It’s a well-known fact that social media is no longer a mere place for entertainment and social connection. Social media platforms, especially Instagram, have become thriving marketplaces for products and services of all kinds.
If you are fostering an idea to sell products or services over Instagram in the UAE, we give you many reasons why Instagram is a great place to start your online business:
Visual Appeal: Instagram is a highly visual platform, and people are drawn to visually appealing content. Instagram allows you to create a visually engaging brand presence.
Large and Diverse User Base: Instagram has over a billion monthly active users. This diverse user base provides a broad audience for businesses to reach, no matter what products or services they offer.
Engagement: Instagram is known for its high user engagement which can help increase the visibility of your products and build a community around your brand.
Instagram Shopping: Instagram introduced features like “Instagram Shopping,” which allows businesses to tag products in their posts and stories. Users can click on these tags to view product details and make purchases without leaving the app.
Influencer Marketing: Many businesses leverage influencer marketing on Instagram. Collaborating with influencers who have large and engaged followers can help promote your products effectively.
Targeted Advertising: Instagram provides advanced advertising options, allowing you to target specific demographics, interests, and behaviors. This helps you reach potential customers who are more likely to be interested in your offerings.
Analytics and Insights: Instagram provides insights and analytics tools that allow businesses to track the performance of their posts and campaigns. This data can help you make informed decisions and refine your marketing strategy.
E-commerce Integration: Instagram has been working on integrating e-commerce features directly into the platform, simplifying the buying process for users.
Why the UAE market is the right place to sell on Instagram?
The UAE can be a favourable market to sell on Instagram with its business-friendly environment. Setting up and running a business is relatively straightforward, which can attract entrepreneurs and businesses to the market.
The country has a high rate of internet and smartphone penetration. This means that a significant portion of the population is active on social media platforms like Instagram, making it a large potential customer base.
The UAE is known for its high average income levels and its luxury market. This affluence can lead to higher purchasing power and a willingness to spend on various products and services.
Moreover, the UAE is home to a diverse population with residents from all around the world. This diversity can create a wide range of interests and preferences, which can be targeted through Instagram’s advertising features.
E-commerce has been growing in the UAE, and Instagram’s shopping features align well with this trend. Instagram Shopping allows businesses to sell products directly through the platform, which can be convenient for both sellers and consumers.
Do I need a license to sell on Instagram in the UAE?
As per the laws in the UAE, in order to conduct any business activity in the country, you need first to acquire the relevant business license. This applies to any business, including e-commerce on Instagram. You have the option to get your license from the Department of Economic Development (DED) in mainland, or from UAE free zones, which is considered a more cost-effective and easier choice.
How much does the business license cost?
The cost of an e-commerce license to sell on Instagram starts at AED 6,875. However, you’ll need to take into account a variety of different factors too, such as whether you’ll need office space, resident visas, and other facility requirements. For an accurate quote tailored to your specific business needs, reach out to our team at SPC Free Zone or use our free cost calculator.
How to sell on Instagram in the UAE
Selling on Instagram in the UAE involves several steps and considerations to ensure a successful e-commerce venture. Here’s a guide to help you get started:
Market Research:
Understand the UAE market, including your target audience, competitors, and consumer behavior.
Identify local trends, preferences, and cultural considerations that may impact your business.
Business Setup and Licensing:
Determine the type of trade license required for your business. This may depend on the nature of your products or services. Consider setting up in a free zone that aligns with e-commerce and technology businesses to benefit from advantages like full foreign ownership and tax benefits.
Legal Compliance:
Ensure that your business complies with UAE laws and regulations. This includes VAT and compliance with data protection regulations. Be aware of customs and import/export regulations if you are dealing with physical products.
Instagram Business Account:
Create a dedicated business account on Instagram. Ensure your profile is complete and professional, with a clear profile picture, bio, and contact information.
High-Quality Content:
Create visually appealing and high-quality images and videos that showcase your products or services. Use captions effectively to provide product details, pricing, and any promotional information. Be consistent in your posting schedule to keep your audience engaged.
Instagram Shopping:
Utilize Instagram Shopping to tag products in your posts and stories.
Hashtags:
Use relevant and trending hashtags to increase the discoverability of your posts. Research and use hashtags that resonate with the UAE audience.
Influencer Marketing:
Consider collaborating with local influencers who have a strong following in the UAE. Influencers can help promote your products and expand your reach.
Paid Advertising:
Use Instagram’s advertising features to target specific demographics, interests, and behaviors within the UAE market. This can help you reach a more extensive and relevant audience.
Engagement:
Actively engage with your followers by responding to comments and messages promptly.
Utilize user-generated content by running contests or giveaways, which can create buzz around your brand.
Customer Service:
Provide excellent customer service, including addressing inquiries and resolving issues promptly.
Payment Processing:
Ensure that you have a reliable payment processing system in place to facilitate transactions with UAE customers.
Shipping and Logistics:
Set up efficient shipping and fulfilment processes to deliver products to customers in a timely and reliable manner.
Build Trust:
Build trust with your audience by being transparent and offering secure payment options.
How SPC Free Zone can help you?
Located in the heart of Sharjah with immigration services onsite, SPC Free Zone offers convenient, competitive, and flexible business setup in the UAE. Choose from over 1,500 business activities and get your license issued in just 45 minutes. You’ll also benefit from a whole string of benefits, including up to 20 visas under one trade license, 100% foreign ownership, and a dual license option that offers both mainland and free zone on the same license.
To expand your Instagram e-commerce business in the UAE, get in touch with our market-leading experts to learn more.
