How to start ecommerce business in Dubai?

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start ecommerce business in dubai

How to start ecommerce business in Dubai?

Ecommerce is one of the booming industries across the world. In fact, e-commerce has become one of the fastest growing global industries in recent years. In 2016, e-commerce sales touched USD 1.86 trillion worldwide with sales expected to reach USD 4.5 trillion by 2021.In the UAE, the ecommerce market is booming at the moment. Studies have found that 62% of the country’s internet users now shop online. The average consumer in the UAE spends an average of USD 332 per purchase according to KMPG. In total, the ecommerce industry in UAE is worth USD 10 billion, making it the largest e-commerce marketplace in the Middle East. So, what should you do if you want to start an online store? Here, we would talk about how to start ecommerce business in Dubai.

How to Start Ecommerce Business Dubai: The Steps Involved

STEP 1: Getting an appropriate license: To start Ecommerce Business in Dubai, you would need a license from the Department of Economic Development (DED). If you are looking to start ecommerce business in Dubai Freezone, you would need a license from a relevant free zone authority. The type of license you need will depend on the nature of your online business. If you already have a business in Dubai and you just want to start ecommerce business in Dubai as its extension, no further licenses are required.

STEP 2: Getting an Office Space: Your e-commerce company can be an aggregator or it can be online version of your physical store/ chain. Depending on the nature of the business, you need to choose appropriate physical office. You must have physical office space to be considered legal business entity.

STEP 3: Developing a website: It goes without saying that to start an ecommerce business in Dubai. You need to develop an interactive platform that enables easy interaction between producers and consumers is the primary goal of the platform. The web development process, involves the following steps:

  1. a) Registering a domain name:

Domain name is the web address you use for your website. It can be the name of your established business or something new. You would need to register a trade name or that. Hence registration of a domain name is important to start ecommerce business in Dubai.

  1. b) Online payment gateways:

Another thing that you must understand while starting an ecommerce business in Dubai, is that you need to get an online payment gateway. The number of users opting for a cashless mode of transaction like through credit cards and debit cards is on the rise. This makes it necessary to have an online payment gateway. You should opt for a Secure Payment Gateway that support credit card payment, cash on delivery and pre-paid card systems such as PayPal.

STEP 4: Understanding Import/Export Requirements:

When you start ecommerce business in Dubai, you need to have your business has to be registered with the ports and customs authority of the emirate you are starting the business. This is important, if your online business is into importing goods/ products from abroad and selling it on your website. An importer’s code would be assigned to your business, and customs duty would be levied to the imported goods. If you start ecommerce business in Dubai in a Free Zone, then you would be exempt from customs duty. However, you would be restricted to selling the products/ services within the free zone or outside the country. If you wish to sell to the UAE market, you would need to pay customs duty has to be paid and also appoint a local commercial agent.

When you are looking to start ecommerce business in UAE, one of the crucial things that you need to do is to import your products and then share the information on your website. This depends on your service/ products that you are offering and how much information you wish to actually share with the consumers.

If you are a foreign investor and you wish to start ecommerce business in Dubai, then you would need to take the help of a local consultant. You can take the help of Arab Business Consultant as they are the leading names in the business and they specialize in ecommerce company formation in Dubai. So, get the help of the experts and form your own online store with ease