Did you know that the monthly sales of most Amazon sellers range from USD 1,000 (AED 3,673) to USD 25,000 (AED 91,825). According to Jungle Scout, 64% of Amazon sellers achieved profitability in their first year of selling on Amazon – and 20% of these sellers accomplished this within only the first three months! The time has never been better to start an Amazon side hustle or even full-time business. But are you wondering how to sell on Amazon UAE? We’ve compiled this guide to get you set up, selling and taking advantage of what Amazon has to offer.
Whether you are just planning to start an e-commerce business, or you want to expand your existing online shop, this article can help you get started on becoming an authorised Amazon UAE seller.
What are the benefits of selling on Amazon UAE?
Amazon UAE is one of the most visited websites in the country, providing great opportunities for online sellers and entrepreneurs. In fact, statistics say that it ranked first among the top online stores in the UAE in 2020. With that, some of the benefits of selling on Amazon UAE include:
Getting access to millions of online buyers
Getting immediate trust from online buyers
Increased visibility of your brand and/or products
You can take advantage of multiple promotions.
Amazon supports various payment options, including credit cards, bank transfers, e-wallets, invoices, direct debit, etc.
You don’t need to have your own infrastructure.
The platform has teaching centres.
FACT In the UAE, Amazon is one of the largest and most popular online shopping platforms. Statistics show that 43.6% of shoppers in the UAE have bought something from Amazon recently, 64% spend more than AED 100 each on Amazon every time they shop online and 26% shop every week.
What are the requirements for selling on Amazon UAE?
Here are the documents and information you need to prepare to start selling on Amazon UAE:
1. Your business name and contact information
The first few things you need to have to get the rest of the requirements are your business name and contact information. The UAE has company naming criteria, so to ensure that you follow them, we recommend that you work with a company setup agent like Raes Associates. They can help you choose an appropriate business name and register it as well.
2. An e-commerce license
Next, you need to apply for either a free zone or a mainland e-commerce license. A free zone e-commerce license can be more advantageous though, as it provides customs tax exemption, has no currency restrictions and is generally more affordable.
How can you get an e-commerce license?
Getting assistance from a business setup consultants can make the process of getting a license much faster and easier for you. Once you have registered your company name, you just have to decide whether you want a free zone or a mainland license, complete an application form, provide valid IDs such as your passport and they can handle the rest for you.
3. A visa (if you’re a foreigner)
If you are a foreigner living in the UAE, you also need to have a valid residence visa to sell on Amazon UAE. You must visit an immigration centre for biometrics, and you will also need to undergo a blood test, fitness test and a chest x-ray for the UAE residence visa application.
4. A valid corporate bank account
With your license and visa, you can already apply to open a corporate bank account. You need this to receive your sales. The UAE is home to a wide variety of banking institutions that require various documents, especially for foreign business owners, so make sure to do your research.
5. A valid billing address
You will need to provide documents that serve as your proof of address. Amazon will need this to validate your identity and determine where you are located, among other details.
6. A phone number
You need this so Amazon UAE can reach you during the registration process.
7. Your national ID
Amazon will require you to upload your national ID or a valid government ID for identity verification as well.
Do I need to pay anything to set up an Amazon seller account?
No. Signing up for a basic Amazon seller account is free of charge. You only need to pay if you want to get into Amazon Prime, a paid subscription programme that can offer you more perks and additional services.
How to open an Amazon seller account
Once you have all your requirements ready, you can start setting up your Amazon seller account. It is really quick and easy. Here’s a step-by-step guide:
1. Go to https://services.amazon.ae. 2. Click on the Sign up button. 3. Fill in your name, email and password, then submit. 4. Fill out the required business information. 5. Upload the required documents for identity verification.
And that’s it! You just have to wait until Amazon UAE has reviewed your account, and then you can start selling. The review period may take between 24 hours and a few weeks.
Do you want to apply for an e-commerce license?
Raes Associates, a business setup company in Dubai, can't directly help you sell on Amazon. However, they can be a valuable asset if you're a UAE resident interested in starting an e-commerce business and selling on Amazon through a registered company. Here's how Raes Associates can help:
Business Setup: They can guide you through the process of establishing a business entity in the UAE suitable for e-commerce activities. This could be a sole proprietorship, limited liability company (LLC), or another legal structure depending on your needs.
Regulatory Compliance: Raes Associates can ensure your business complies with UAE regulations for e-commerce and online sales. This might involve obtaining necessary licenses and permits.
Taxation Advice: They can advise you on the tax implications of selling on Amazon from a UAE-based company. Understanding VAT (Value Added Tax) and other relevant taxes is crucial for proper business operations.
Banking and Payment Processing: Setting up a business bank account and choosing a payment processing solution suitable for Amazon sales are important steps. Raes Associates might have partnerships with relevant institutions or can guide you through the options.
By laying the groundwork with Raes Associates' expertise, you can ensure your UAE business operates legally and compliantly when selling on Amazon. This allows you to focus on growing your online sales without worrying about regulatory hurdles