How to Sell on Amazon UAE in 2024
Amazon is a globally famous firm that offers a wide range of items and services to its customers through its website. Furthermore, Amazon gives a platform for those who want to sell their products. The Middle East has seen an exponential increase in the interest and use of online services. Amazon saw this as a lucrative opportunity and purchased souq.com, launching in the Middle Eastern market as amazon.ae.
With over $10 billion in online sales income in 2018, the UAE in particular has been extremely responsive to the online market expansion. The strong sales can be ascribed to online buyers’ average spending budgets as well as a lack of fear about purchasing products online. More than 63% of UAE internet users make online purchases. Furthermore, the pandemic has encouraged online purchases. Such a lucrative market is difficult to find, which is why many people are opening online stores on sites like Amazon. In this post, we will look at how to build up your own online store and successfully sell your products on Amazon.
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How to Sell on Amazon UAE – 2024 Guide
Things to think about before selling on Amazon
Before you can begin selling on Amazon, you must first create an Amazon seller account. The registration process for creating an Amazon seller account is straightforward; all you need to do is submit your company’s information and choose a seller plan. The following are the two sorts of seller plans:
a. Individual Plan: This is for people who don’t need any extra selling tools or programs.
b. Professional Plan: This is for people who intend to sell in large quantities and require Amazon’s selling tools in order to do it.
One of the advantages of the Professional Plan is that there is no upfront cost to use this service. When you make a sale through the program, a tiny portion of the proceeds will be used to pay for the Professional Plan. Because of its conditional-installment-based payment method, this pay-as-you-go service reduces the entrepreneur’s financial load.
To complete your registration, you must meet the following requirements:
- A Trade License (for businesses) if you are the owner, and a Power of Attorney only if you are a legal representative “or an account manager”.
- Individuals must provide a recent bank account statement (no more than three months old), credit card statement, or utility bill.
- National identification card.
- A bank account for your sales revenue.
- A company email address or an Amazon consumer account.
- Contact information.
Before you delve into the world of online selling, it’s critical that you choose a profitable line of business in the internet space. The following are some of the most popular product categories among users:
a. Textiles and apparel
b. Handmade items
Electronics c.
Furthermore, the UAE’s buying habits show a strong preference for cash on delivery, with approximately half of all transactions made in this manner. Enabling this way of payment can result in a considerable increase in revenue for your company.
Is Amazon the best platform for your company?
With the aforementioned advantages in mind, selling on Amazon appears to be a necessary instrument for success. Is Amazon, however, the best option for every business?
To find out the answer, you must carefully evaluate several elements. To be qualified to sell on Amazon, your products must meet specific criteria. There is a list of banned items that cannot be sold on Amazon or require special authorization, as well as products that can only be transported locally. Some products, on the other hand, must be modified to match the various customer demands.While Amazon offers this functionality for some products, it is not available for all listings. Finally, if your product is bulky, fragile, or has a limited shelf life, these conditions will make storing and shipping difficult. Another element to examine is the platform’s high level of competitiveness.
If your product does not have a distinct benefit that distinguishes it from the mass of comparable products, you may have difficulty getting a prominent position for it. However, Amazon offers some clever marketing techniques to give your products a more distinct voice.
Advantages of Selling on Amazon UAE
There are various advantages to selling on Amazon UAE. The site has unequaled traffic as one of the world’s largest worldwide retailers. And, as Amazon’s battle is heating up, demand for online shopping is skyrocketing. In fact, Amazon is the favorite retail outlet for almost 65% of UAE citizens. Other advantages and benefits include:
Simple entry and a modest initial investment
Amazon provides an accessible entry point for budding entrepreneurs that do not have much funds to begin with. Listing fees are modest, and you won’t have to start paying until anything sells. Furthermore, Amazon has a thriving market for used and reconditioned goods.
Access to millions of customers right away
When it comes to internet buying, most consumers go straight to Amazon. This translates into millions of potential clients – and sales.
Use Amazon’s reputation to your advantage.
Creating a reputation for oneself is one of the most difficult aspects of beginning a new business. It’s difficult to get items to speak for themselves without testimonials. Amazon is a globally recognized brand. You may capitalize on this reputation and reap the benefits for your own company.
Visibility for your company and its products
Amazon’s global reach can assist you in expanding your brand identification. You can get millions of people to look at your products without investing money or resources in marketing tactics.
Scalable
With Amazon, your company may expand without incurring skyrocketing infrastructure expenditures.
Excellent shipping
When you start an Amazon business, you may also take advantage of Fulfillment by Amazon (FBA). That means Amazon will pick, pack, and ship your items directly from their warehouse. This saves you the headache of shipping logistics and allows you to offer Prime shipping to higher-spending customers.
Increased sales
The website is viewed by millions of users from across the world each month, with a considerable percentage of users residing in the UAE. You can also increase the credibility of your new brand by using Amazon as a platform to establish your e-commerce business. Amazon has a stellar reputation and is regarded as a safe and dependable purchasing website by millions of customers worldwide.
Low initial investment
Amazon is the best option for novice sellers on a tight budget. Amazon listing fees are cheap, and you don’t have to pay them until you start selling.
Shipping Solutions That Work
Amazon has a number of shipping and delivery choices. You have the option of storing and delivering your products yourself, storing your products and delegating the shipping mission to Amazon, or completely relying on Amazon to store, pack, and deliver your products.
Several payment alternatives
Credit cards, bank transfers, e-wallets, direct debit, and other payment methods are available. Amazon also provides fraud prevention.
Legal requirements for Amazon UAE sellers
To open an Amazon UAE seller account, make sure you have all of the necessary documentation from both Amazon and your free zone. These are some examples:
A company name
When you register an Amazon UAE account, one of the first things you must do is choose a name. Keep in mind that the UAE has rigorous corporate naming guidelines, including prohibitions on blasphemous, abusive, and filthy terminology.
Information about how to contact us
All vendors must disclose their contact information, including their legal names, to Amazon. This will not be made public, but your contact information will be used to contact you directly by consumers and Amazon.
An e-commerce permit
In order to run an e-commerce firm in the UAE, you must first obtain an e-commerce license.
A current visa
Foreigners living in the UAE must have a valid visa in order to sell on Amazon.
A business checking account
Amazon will send you the proceeds of your sales to this bank account every 14 days. You can open a corporate bank account in the UAE if you have a valid e-commerce license and visa.
A billing address is required.
As evidence of identity, Amazon demands a legitimate address. They will need to validate this before they can set up your account.
A telephone number
As evidence of identity, Amazon also requires a legitimate phone number. Once you have a national ID in the UAE, you can sign up for a phone contract.
A national identification card
You will be required to provide valid identification issued by your government.
The cost of an Amazon UAE e-commerce license
An e-commerce license to sell on Amazon UAE begins at AED 5,750. However, you must consider a number of additional issues, such as whether you will require office space, resident visas, and other facility requirements. Contact our experts at SPC Free Zone for a free and accurate quote targeted to your individual needs.
How to Create an Amazon Seller Account in the UAE
Setting up an Amazon UAE seller account is simple once your documents are in order. We’ve simplified the procedure into five simple steps:
Step 1: Navigate to www.services.amazon.ae.
Step 2: Register
Step 3: Enter your name, email address, and password, then click the Submit button.
Step 4: Enter your company’s information.
Step 5: Submit the necessary documents for verification.
After submitting your application, you must wait for Amazon UAE to approve your account. This can take anywhere from 24 hours to many weeks. You can begin selling once Amazon has approved your account.
Selling Prices
When selling on Amazon, you’ll have to pay a variety of selling fees that vary depending on the products sold and the order fulfillment. This includes referral fees, which sellers must pay for each item sold. This cost varies depending on the product type and is deducted by Amazon.
Access to the Seller Central
You will have full access to your Seller Central account once all of your documents have been registered. This account is your one-stop shop for everything related to your seller account, including inventory changes, product information addition, payment management, and much more.
How to Obtain an E-Commerce License in the UAE
If you have the necessary documentation, the process of obtaining an e-commerce license in the UAE is rather simple. Our business consultants at SPC Free Zone can walk you through each of the following steps:
Step 1: Submit paperwork for approval.
You will obtain your e-commerce license in less than two hours if you are authorized.
Step 2: An immigration card and an electronic application are issued.
You will be issued a temporary visa that is normally good for 60 days.
Step 3: Change of status and entry permission
Once you have acquired your entry permit, authorities will activate your status change.
Using Amazon Advertising to Grow Your Business
Amazon, in addition to providing a platform for exposing your products to the globe, provides tools to raise the visibility of your brand and increase sales while cutting costs.
Sponsored adverts are one of the advertising options provided by Amazon.
Sponsored Products: These sponsored adverts display on shopping results and product detail pages and are for individual product listings.
Sponsored Brands: These sponsored advertising display on shopping results pages and feature your brand logo, a personalized headline, and a selection of your products.
Sponsored Display: a self-service advertising solution that allows advertisers to access relevant audiences by displaying adverts on and off Amazon.
Stores: bespoke multipage shopping destinations for specific brands with a variety of easy-to-make content templates and tiles to easily create professional-looking websites with no website design knowledge required.
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