When you plan to start your business in the UAE, you are spoilt for choices. It could be challenging to narrow down the options and choose the most suitable one. So, let’s make it easier! Becoming an entrepreneur is much easier and faster if you choose the e-commerce sector. After the COVID-19 pandemic, online shopping has become the new normal and the sector is booming in the UAE. Also, busy bees in the country prefer online shopping considering the convenience of shopping with a few clicks. In this blog, let’s explore the benefits of starting an e-commerce business in the UAE and how to start your dream venture in the bustling e-commerce sector.
Benefits of e-commerce business
Starting an e-commerce business in the UAE promises several advantages. The government has introduced many policies to attract entrepreneurs and investors from across the globe to the region. Also, the country’s e-commerce sector is witnessing a huge leap recently. The UAE has one of the most advanced e-commerce markets in the MENA region.
Starting an online business is cost-effective when compared to opening a physical store. You can save the upfront investments required for renting a store, furnishing, and hiring a team. When starting an e-commerce business, the typical costs include domain name, web hosting, website development, and marketing. You can run your business as a sole proprietor until you can invest more.
- Increased profit margin
As the cost of setting up and operating a virtual store is less, you will save money on rent, labor, overhead, and marketing. Also, online stores don’t have time limits like traditional stores, which means you can sell round the clock. Increased revenues and lower prices help new businesses increase their profitability, a primary advantage of e-commerce.
- Targeted marketing
The best thing about online business is the possibility of reaching out to specific customers who will likely buy your products. All your marketing efforts can be targeted to a specific audience based on demographics, geographic location and hobbies or interests. So, understand your target audience well to customize your marketing strategies.
Wider customer base
As proximity is a key factor customers consider while choosing a physical store, an online store doesn’t have this limit. It can cater to customers worldwide, which means better reach and more sales. With an e-commerce store, you can sell your products to people worldwide.
How to open your e-commerce business in UAE
The process of opening your e-commerce business in the UAE is quite straightforward. You may need support from an experienced business consultant in the region regarding documentation and business licenses. The following are the critical steps involved in the process.
- Choose the office location
Though you don’t require a physical store, a registered address is mandatory for obtaining a business license in the UAE. So, choose a suitable location for your business in the mainland or the free zone.
- Obtain a trade license
Register the tradename of the company by following the guidelines of the government. Then, you must apply for an e-commerce license in the UAE.
- Create your e-commerce website
An efficient and user-friendly website is the prerequisite for e-commerce. It must be interactive, fast, easy to navigate, and manage high traffic without technical glitches.
- Open a corporate bank account
Opening a corporate bank account in the UAE will help you streamline your business’s financial transactions. Also, provides different payment gateways for the customers to choose the one they frequently use.
Start your e-commerce business in the UAE
Starting an e-commerce business in the UAE is an excellent option for those who dream of living in this country known for the extravaganza. It is an easy way to earn your residency in the UAE and run a business in a profitable sector. Having helped several people start their e-commerce business in the region, BusinessLink can guide you in the right direction. We will help you throughout the journey making it faster and simpler. We will take care of each and every step including documentation, business licensing, visa services, and corporate banking assistance thereby making your journey seamless. Contact us now to start your business setup in the UAE.