Recently, Business Link reviewed a report by the Telecommunications and Digital Government Regulatory Authority (TDRA) in which it was stated that the UAE was among the world’s leading countries in various digital life indexes because of considerable progress in its information and communication technology sector.
According to the report, the UAE ranks second globally in terms of internet usage at a rate of 99 percent, compared to the global average of 62.5 percent, which is actually an opportunity for eCommerce business startups.
The research also stated that the UAE was the first country in the area to establish a digital government in 2001 and has advocated digitization as a lifestyle that individuals and enterprises should adopt in order to reach maximum levels of efficiency. The new business setup in Dubai, UAE is also being encouraged to have an online presence in order to get the maximum visibility of their brand and yield more revenue.
UAE is among the top 20 countries in terms of using digital videos as a source of learning. Currently, UAE stands at 50 percent on the global scale. The country stands among the top ten nations in terms of digital blog share at 27.6 percent.
The Upsurge of E-commerce in the UAE
2022 is considered to be favorable for the UAE’s eCommerce market because of a potential increase. As consumers continue to gravitate toward e-shopping, the market is expected to rise by 60%. E-commerce in the MENA is quickly catching up to global powerhouses like China, with many online shops expanding their services to avoid Covid-induced interruptions. Chinese investors have also realized the potential of having a business setup in UAE whether a new company or a branch office.
Consumer spending outside of the country is also rising and is expected to reach 32 percent of total e-commerce sales in 2025, up from 26 percent last year. Personal accessories and eyewear are expected to be the most in-demand products in UAE’s eCommerce market. These markets come with a CAGR of 20% from 2020 to 2025.
“The way we see it, going digital as a business is almost irreversible. Once someone is running their business online in a more efficient and organized manner, they will not go backward,” said Ramy Assaf, CEO of Zbooni.
The Future of E-commerce
It is estimated that from 2018 to 2022, the UAE’s e-commerce market size will continue to grow rapidly. Sales are said to grow by 23% every year. The Gulf Cooperation Council (GCC) has contributed to this rise in certain ways. Firstly, by providing regulatory assistance. Then, promotional measures and boosting commercial interest.
With e-commerce increasing in market size, many SMEs can take advantage of the growth by transitioning to digital storefronts. Because of the country’s increasing adoption of digital technology, the UAE’s digital economy will grow swiftly. Additionally, shops in all industries will benefit from adding e-commerce to their purchasing alternatives.
E-commerce will grow increasingly profitable in the coming years. As the UAE’s young and tech-savvy population drives the country’s expanding e-commerce market size. Digital payments and online retail goods and services will become more popular. This will result in the UAE’s public and private sectors will profit from this growth.
If you want to be a part of this growth, continue reading to know how you can start an e-commerce business in Dubai.
How to Build an E-Commerce Startup
If you’re a competent entrepreneur who is drawn to the UAE’s exponential rise, you’ve certainly fantasized about opening your own e-commerce company. Even starting your own company may provide you with a sense of fulfillment and autonomy.
Follow the steps to learn how you can establish an e-commerce business:
- Firstly, identify prospects and pick your product – Knowing what items you want to offer direct-to-consumer is the first step in creating an e-commerce site. Next, assess your proposal to weigh the benefits and drawbacks of correctly selling the business.
- Completely study your competition and prepare a business plan – You’ll need to research your competitors thoroughly so you know what you’re up against and how you can position your firm differently from theirs. After you’ve completed your market research, it’s time to draft your business plan. A business plan is a road map that helps you connect your ideas and thoughts. It is essential when deciding what to prioritize and how to communicate with your potential clientele.
- Create a logo and a name for your online store – Create a simple yet unforgettable logo that accurately portrays your company. Before you start building your online presence, you should also understand some of the fundamentals of search engine optimization. By doing so, you can appropriately layout your site and pages for Google and other search engines. Next, create a professional-looking website. Captivate your consumers with compelling product descriptions, stunning product pictures, and a bold color scheme. Finally, your goods and target market will decide the ideal combination of sales channels.
- Select your delivery plan and create sales and marketing goals – Now that you’re almost ready to launch, it’s a good idea to define your key performance indicators ahead of time so you know what metrics to target. You’re well on your way, and you’ve probably made a few sales along the way. It’s time to take your e-commerce marketing seriously. Focus on social media marketing – that’s where the future lies.
- Launch your business – While many new business owners should consider selling their physical products in person, the remainder of digital marketing is based on doing one thing well: attracting targeted traffic. You’re ready to go! Start your own e-commerce firm and join the big leagues!
Tips for Starting an E-commerce Business
Starting an e-commerce business is thrilling. Keep the following tips in mind to get yourself on the success ladder:
- Forget about year-one profitability
- Know and connect with your target audience
- Sell an in-demand product
- Experiment with marketing and advertising
- Invest in outreach