How to start e-commerce business in dubai?

e-commerce in dubai

How to start e-commerce business in dubai?

It is estimated that by 2016, nearly 50% of the total worldwide population will be connected online, and this is expected to provide businesses with a vast potential for development.

Dubai has demonstrated consistent attempts to become an established e-commerce zone, ever since the year of 2002, where Madar Research Group based in Dubai Area has found that Dubai’s e-commerce level was found to be on the same high level with major European Union countries.

The above realization has also been enhanced by the introduction of new market fields and the vast popularity of social media. SME are also realizing the net’s potential by utilizing it for major business processes such as marketing and customer communication.

The latest advancement of e-commerce goes along with Internet’s general growth. New actors are making vast contributions in the new e-tailing format.

The popularity of Paypal in the Gulf Cooperation Council Countries (GCC) is constantly increasing. More specifically, the total worth of e-commerce based transactions has reached $11 billion per annual basis in the Middle East Zone, according to Arab Advisors Group.

The development and promotion of a successful branding presence online identifies and considers the habits of an ever changing client pool. The future of commerce calls for an integrated system that combines both traditional and e-commerce structures.

From a client’s perspective, some matters will stay unchanged, whether we are talking for offline or online trading modes. Clients for example will be always on the lookout for popular products at the best price possible, receive great customer service, and work with brands that really satisfy their needs and preferences.

More often than ever, customers are finalizing their purchases by using a combo of online and offline tools. Through the net, for example, they post and share info with others on social media, they approve the purchases of others, they write reviews, and make their own research to find out more about the products or services they are looking for. Offline, they get the chance to experience the product physically, touch it, explore, it and even compare it to other products or services.

This is why brands need to consider both of these experiences that drive a consumer finally make their purchase. If brands can articulate a brand with both of these integrated, chances of getting real positive results will definitely be more.

Licensing procedures

  • To establish an online based business, you need to obtain a license from the Department of Economic Development.
  • If you want to form a company within an established free zone in Dubai, you will have to obtain a license from the appropriate governing body of the free zone.
  • The kind of license you will get, varies according to the type of your web-based company.

Office premises

Considering the type of your company, you may also think about creating a physical office space. This is must-have for being recognized as a legal business in Dubai.

To start developing a web-based company, you’ll have to craft a website first. Here are the basic stages for a successful online setup:

  1. You’ll have to find a unique domain name and register it online
  2. The domain name chosen will be used to refer to your website’s address/url (usually features the brand of the company)
  3. To search and register your own domain name, search on Google’s databases first and then select a company in the UAE that provides domain name registration services.

In case you are a web-based shopping portal, you may take into account the following parameters:

Web payment Gateway systems

Companies that offer products and/or services online should establish a Secure Payment Gateway System that processes multiple paying options like payments with credit cards, cheques, or pre-paid channels like Paypal.

Import Duties

In case you import stock from other nations and plan to sell then on the web to UAE clients, your company has to be registered to the appropriate UAE import customs entity, which will issue a unique importer’s code to the registrar.

Companies operating in the free zone are free from any import taxes as long as they sell their products within the free zone or outside the UAE area. In case they are selling their products and services within the UAE area, taxes and duties will be imposed to the company and the meeting with a commercial agent is required.

FREEZONE CONSULTING provide company registration services and business setup from start to finish. Please contact us for more information.

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