Are you interested in a lucrative Amazon side hustle or even transforming it into a full-time career? Amazon UAE offers a robust platform for individuals eager to tap into the burgeoning e-commerce market. Whether you’re launching a new e-commerce startup in the United Arab Emirates or aiming to scale your existing online store, this guide will help you become a certified Amazon UAE seller.
Here’s everything you need to know about selling on Amazon, establishing an Amazon seller account and all the various benefits. We will also tell you everything you need to know about obtaining your e-commerce licence so you can start to sell on Amazon UAE under your Seller Central account. Start selling and take advantage of what Amazon has to offer!
Income for Amazon sellers in the UAE ranges widely, with many seeing significant profitability within their first year, according to insights from Jungle Scout. A notable 64% of sellers reportedly achieved profitability in their first year, with 20% reaching this milestone within just three months.
What Do I Need to Get Selling on Amazon UAE?
Embarking on your Amazon UAE seller journey requires navigating several essential steps and gathering specific documents. Here’s a detailed guide to streamline your journey:
1. Business Name and Contact Information
Selecting your business name is crucial and must adhere to the UAE’s specific naming conventions. These guidelines prohibit using offensive language, references to religious or political groups, and existing corporate trademarks. Ensure your chosen name reflects your business operations without causing confusion or implying association with government entities.
After finalising a compliant and meaningful name, register it and ensure you have detailed contact information ready. This includes your official business email, phone number, and physical address in the UAE, setting a professional foundation for your Amazon seller account.
2. Get Your e-Commerce Licence
You can choose between a Free Zone or a mainland e-commerce licence. Free Zone e-commerce licences are often more affordable and offer benefits such as customs tax exemption and no currency restrictions. A business setup consultant can facilitate the licence application process, which includes company name registration, licence type selection, form completion, and passport ID submission.
3. A Visa (if you’re a foreigner)
For foreign entrepreneurs, obtaining a valid residence visa is essential. The two visas we recommend for those selling on Amazon in the UAE are the Golden Visa and the Green Visa. The Golden Visa presents a long-term residency option for up to 10 years for investors and entrepreneurs, facilitating a broader scope of business activities without a national sponsor. The Green Visa caters to freelancers, self-employed individuals, and skilled employees, allowing for self-sponsorship over five years. Both visas necessitate a health screening and biometric registration as part of the application process.
You can apply for both visas via The Official Portal of the UAE Government.
4. A Valid Corporate Bank Account
Apply for a corporate bank account with your licence and visa to manage your sales revenue. The UAE is home to various international banking institutions that require multiple 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. At Virtuzone, we can help you open your bank account.
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 Amazon UAE can reach you during registration.
7. Your National ID
Finally, Amazon will require you to upload your national ID or a valid government ID for identity verification.
Do You Want to Apply for an E-commerce Licence?
Save time, and let us simplify the e-commerce licensing process. Do you want to give yourself more options for income streams and flexibility? Contact our Business Setup Consultants for help with your application and required documentation. We 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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How to Open an Amazon UAE Seller Account
You can set up your Amazon UAE seller account once you have all your appropriate documents and info ready.
Here’s a step-by-step guide:
1. Go to the Amazon Website.
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.
After this, you will have to wait until your account has been reviewed before you can start selling. The review period may take between 24 hours and a few weeks.
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What Does it Cost to Set up an Amazon UAE Seller Account?
Conveniently, signing up for a basic Amazon seller account is free of charge.
The only cost associated with Amazon accounts is signing up for Amazon Prime, a paid subscription program that offers 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.
What Fees Are Involved?
Amazon charges a referral fee for each item sold. Each product you sell falls into a category (e.g., apparel, toys, consumer electronics, etc.). Most referral fees are between 4.5% and 15%. Click here to see the complete list of category referral fees on Amazon’s page.
Fulfilment or Shipping Fees
Fulfilment fees depend on whether you plan to ship products personally or use Fulfilment by Amazon (FBA) to handle your logistics and shipping for you.
There are 3 options you can choose from:
1. Fulfilment by Amazon (FBA)
If you choose Fulfilment by Amazon, Amazon will store, pack, and deliver your products to the customers. The Fulfilment by Amazon (FBA) fee to ship each item is a flat fee per unit, based on the size and weight of the item.
For example, shipping an envelope weighing under 1kg will cost 7.5 AED. Moreover, a standard parcel must be 45 centimetres on its longest side, 34 centimetres on its median side, and 26 centimetres on its shortest side at a maximum. The price for the first 250 grams to ship a standard parcel is 9.2 AED and up to 5kg will be 14AED. There are also storage fees charged for all units stored in an Amazon fulfilment centre based on the calendar month and your daily average volume. The cost per cubic foot per month is 2 AED. There are also long-term storage fees if an item is at an Amazon fulfilment centre for more than 365 days.
2. Easy Ship (ES)
If you choose Easy Ship, you will store and pack your products, and Amazon will deliver them to Totomers. In order to ship the products, you will schedule a pick-up time, and an Amazon agent will deliver your product to the customer for a fee.
As long as the product classifies as a standard size (45 centimetres on its longest side, 34 centimetres on its median side, 26 centimetres on its shortest side), the price for the first 250grams is 14 AED, going up to 17.5 AED for weights between 2 and 3kg. Each kilo over 3kg is charged at 1 AED. However, if the package weighs over 12kg, it will be considered oversized. The fees for oversized items start at 18.5 AED, which includes all items which weigh more than 12kg or do not fit the size dimensions above.
3. Self-Ship
If you choose Self-Ship, you will store, pack, and deliver your products to your customers. You will not have to pay any fees to Amazon.
Which Option Should I Choose?
Choosing the right shipping option depends on your product type, available space, and time constraints. Fulfillment by Amazon (FBA) is highly recommended, especially for those with busy schedules. FBA offers several advantages, including the prestigious Prime Badge for your products, making them more appealing to Amazon’s loyal Prime customers. Prime products often see higher sales due to customer preferences for faster shipping and increased trust in Prime-labeled items.
Your products are eligible for Amazon Prime FREE One-Day Shipping, FREE Shipping, and more. You also won’t need to manage refunds, returns or customer service!
To see the full breakdown of this on Amazon’s website, click here.
How Do You Find Products to Sell on Amazon?
As an Amazon Seller, there are many great tools like Jungle Scout or Helium 10 for product research. The Amazon marketplace is home to over 350 million unique products, so there is opportunity everywhere! The products that usually make it onto the “best sellers page” on Amazon are low cost, have a high positive review volume, and can often be recurring purchases.
Purchases that have consistent sales include:
- Baby Essentials
- Home Office
- Home Decor
- Beauty and skincare
- Outdoor Gear (Varies by season)
- Garden and Lawn
- Wellness & Exercise
There is also a high demand for the following products:
- Entertainment items
- Toys and music
- Gaming and sports gear
- Electronics, computer and technology products
How Much Do I Need to Start Selling?
31% of Amazon sellers spent under $1,000 to start selling on Amazon, and 67% spent less than $5,000.
Data From: Jungle Scout
Types of Sellers on Amazon UAE
There are 4 main types of Amazon Sellers:
- Abritage Sellers: These sellers buy discounted products from retailers to resell for a profit
- Private Label Sellers: This is when sellers modify an existing product and create their own label/brand
- Wholesale Sellers: These sellers buy products in bulk directly from a distributor
- Dropship Sellers: This is when a seller buys a product directly from a manufacturer who then fulfils and ships the order directly to the customer.
How Long Will It Take to Make Money?
Most (64%) Amazon Sellers said they were profitable within the first year of selling.
Data From: Jungle Scout
How to Optimise the Customer Online Experience
Being an online entrepreneur is all about connecting with your customers to make their shopping experience enjoyable and efficient. Providing a safer experience for consumers is also very important. Learning about online consumer behaviour benefits 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.
Utilizing Cookies
Enhancing the user experience is crucial when selling on Amazon UAE. Utilizing cookies effectively can personalize and streamline the shopping journey, making it more engaging for customers. Sellers can leverage these tools to understand consumer preferences, ensuring that products are relevant and the browsing experience is optimized. However, balancing this with strict privacy measures allows shoppers to control their data, fostering trust. This approach not only improves customer satisfaction but also boosts the likelihood of repeat business and positive reviews on the platform.
The Benefits of Selling on Amazon
Amazon UAE is one of the country’s most visited websites. It offers a valuable revenue stream and great expansion opportunities for online sellers and entrepreneurs.
Recently, Amazon acquired Souq.com and rebranded it as Amazon UAE. This merger has boosted business opportunities in the e-commerce sector, which makes 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.
Tips
- 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.
- Get savvy with social media to reach prospective customers. Companies that link to their Facebook and Instagram accounts can increase their sales potential exponentially.
FAQs
Can you sell on Amazon UAE from Pakistan?
Yes, you can sell on Amazon UAE from Pakistan. Sellers from outside the UAE can list their products on Amazon.ae by setting up an international seller account. This involves understanding and complying with local regulations and tax laws, as well as managing logistics for shipping and customer service across borders. It’s important to research and prepare for these aspects to ensure a successful international selling experience on Amazon UAE.
Can I sell on Amazon UAE without a business licence?
Selling on Amazon UAE requires a trade licence, per UAE business regulations. This legal requirement helps ensure that businesses operate within the UAE’s legal framework, maintaining the integrity of the marketplace for both sellers and customers. While individual circumstances might vary, and there could be exceptions based on specific product categories or seller locations, obtaining a trade licence is generally a necessary step for setting up a commercial presence on Amazon.ae.
