Interested in starting and scaling an Amazon business? In this article, we’ll take a deep dive into selling on Amazon in the UAE to discover how it works, what you will need to start up and how you can build a business from scratch. We will cover the following topics:
- Benefits of selling on Amazon UAE
- Legal requirements for selling on Amazon UAE
- Steps to get an e-commerce licence in the UAE
- Cost of an e-commerce licence to sell on Amazon UAE
- How to open an Amazon UAE seller account
- Is it legal to sell on Amazon in the UAE?
- Can you sell on Amazon without a licence?
- Why choose SPC Free Zone?
Benefits of selling on Amazon UAE
The benefits of selling on Amazon UAE are numerous. As one of the world’s leading global retailers, the site boasts unrivalled traffic. And while competition is increasing on Amazon, demand for online shopping is rocketing. In fact, around 65% of UAE residents cite Amazon as their preferred retail outlet. Other benefits and advantages include:
- Easy entry and low upfront investment
Amazon offers an easy access point for aspiring entrepreneurs who don’t have much capital from the outset. Listing fees are comparatively low and you won’t need to start paying until something sells. Plus, Amazon also has an active market for second-hand and refurbished items.
- Immediate access to millions of customers
When it comes to online shopping, Amazon is most people’s first port of call. That means millions of potential customers – and sales.
- Leverage Amazon’s reputation
One of the hardest things about starting a new business is establishing a reputation for yourself. Without testimonials, it’s hard to get the products to speak for themselves. Amazon is a highly trusted global brand. You can tap into this reputation and reap the rewards for your own business.
- Visibility for your brand and products
Amazon’s global reach can help you ramp up your brand identity. You can get millions of eyes on your products, without having to pour capital and resources into marketing strategies.
With Amazon, your business can grow without soaring infrastructure costs.
- First-rate shipping
When you set up an Amazon business, you can benefit from Fulfilment By Amazon (FBA) too. That means Amazon picks, packs and ships your products directly from their warehouse. That saves you the hassle of shipping logistics and it also means you can offer Prime shipping to higher spenders.
- Multiple pay options
Payment options include credit cards, bank transfers, e-wallets, direct debit, and more. Plus, Amazon offers fraud protection.
Legal requirements for selling on Amazon UAE
To open an Amazon UAE seller account, you’ll need to ensure you’ve completed the required documents required by both Amazon and your free zone. These include:
- A business name
One of the first things you will need to do when opening an Amazon UAE account is to decide on a name. Remember that the UAE has strict company naming criteria, with restrictions on blasphemous, offensive and obscene language.
- Contact information
Amazon requires all sellers to provide their contact details, including their legal names. This won’t be made public, though your contact information will be used by customers and Amazon to reach you directly.
- An e-commerce licence
To operate an e-commerce business in the UAE, you are required to obtain an e-commerce licence.
- A valid visa
Foreigners living in the UAE need a valid visa to sell on Amazon.
- A corporate bank account
Amazon will use this bank account to send you the proceeds of your sales, usually every 14 days. Once you have a valid e-commerce licence and visa, you can open a corporate bank account in the UAE.
- A billing address
Amazon requires a valid address as proof of identity. They will need to verify this to set up your account.
- A phone number
Amazon also requires a valid phone number as proof of identity. You can sign up for a phone contract once you have a national ID in the UAE.
- A national ID
You will need to provide legal proof of identity issued by your government.
Steps to get an e-commerce licence in the UAE
The steps to getting an e-commerce licence in the UAE are relatively simple, providing you have the right documents in order. At SPC Free Zone, our business advisors can guide you through each of the steps below:
Step 1: Submit documents and wait for approval
Once approved, you’ll receive your e-commerce licence in less than two hours
Step 2: Immigration card and e-channel application are issued
You’ll receive a temporary visa, which is usually valid for 60 days
Step 3: Entry permit and status change
Authorities will activate your status change once you’ve received your entry permit.
Cost of an e-commerce licence to sell on Amazon UAE
The cost of an e-commerce licence to sell on Amazon UAE starts at AED 5,750. 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 a free and accurate quote tailored to your specific circumstances, reach out to our team at SPC Free Zone.
How to open an Amazon UAE seller account
Once you’ve got your documents in order, setting up an Amazon UAE seller account is simple. We’ve broken the process down into five simple steps:
Step 1: Visit www.services.amazon.ae
Step 2: Sign up
Step 3: Enter your name, email and password, then submit
Step 4: Add your business information
Step 5: Upload the required documents for verification
Once you’ve submitted your application, you’ll need to wait for Amazon UAE to approve your account. This can take between 24 hours and several weeks. Once Amazon approves your account, you can start selling.
Is it legal to sell on Amazon in the UAE?
Yes, in most cases it is legal to sell on Amazon in the UAE. However, in order to trade online in the region, you will need to obtain an e-commerce licence. You can apply for both mainland and free zone e-commerce licences, though free zone licences are often better suited due to tax incentives and fewer currency restrictions.
Can you sell on Amazon without a licence?
No, you cannot sell on Amazon in the UAE without a valid e-commerce licence. Failing to obtain one could result in administrative and financial penalties, as laid out in Article 335 of the Commercial Companies Law (CCL).
Why choose SPC Free Zone?
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 licence issued in just two hours. You’ll also benefit from a whole string of benefits, including up to 20 visas under one trade licence, 100% foreign ownership with zero-paid up capital, and a dual licence option that offers both mainland and free zone on the same licence.
To expand your Amazon e-commerce business in the UAE, get in touch with our market-leading experts to learn more.
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