eCommerce in UAE is witnessing a rapid spike in growth over the recent years. There is a rapid evolution in the eCommerce ecosystem in the region. These include Selling Items on Social Media and eCommerce Platforms in UAE.
The Trade License to sell items on Social Media is the eCommerce License. It can be obtained from the UAE Mainland or Free Zones. An ecommerce license in UAE is an essential requirement of selling items on social media and other ecommerce platforms in UAE.
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To become a social media seller and sell clothes, shoes, perfumes, or even own craftwork to customers, it is essential to apply for the right business license to operate legally in UAE. All economic activities in UAE are regulated and sellers need to have a valid trade license to operate.
Selling Items on Social Media – Things to Do
UAE Is transforming itself into a global eCommerce hub with more companies venturing into the market, growing business infrastructure, technology adoption, and a rising population.
So, obtaining an online trading license (ecommerce) enables the company or individual to sell goods online in UAE without any hassles.
There are enormous opportunities for start-ups in the eCommerce sector in UAE. From selling goods online to logistics and technology support, the eCommerce ecosystem is growing in the region. The company can sell Items on Social Media and other e-commerce platforms. using the eCommerce license issued in UAE.
Having a valid eCommerce license is essential in for companies to curb counterfeit items sales online. There are a host of counterfeit items sold on social media platforms ranging from bags, perfumes, watches, accessories, cosmetic products, etc. Hence, consumer protection and safety are essential for customers.
How to Start Selling Items on Social Media in UAE?
It is mandatory for a trader, entrepreneur, or start-up to have a valid trade license to conduct any form of commercial activity in the UAE.
This includes Selling Items on Social Media and other online platforms. For trading in the online space, an e-commerce license is mandatory. The seller can then open a seller account on Amazon or other online portals and conduct trade.
Selling Online in UAE Via Amazon
Over the recent years there is a surge in digital interaction among buyers and sellers, and the Amazon FBA is an existing income-generating avenue that is growing in popularity in UAE. The Amazon FBA (Fulfilment by Amazon) is a becoming popular means to earn money through selling online via the Amazon online store.
So, for entrepreneurs, by taking an Amazon FBA Account along with a License to sell online in UAE can reap heavy benefits due to the rise in demand for online shopping in the region.
The FBA Platform from Amazon deals with third-party sellers as well as licensed sellers. Most of Amazon’s sales in the UAE come from third-party sellers.
Depending on the customer demand and tracking the recent sales trends, entrepreneurs can list items in their Amazon store. They can reap the benefits of the online sale and earn significant profits.
What is ‘Fulfilment by Amazon’ (FBA)?
The Amazon FBA (Fulfillment by Amazon) is a popular way for the seller to directly ship their products to an Amazon Warehouse. Then Amazon will handle the sale, which involves picking the product from inventory, shipping, customer service, and returns.
The companies can obtain an ecommerce trading license to sell Items through Social Media or any online marketplaces with the link to the Amazon Store.
Entrepreneurs can promote the items they sell on Amazon via Social media ads, also sell directly through links posted in Social media.
So, with an online License, Amazon account and a social media profile the entrepreneur can find their niche products online and sell them via social media and other platforms too.
Order Fulfilment Options for Sellers on Amazon
There are three options for order fulfillment when it comes to selling products online via Amazon:
- Pack and Ship the Product by the Seller (As Fulfilment by Merchant or as a Seller Fulfilled Prime)
- Outsourced storage, packaging, and shipping to Amazon using FBA
The seller can switch between the order fulfillment process any time after they have put up the product for selling via the Amazon website. That way, the seller can enjoy peace of mind and Amazon does the heavy lifting work of packing, sending out the order, handling customer queries, etc.
Cost of Storing your Products at Amazon Warehouses
There are storage and fulfillment fees to be paid to Amazon. The more the investor store, the more the expense. Also if goods are stored for more than 180 days, the cost goes high. It is to increase the turnaround time and keep products moving.
With FBA, the storage and inventory fee is relatively cheaper. The seller need not spend large amounts of capital upfront for storage space.
Depending on the package sizes the cost of storage varies. For small and lightweight packages, the price is USD 5 and for medium, to large heavy boxes, it is USD 13. The exact quote will be received while setting up the account and entering the shipment information before making the final confirmation.
Maintaining the required inventory of the product in Amazon’s Warehouse is the responsibility of the seller. Also, the seller must follow the strict packaging guidelines of Amazon while delivering it to the warehouse. The packaging and delivery to the customer are by Amazon.
To know more about the license for Selling Items on Social Media and starting an eCommerce Company in UAE. Talk to our expert team right away!
