Online business, knowingly or unknowingly has eventually become a part of our everyday life. The fact is that it is going to evolve even more in the future with ecommerce business leading the list, owing to the continuous increase in the number of online shoppers. Ever since ecommerce came into action, there have been no turn-backs. In earlier times, ecommerce or electronic commerce was limited to operate in a few countries of the world. Today, ecommerce has evolved in a way that people have considered and adapted it seamlessly.
Now, more and more countries are acknowledging that we can purchase anything from around the globe within a few steps and transparent, secure payment methods and data security. Especially during these coronavirus outbreaks, the number of online shoppers has significantly raised throughout the world. UAE is known to have the most advanced ecommerce market in the entire MENA (Middle East and North Africa) region. And among all the emirates, ecommerce is growing at the fastest rate in its most populous city, Dubai. The numbers of people shifting to online shopping from traditional methods are significantly increasing with the blooming of the ecommerce industry in the Middle Eastern region. If you are looking forward to starting an ecommerce company in Dubai, this article is for you!
How to give a kick-start to your ecommerce business in Dubai?
To establish an ecommerce business in Dubai, it is the best time like never before and we are not joking. Dubai has put significant efforts into establishing the region as a major ecommerce hub. With the rise of emerging online markets and growth of Social Media, the trend of ecommerce businesses has doubled. Like all other regions, newer ecommerce businesses are established almost every other day and the outstanding services of the government have motivated more people to invest in it. Dubai is known to be the shopping hub for people from all over the world. Although the traditional brick and mortar stores are visited by visitors and emigrants, the locals of the region now prefer to shop online. The Ministry for Economy in Dubai has built an initiative of Digital Protection that allows ecommerce businesses to be certified for secure online transactions. This step has significantly boosted the consumer confidence for ecommerce businesses in Dubai. With UAE being one of the most technically advanced countries of the world, setting up an ecommerce company in Dubai is a brilliant idea. Moreover, it is probably the first emirates that are sponsoring digital coins.
Essential Facts and steps you must know to start an ecommerce business in Dubai
In order to simplify your efforts in starting an ecommerce company in Dubai, we are providing a few facts that may help you. Below are the facts and steps you must be aware of before starting an ecommerce company in Dubai:
Researching
Irrespective of the location of the ecommerce business, conducting full-fledged research is always a great way to start your ecommerce business. With ecommerce industry escalating speedily in Dubai, the competition in the market is incomparable. Therefore, choosing a niche for your business is an easy way to channelize your services. Make sure to invest your quality time in researching and choosing the right niche for your ecommerce business in Dubai. It must be based on the requirements of the audience you are targeting to sell your products, your business interests, and current market requirements.
Online shopping is flourishing in Dubai
In the Middle East, online shopping is significantly on the rise by about 1500% in the last decade. The region has recorded with the highest internet penetration in the world. A whopping number of people prefer online shopping from local UAE websites rather than the global ones. This itself shows the potential of ecommerce growth for local websites to overpower global ecommerce giants such as Amazon. Moreover, ecommerce business in Dubai is assured to grow to a billion-dollar industry really soon.
The licensing process in Dubai
The process to get a license for an ecommerce company in Dubai is quite simple and easy. The business owners can pick the legal body to start the online business regarding the free zone and the non-free zone. The Free Trade Zone (FTZ) in Dubai is referred to the Special Economic Zones that are set up to offer concessions in the tax and benefits of customs duty for emigrant investors. In free zones, you’ll get 100% foreign ownership and in the non-free zone, you’ll need a 51% local partner. The significant advantages of operating in a free-zone company are that there is a 0% income tax, 100% repatriation, and negligible custom duties. There are many free-zone areas in Dubai wherein you can set up your ecommerce company as per your business requirements and interests. All the licensing procedures are to be done with the authority of the free zone you have chosen. On the other hand, if you are choosing to operate in the non-free zones, you’ll need to get the licensing done from the Department of Economic Development or DED.
The Infrastructure of Ecommerce Company
It is well-known that the infrastructures of Dubai are the best compared to all others in the world. In Dubai, you can get access to world-class amenities in an affordable price range. In some case, you may require the help of a local resident or sponsor to help you purchase a space for your company set up as foreign nationals are allowed to purchase land in Dubai. The utility services and round the clock security services in Dubai are unmatched. Moreover, as mentioned above, due to the seamless internet penetration, there is high-speed internet connectivity in the region by which you can boost your services of the ecommerce company effortlessly.
Ecommerce Website and Domain Name
When it comes to an ecommerce company, the most essential factor for the development of the business is a website. Today, having websites for businesses is considered as the core of establishing the authenticity of a company. For creating a website, you need a domain name which is the identity of your business wherein you get a URL using which online visitors can locate your website. It is essential that your domain name must be unique. You need to register your domain name and many companies do that job for you in a jiffy. Now, while choosing your domain name, you must be sure that it defines your brand and that it is something that can be easily remembered as well as used by your potential customers.
Integration of Payment Gateways
Now comes another important factor of establishing a successful ecommerce company in Dubai, the integration of Payment Gateways. You can easily find many vendors online who can integrate the payment gateways for you. Your job is to research the success rate and stability of the payment gateways you choose. The more stable your payment gateway is, the higher will be the online traffic transaction support it offers and your overall success rate. If you offer multiple payment gateways, the chances of more people shopping from your ecommerce company may significantly rise.
Logistics Services
The commerce business strongly requires logistics services, import and export documentation, customer support, as well as delivery services. Without a strategic approach to these services, your ecommerce business may become stagnant at a certain point. Talking about the services in Dubai, you can either provide your own services or you can hire third-party services for the same. Based on your financial health for the business, you can choose from self-hosting and third-party services for your ecommerce business.
Warehousing of your Sellable Products
For ecommerce businesses, you’ll need to keep goods in stalk for an uninterrupted delivery to your customers. This is when warehousing of your sellable products is useful. You can choose to store products in warehouses for the smooth management of the Supply Chain. Just as the logistics services, you can choose to establish your own warehouse or consider availing third-party services for the same.
Benefits of Establishing an Ecommerce Business in Dubai
There are a few incomparable benefits of establishing an ecommerce company in Dubai (if in the free-zones), they are:
- No taxes and fees except for a 5% VAT charge.
- 100% ownership of a foreign company
- Lower operating expenses
- Chances of obtaining resident Visa which a=has the scope of renewal
- No currency restrictions imposed on the withdrawal of capital
Conclusion
The ecommerce industry is on a constant rise. Moreover, it has become necessary with people connecting from all over the world using the internet. Especially in Dubai, the ecommerce business has bloomed considerably and in the coming years, it is estimated to add more revenue to the economy. Therefore, if you are thinking to take a plunge in establishing an ecommerce company in Dubai, there is nothing to think twice. Your ecommerce business is at the safest place to develop in Dubai. You have got bonus information as well; you can start your ecommerce business online by registering with builderfly.com. Moreover, there is 14-days free trial period for you to explore its extensive features before investing your money.
