will guide you through the process and help you to establish your e-commerce business quickly without any delays.