How to Set up an E-shop in Dubai, UAE?

by Zaara 02, Jun 2021

How to Set up an E-shop in Dubai, UAE?

Dubai, renowned for its excellent service and rich cultural heritage, is now firmly rooted as the international, industry, and economic center of the Middle East. Convenient market conditions and smart investment options have driven Dubai to become one of the Gulf’s fastest rising economies. One of Dubai's fastest-growing industries is stores, or souks, called in the Middle East. Consequently, it is quite a viable idea to set up a shop in Dubai. Retail shops, beauty salons, and restaurants are the most popular in Dubai.

With around half of the country's population being a daily web user, the online economy is becoming a critical development driver for enterprises. One of the world's forefathers in digital space and online store is the United Arab Emirates. The retail sector in the UAE reportedly accounts for $10 billion in annual revenue, ranking among the digital world’s top-ranking countries.

Hootsuite and We Are Social's online survey showed a staggering number of overall internet users in the UAE who are already shopping online. The study found that 62 percent of UAE internet users are already shopping online and paying an average of $332 per purchase, rendering the UAE the most extensive online retail marketplace in the Middle East.

In the United Arab Emirates, Dubai becomes more prominent as the government for online stores while providing freelancers’ licenses to sell on social media. This pro-business mentality of the government creates a tiny culture. With each year, the online store is rising and has more reach in the coming years.

All about Online Shop in the UAE

When starting a business in Dubai, one will have to consider a wide variety of variables. Still, first and foremost, you will need to consider what products and services you want to deliver to your clients online. The buying and selling of products and services online is e-commerce. And E-commerce business is a competitive world, and an online shop without a strategic plan will often fail.

Research

Three things to know first before you step into the online shop, i.e.

  • Which industry sectors are currently experiencing growth?
  • What are industries expected to flourish in the coming years?
  • In what industries do I have an advantage?

The only thing you can concentrate on when it comes to the first two questions is analysis, analysis, and evaluation. The third issue is personal, so you will benefit from the commodity you have made and distributed. Therefore, ensuring that you have a quality product from the very beginning to highlight a market is a cornerstone of this field’s success.

Business License

The next move is to take the necessary steps to start your shop online after determining what you want to give your intended customers. Holding a trade license such that the company is lawfully run in the UAE is the essential step. Depending on where you want to operate your company (location) and the business operations, there are different trade licenses. The license can be made available to the Dubai Department of Economic Development (DED) if it operates from the mainland or operates from the free zone to the appropriate free zone authority. The process includes,

  • Choosing the license type
  • Understand the importance of registration cost and fees
  • Start preparing the documents
  • Send the application and documents to the authority
  • Pay Fees
  • Collect the license

Website

Once you are legally sorted out, designing your website is the most crucial step. You can dive in and build the website if you have an excellent technological experience, but if not, you can recruit someone to do it for you. And you would want to start thinking about your online store’s architecture until the main parts of your website are up. Sales are also influenced by factors like how the goods are distributed and how they interact via the website.

Domain Name

You might have to choose and activate a domain name after the website is set up. For your domain, this name will be used. Registration of a domain name is necessary, and you have to pay a certain amount to register it.

If you are working on the mainland of Dubai, you need to note no explicit license for e-commerce activities before starting this venture. For a specific operation, you would require a basic trading license, while for a general e-commerce license in Dubai, a general trading license.

Suppose you chose the free zone as your operational authority, then in the mainland. In that circumstance, you will have to deal with your merchandise. You need to negotiate with local vendors and warehouses to not export goods directly to buyers in the UAE’s non-free zone areas.

We at Commitbiz are Dubai based consultants who provide business setup services. If you need these services, contact us today- we’d be happy to help you.