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How To Sell On Amazon UAE: Your Ultimate Guide

Dec 30, 2021 | Entrepreneurship

Interested in an Amazon side hustle? What about turning it into a full-time career?

Did you know that the monthly sales of most Amazon sellers range from USD 1,000 (AED 3,673) to USD 25,000 (AED 91,825)?

According to Jungle Scout, 64% of Amazon sellers achieved profitability in their first year of selling. What’s more, 20% of these vendors accomplished this within the first three months!

If you’ve just established an e-commerce startup, in the United Arab Emirates, or looking to expand your online shop, this guide will help you become an authorised Amazon UAE seller.

Here’s everything you need to know about selling on Amazon, establishing an Amazon seller account and all the various benefits. Start selling and take advantage of what Amazon has to offer.

Business owner on floor learning how to sell on Amazon UAE

The Time Is Now For Entrepreneurs in the UAE

If you’re looking for a lifestyle that affords great work-life balance with plenty of perks, taking the leap to selling on Amazon could be for you. With business booming in the Emirates, a noticeable shift into the modern age of e-commerce, online trade and entrepreneurialism is upon us.

The e-commerce landscape is an ever-growing field in the region. The main goods or services that are increasing in demand include:

  • Electronics, computers & technology
  • Gaming & Sports
  • Entertainment
  • Toys & Music

An inspired idea takes shape and the readiness kicks in to bring it to the world. Now the rubber really meets the road. Starting out as an entrepreneur, especially in the online world has is challenges. It’s important to appreciate the time it takes to gain the respect and reputation that long-standing companies have worked hard to obtain. 

Once you get some business basics sorted, streamlining your procedures can make a world of difference to your success trajectory. It can also improve customer service and reduce the need for paperwork. Learn how AI can help your business, whether you’re a solopreneur or part of a multi-national corporation.

Also, getting savvy with social media is a must if you want to reach prospective customers. Companies that link to their Facebook and Instagram accounts can increase their sales potential exponentially.

Importantly, taking care of your mind, body and business so it’s set for success in the long term, is a must.

The Benefits of Selling on Amazon

Amazon UAE is one of the most visited websites in the country. It offers a valuable revenue stream, with great expansion opportunities for online sellers and entrepreneurs.

Recently, Amazon has acquired Souq.com and rebranded accordingly to Amazon UAE. This merger has boosted business opportunities in the e-commerce sector, which make the industry even more attractive for entrepreneurs.

In fact, statistics say that it ranked first among the top online stores in the UAE in 2020. With that, some of the benefits of selling on Amazon include:

  • Gaining access to millions of online buyers
  • Obtaining trust from potential buyers
  • Increased visibility of your brand and/or products
  • You can take advantage of multiple promotions
  • Amazon supports various payment options (e.g: credit cards, bank transfers, e-wallets, invoices, direct debit)
  • No need to have your own infrastructure
  • The Amazon platform has teaching centres

FACT
In the United Arab Emirates, Amazon is one of the largest and most popular online shopping platforms. Statistics show that 43.6% of shoppers in the Middle East have bought something from Amazon recently, 64% spend more than AED100 each on Amazon every time they shop online and 26% shop every week.

Friends sitting at home purchasing online products on tablets, laptop and mobile phones and checking certain features on their information controls for essential cookies

What do I need to get selling on Amazon UAE?

Now, here’s all the documents and information you need to get established on Amazon:

1.    Business name and contact information

First and foremost, you’ll need your businesses name and contact information. The UAE has company naming criteria, so to ensure that you follow them, we recommend that you work with a company setup agent like Virtuzone. They can help you choose an appropriate name and register it as well.

2.    An e-commerce licence

Next, you need to apply for either a free zone or a mainland e-commerce licence. A free zone e-commerce licence can be more advantageous, as it provides a customs tax exemption, has no currency restrictions and is generally more affordable. Getting assistance from a business setup consultant streamlines the entire e-commerce licence process for you. All you need to do is register the company name, decide on a free zone or a mainland licence, complete an application form and provide your passport ID.

3.    A visa (if you’re a foreigner)

Then, if you are a foreigner living in Abu Dhabi, Dubai and the region, you also need a valid residence visa for an online Amazon account. For this, you must visit an immigration centre for biometrics testing. You’ll need to undergo a blood test, fitness test and a chest x-ray for the residence visa application.

4.    A valid corporate bank account

With your licence and visa, you can already apply to open a corporate bank account. You need this to receive your sales for your goods or services. The UAE is home to a wide variety of banking institutions that require various documents, especially for foreign business owners. For this reason, it pays to do some solid research to understand which corporate bank suits your business needs.

5.    A valid billing address

You will need to provide documents that serve as your proof of address. Amazon will need this to validate your identity and determine where you are located, among other details.

6.    A phone number

Along with a billing address, providing your best contact phone number is an important detail to include on the application. You’ll need this so that Amazon UAE can reach you during the registration process.

7.    Your national ID

Finally, Amazon will require you to upload your national ID or a valid government ID for identity verification as well.

Woman unpacking parcel from an online purchase from Amazon UAE

How to open an Amazon seller account

Once you have all your appropriate documents and info ready, you can set up your Amazon seller account. Here’s a step-by-step guide:

1.    Go to https://services.amazon.ae.
2.    Click on the Sign up button
3.    Fill in your name, email and password, then submit
4.    Fill out the required business information
5.    Upload the required documents for identity verification

And that’s it! You just have to wait until your account has been reviewed, then you can start selling. The review period may take between 24 hours and a few weeks.

What does it cost to set up an Amazon seller account?

Conveniently, signing up for a basic Amazon seller account is free of charge.

The only cost associated with Amazon accounts is with Amazon Prime. Amazon Prime is a paid subscription programme that can offer more perks, certain features and additional services, such as popular movies. Amazon Prime is an app that can be downloaded from the App Store or Google Play Store.

Friends shopping from Amazon UAE on a laptop computer at home, while looking at amazon prime and amazing deals

How To Optimise The Customer Online Experience

Being an online entrepreneur is all about connecting with your costumers to make their shopping experience enjoyable and efficient. Providing a safer experience for consumers is also very important. Learning about online consumer behaviour is beneficial to your bottom line when selling on Amazon.

In the world of e-commerce, one useful tool to help identify the needs of your customers, is understanding the importance of essential and optional cookies. So what exactly are essential and optional cookies? Let’s find out below.

What Are Essential and Optional Cookies?

The development of ‘cookies’ or ‘HTTP cookies’ is an important part of modern internet use. In fact, they form an integral aspect of web browsing, to improve content delivery to customers. With cookies, website developers are able to give consumers a more optimised, personalised and convenient browsing experience.

So what exactly are cookies? Cookies are text files which are created by the websites that users visit. Cookies help make a safer experience for customers and boost browsing efficiency. Now, there’s two types of cookies – first-party cookies and third-party cookies. 

First-party cookies are created directly by the site you’re visiting. They are also known as just essential cookies or strictly necessary cookies. Essential cookies don’t require consent from a user and are required for the basic function of any website. For example, cookies assists in storing a customer’s login information or shopping cart. The use of essential cookies helps improve content and optimise browser activity and customer service experience. Having just essential cookies is crucial to site functionality.

Then, there’s third-party cookies. These are created by external sites that are connected with the primary site. They are often known as optional cookies. Optional cookies are related to ads, images or other ‘third-party’ entities that are visible on the website you visit. As an e-commerce entrepreneur, it’s important to understand the rights your customer’s have in terms of protecting their privacy. 

Protect The Privacy of Your Customers

Luckily, people can choose to opt-in to a particular site that requests access to personal information. Users can always block certain third-parties from accessing private data. Similarly, other ways consumers can protect themselves is to opt-out from optional or third-party cookies being stored in their browser.

When using different sites, you can change your internet settings to allow or block specific cookies to pop-up. You can also allow cookies from the main site, but block third-party cookies in ads or images on that same website. Also, you can delete cookies after you’ve finished browsing. 

A well-known example of third-party cookies is related to the use of Facebook. Tools are sometimes used from other companies for advertising and measurement services, from Facebook products. This helps analytics or similar technologies to provide certain features to improve their services. Accessing information controls is one of the other ways to manage privacy, ensuring just essential cookies are stored on the browser.

In summary, essential and optional cookies are primarily used for advertising and measurement services, with an aim to improve content and provide a safer experience for online shoppers.

Do you want to apply for an e-commerce licence?

Save time and let us simplify the e-commerce licensing process. Want to give yourself more options for income streams and a heap of flexibility? Contact our Company Formation Specialists for help with your application and required documentation. Company Formation Specialists are experts at business setup in Dubai, and we’re ready to help.

Fill out the form below to book a free consultation with our team, so we can help you get started.

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