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E-Commerce Business in UAE


E-commerce or business through buying and selling of products online is a sector which is growing tremendously worldwide. According to Digital in 2017: Global Overview, more than half of world’s population are regular internet user, 2/3rd of world’s population use mobile phone, more than half of mobile connections are broadband and lastly one in five of world’s population used online medium for shopping in last 30 days.

These statistics reveal that e-commerce is gaining immense popularity worldwide and UAE is no exception to this. One can observe a silent and steady shift of retail sector to online shopping across GCC and this is not just a trend anymore. Online shopping has become a preferable mode to buy products. This is because people are quite busy in their lives and for their convenience; e-com fulfills this requirement.

Growth of E-commerce in UAE

According to a recent research by Google, UAE stands amongst the top countries at 73.8%, in terms of smartphone penetration worldwide. Approximately 92% of UAE population has internet access. Robust usage and thorough demand of mobile and internet played vital role in growth of e-com sector across GCC. released a report on online shopping in UAE stating that 80% of online customers use mobile phones and it is predicted by IDC (International Data Corporation) that percentage of internet access through mobile globally will significantly grow by 25% in next 5 years.

More people use mobile phones, more online activities will occur. There is huge potential for e-com in UAE because this sector has not reached the developed phase as it is in USA or India and growing shift of people towards online purchase has opened the door of opportunities for many online businesses in UAE. According to Frost & Sullivan, e-commerce will be valued at $10 billion (Dhs36.7bn) by 2018 in UAE.

Online shopping thrives on customer trust. Previously consumers in UAE were reluctant to buy online because of lack of trust but this behavior has been changed by adopting certain market strategies like providing cash on delivery which 85% of people prefer to use rather than pay online which only 15% prefer.

Now, businesses will have to adopt even more customer friendly policies which influence their buying decision e.g. discounts, customized shopping experience, same day delivery, virtual store etc. These trends should be utilized by digital retailers to attract customers and build their trust.

E-commerce Setup in UAE

Setting up an e-commerce business in UAE is a good idea to make money. We have listed down few strategies which will help you develop business plan for your business and to run it successfully.

Select the product that you want to offer to your target market

It’s easy to start an e-commerce business but difficult is to successfully run it. You must decide what you are going to sell. You have two choices mainly: either choose the product which already exists or go for a unique product which is new to customers. More convenient option would be to go for an already selling product so that you are familiar with target market and be able to connect to it quickly.

Import and export of product

Import and export of product is very important aspect of your trade regardless of business activity you are pursuing in. You should acquire license for e-commerce business in Dubai. KWSME has ground level knowledge of the process of obtaining trade license in Dubai. Speak to our representatives at KWSME who will help you in this procedure.

Know about your competitors

Research your competitors in the industry so that you can prepare a sound business and marketing plan for your business. A sound business plan will help you move forward effectively.

Build up e-commerce website

There are various agencies which help in developing website design. Contact us at KWSME to get to know more about them.

Market your product

You should have clarity about dynamics of your target audience and what influences them most. Spend considerable time in devising marketing strategies that captures your target audience so that your web traffic increases and is converted into sales for you.

Select right software to stay productive

Technology makes huge difference in this field. You should invest on project management, customer service management and software that integrate into what you are doing once you start your business.

Business setup in e-commerce sector in Dubai is a growing field as investors are realizing its viability and beginning to explore its true potential. If you are an entrepreneur looking to invest your money in this venture, speak to our KWSME team. We have years of experience in e-commerce business setup and have helped multiple entrepreneurs setup their online business in Dubai.

Get in touch with KWSME team to get started.

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