WILLING TO START ECOMMERCE BUSINESS IN UAE?

Online business in Dubai counts up to about a hundred well-known shops, which serve its 3,6 million population. The population is mostly mid-aged working people, equipped with mobile phones, laptops and a decent salary to spend. 

People opt for internet shopping for its convenience. Online stores are available 24/7, saving you traveling time, making it easy to find the best deal from the comfort of your home. 

No wonder the demand for E-commerce licenses in Dubai is growing, and there are a lot of options for setting up an E-commerce business in the market.

E-commerce or e business simply means making money online: selling goods or services via the Internet. 

E-commerce business includes literally anything you can imagine starting from online grocery stores ending with private jet booking. 

Whether you are a freelancer or a multinational corporation, online presence is a must. Nowadays, simply any business has to be an e business. 

The importance of e-commerce in UAE has never been greater than today. However, the market is still far from being saturated, with just a few big names on the list: 

• www.amazon.ae 
• www.noon.com
• www.namshi.com
• www.carrefouruae.com
• www.kibsons.com
• www.dubizzle.com
• www.shein.com
• www.ubuy.ae
• www.mumzworld.com

Leading online shopping platforms in the United Arab Emirates in 2020 by usage

If you want to sell your products or services online in UAE, you have 3 ways to do it:

1. Sell through a marketplace.
   Don’t spend much on advertising and get guaranteed views of your products. Pay commission to the marketplace and supply goods on time. 
2. Build own website and sell through it.
   No commissions to marketplaces, but higher expenses for advertising. Logistics is on you too. 
3. Sell on social media.
   Reach out to your targeted audience and locations.

The most effective way of online selling in the UAE is a combination of the above. Majority of online trading businesses in the UAE use all possible channels of internet presence. 

The UAE has a few options of licensing online business. They depend on the type of E-commerce business you are planning to do. 

If your company will be acting as an intermediary between the buyer and the seller, your business activity in the UAE will be called Portal or E-marketplace.

Most famous example of e-marketplace is Amazon.com the website serves as a platform for the merchants who advertise their goods, and the buyers.

If your activity is similar to that, Portal is what you need. Most of the free zones have such activity, so it won’t be a problem to find it.

E-commerce setup is a choice of companies who want to sell their own goods through their own website.

It can be a website selling only 1-2 types of goods or big online retailers such as Mumzworld.com for example.

Even if your license does not relate to e-commerce as such, it does not mean you cannot sell your products or services online.

You can open a company with any business activity and conduct it online. As per the law, the mode of sales does not make any difference.

You can provide educational trainings, marketing consultations, sell food or clothes online or do any other type of business though the Internet.

It is the cheapest way to establish your e-commerce company in Dubai. The licence costs 1,070 AED and is issued by the Dubai Department of Economic Development. 

With freelance being now legalized in the UAE, any freelancer is able to apply for a freelance license. Having the license, you can advertise and provide your services online in UAE and globally. 

It’s a perfect solution for designers, IT professionals, tutors, personal assistants and other typical freelancers. 

Most popular way of online business in Dubai is selling goods through marketplaces. Here is a list of online shopping sites in the UAE where you can start your e business:

• www.noon.com
• www.amazon.com
• www.mumzworld.com
• www.firstcry.ae
• www.ubuy.ae
• www.dubaistore.com
• www.theluxurycloset.com
• uae.sharafdg.com
• www.cobone.com

First thing you need to have if you want to launch your own e-business is to set up an e-commerce website in Dubai. 

The easiest way to do it is to use ecommerce platforms such as: 

• www.shopify.com
• www.code-brew.com
• www.ecwid.com

Using them will save your time and efforts and will help to launch your ecommerce website faster. 

Needless to say, your website should have a payment gateway to enable your customers to pay by card. There are a few online payment providers in UAE that are friendly to new businesses:

• www.stripe.com
• www.paytabs.com
• www.telr.com
• www.hyperpay.com
• www.foloosi.com

Payments can also be received through PayPal UAE or cash on delivery method, which is always good for a start. 

The most popular and easy to set up service is Stripe UAE. 

Don’t forget that all UAE payment gateway providers charge a commission from each purchase. It usually varies from 2% up to 3.1% depending on the type of goods and sales volumes. Some of them have subscription fees too.

Be ready with the following set of documents for your online payment gateway setup:

1. Company incorporation documents: license and MoA
2. Personal documents: passport, residency visa and Emirates ID
3. Address proof: a recent utility bill 
4. UAE corporate bank account

An important part that makes online business in Dubai working is delivery service. Majority of e shops hire a third party for pickup and delivery service in UAE. 

Here are some flexible and affordable delivery services in UAE:

• www.zajel.com
• www.aramex.com

Delivery service companies in the UAE mostly offer not only local, but also regional and international packages. You also get dedicated managers and user-friendly apps to track and manage your shipments. 

E-commerce license in Dubai is one of the most sought after. But even if your license does not relate to e-commerce as such, it does not mean you cannot sell online in the UAE. 

E-commerce company in the UAE is a company that sells its products or services online. In the current market, literally any company can be considered as e-commerce. Everyone has some kind of online presence and the trend is growing dramatically.

You can open a company in Dubai with any business activity and conduct it online. As per the law, the mode of sales does not make any difference.

Then why do people go for e-commerce license in Dubai? Usually because it’s a requirement from their partners or vendors, or even UAE payment gateway providers.

For example, if you are planning to sell your goods through a well-known marketplace, you might need the e-commerce license as a specific requirement from them.

Setting up an e-commerce company in Dubai won’t be a problem. Almost all UAE free zones provide a business activity of e-commerce, e-marketplace or portal. 

E-commerce license in UAE cost depends of a few things: 

• Registering authority
• Eligibility of resident visas 
• Facilities (flexi-desk, office, warehouse)

Here are the free zones that have an e-commerce license activity:

• UAQ free trade zone
• RAKEZ
• IFZA
• Ajman free zone
• DMCC
• DTEC
• Ajman Media City free zone
• Fujairah Creative City
• SHAMS
• Commercity

The cheapest ecommerce licenses are offered by smaller Emirates. Umm Al Quwain with its UAQ Free Trade Zone would be a great choice. Its e-commerce license can be used for online trading in Dubai too. 

Large E-commerce companies in UAE are located in Dubai. Online business license in Dubai can be done in Dubai free zones or the Department of Economic Development (DED). 

DED has launched an e-trader license which beats others with the price - 1,070 AED only. It is the cheapest in the market, but has some terms and conditions to be met. Read about e-trader license.

As for the free zones, E-commerce license in Dubai price starts from about 15,000 AED. That price is valid in small free zones and does not include any residency visas or facilities. 

If you are planning to conduct your E-commerce business in the Emirate of Abu Dhabi, it would be reasonable to set up a company in Abu Dhabi. It will help you to avoid any possible difficulties with local authorities and vendors. Many of them work only with Abu Dhabi entities. 

E-commerce license Abu Dhabi can be opened in the following authorities:

• Department of Economic Development of Abu Dhabi (ADDED)
• Free Zone - KIZAD

ADDED restricts E-commerce in Abu Dhabi to UAE nationals or partnership with UAE nationals. If you want to be 100% owner of your e-business, opt for a free zone.