How to Start an E-Commerce Solution in Dubai

How to Start an E-Commerce Solution in Dubai
How to Start an E-Commerce Solution in Dubai

Are you interested in opening an e-commerce solution in Dubai? E-commerce solution or business is one of the popular businesses embraced by UAE nationals. With the stable economy and friendly business environment in Dubai, it is so easy to start an e-commerce solution and earn money right away.

Therefore, to start an e-commerce solution in Dubai, here are the best steps to know before delving into the business fully;

  1. Select the right business model for your e-commerce business
  2. Choose your preferred location
  3. Register your business trade name with DED
  4. Obtain a professional trading license
  5. Set your e-commerce store
  6. Create payment gateway

Using the above steps will ultimately help you to create a successful e-commerce business in Dubai. On the other hand, you must obtain a professional trading license from DED, popularly known as the Department of Economic Development, which is a body dealing with the issuance of a local trading license in the UAE for you to start an e-commerce solution in Dubai.

Similarly, there are internet solutions nearly in all places in Dubai. This makes it easy for investors to start an e-commerce solution easier and faster. A recent study has it that the UAE has more than 60% of internet buyers based in Dubai.

Thus, this makes several business investors look forward to starting an e-commerce solution in a land full of endless opportunities. Therefore, one of the most frequently asked questions online is how to start an e-commerce business in Dubai? If you are among those disturbed with this question, we got you covered.

You’ll learn everything you need to know about e-commerce business setup in the UAE. Before that, here are noteworthy points to acquaint you with before meddling into the e-commerce business.

E-commerce business
                    E-commerce business

What is E-commerce Solutions?

Generally, e-commerce solutions are products and services that assist an organization or company business to carry out their business electronically.

E-commerce solutions might involve things such as creating, designing, and operating websites globally. Additionally, an e-commerce solution ought to focus on a certain problem faced in society and find solutions to it. That means; e-commerce is not all about online transactions.

As people are interested in online pieces of stuff, the need for e-commerce solutions has also skyrocketed, especially after the Covid-19 pandemic. Therefore, based on a research article InformationWeek.com, “E-commerce is not centered on money transaction anymore.” Several companies have built an online presence to carry out all manner of their business facets.

Now that you understand e-commerce is not all about money transactions, how much does it cost to start one in Dubai? Continue reading to find out;

How much does it cost to start an e-commerce business in Dubai?

The cost of starting an e-commerce business in Dubai is approximately 4,500 to 5,000 AED.

Since it is an online business, you’d be required to build a website with different pages showcasing your products and other services in your business. Also, sometimes the cost of establishing an e-commerce site might depend on the size of your business.

You can’t compare an Amazon e-commerce website with an upcoming site. Amazon is huge and might include more advanced features that enable it to operate globally. Once you are aware of the size of your business, it will be easy to zero in the amount needed to develop, and design your e-commerce site.

Do you need a license for eCommerce in UAE?

Usually, the UAE offers business investors options where they can start their business. These include a Free and a Mainland zone. You are free to choose any zone for your e-commerce business setup provided your business activities complies with the rules and regulation of that particular zone.

Therefore, the UAE has some set policies regarding online business. And so, whether you are opening an e-commerce solution in a Free or Mainland zone, you must apply for a professional business license. A license must be applied through the Department of Economic Development in Dubai in their respective emirates.

In addition, the entire eTrade license needs the approval of the Digital Government Regulatory Authority and Telecommunications, which presides over the e-commerce transactions and framework in the United Arab Emirates.

So, do you need a license for an e-commerce business in Dubai, Yes? ETrade license certified by the DED permits the GCC and the UAE nationals to carry out their e-commerce business activities through different social media channels.

To obtain a trader license, open an account with DED and register and apply for your license hassle-free. Is it free to apply for an e-commerce license?

Let’s find out:

How much does an eCommerce license cost?

Ecommerce licenses vary from state to state. However, the cost of the etrader license in Dubai costs roughly AED 1,070.

With an etrader license, you can do the following activities in your business;

  • Promote and legally sell products online through your social media account
  • You are allowed to feature products in an online marketplace
  • ETrade will also protect your business name and any other property you hold in an online space.

Sounds awesome, right?

Having said that, you’ve to gauge yourself, and the e-commerce business is the only business you so wish to start. The following points will help you start a successful e-commerce business in Dubai just in a few seconds;

How to Start an E-Commerce Business in Dubai

Select the right business model for your e-commerce business

This is the first step you’d want to consider before starting an e-commerce business. Select the right business model having in mind the target audience, the requirements needed, and the market trends.

You’ll want to start an e-commerce business that is in demand, right? Then, checking the market trend will help you determine which online business to start as an investor. How to Start a Yacht Rental Business in Dubai In addition, on the ground of market potential, you can select either a client to a business model, business to the business model, or business to the client.

Choose your preferred location

After you’ve selected your business model, where do you want it to operate? Location comes as the second point to deem fit here. In most cases, when you want to start an e-commerce business, location plays a big role in your business.

However, you don’t need a physical office for your e-commerce business setup in Dubai. Here are talking of the Mainland and the Free zone the UAE provides as a business ground. Each zone comes with its merits and demerits.

However, it is advisable to choose a location that aligns with your e-commerce business needs.

Register your business trade name with DED

How will customers trust your services? One of the best ways to build trust in your e-commerce business is by registering your trade name through a legit company in Dubai. In this case, DED is the body responsible for trade name verification and licensing.

Therefore, the name you opt for your business must be legit and follow the business naming rules. This includes;

  • The trade name must be copyrights free
  • Short and simple to pronounce
  • Portrays the business picture and the services offered
  • Must submit 3 trade names for approval

Obtain a professional trading license

Once your name is verified by the relevant authorities in Dubai, getting a license should follow suit to be eligible to conduct your business activities in Dubai. And so, you can apply for your e-commerce trading license through the body dealing with issues related to licensing, which is DED.

Currently, Dubai has an E-channel portal you can use to apply for your trading license online. On the other hand, you can visit their offices if you so wish. Getting a license is a heart-wrenching task most foreign nationals find hard to complete. Therefore, we as Vigor Business setup in Dubai help investors looking forward to starting a business in Dubai. We will walk you through all the processes of business setup including licensing application and get your business set in the UAE.

Set your e-commerce store

If you want to start an e-commerce solution in Dubai, it goes without saying you’ll need a stable, optimized, and responsive website for your products.

Therefore, you should register a domain name for your website; get your preferred hosting to help your website be seen live by everyone looking for your products online. Immediately your site is live, you can choose to either hire a developer to design your website or use the free website builders available online to build your site without coding.

 Create payment gateway

If you want to sell products on your website, good manners dictate you must integrate your site with the best payment gateway to offer transactional services.  Therefore, integrate your gateway with your site; you must have a merchant account from your bank account or any other payment services.

Additionally, this payment gateway must be optimized to allow users traffic to your site. Also, in case of any technical hitches, ensure you have 24/7 customer services to help customers with their needs.

Final Thoughts

Starting an e-commerce business in Dubai is a no-brainer, especially if you have some online skills and presence. You must keep in mind to apply for a professional business license through the Department of Economic Development in Dubai. This will permit you to carry out different business activities within your company.

On the other hand, you can contact us, Vigor Business setup in Dubai to help you with business ideas to start in Dubai, and how to optimize your business for productivity