31 Aug 2024
As digital retail continues to grow, who can blame you for wanting to start an online business in Dubai?
In fact, ecommerce has experienced a tidal wave of growth during 2020 due to its convenience and abundance. While many brick-and-mortar businesses have experienced significant contractions over the past couple of years, many others have flourished to expand their businesses online.
There are many opportunities for passive income with the digital marketplace, which has become increasingly popular since the pandemic.
If you are interested in starting an online business, you've come to the right place. Your online business idea could become a reality, faster than you ever imagined.
This guide will walk you through all the steps you need to launch and operate an e-commerce store successfully in Dubai.
As many local businesses have discovered, it is not as difficult as you might think to start an online business in Dubai.
In either case, the path to online success remains the same, whether you're opening up your current business to online transactions or starting a new e-commerce venture. Anyone willing to work hard can quickly see their online business ideas earn big money if they wish to start an online business.
Anyone who wants to create a profitable eCommerce site faces challenges, but it's not impossible.
In 2020, retail e-commerce sales worldwide will amounted to USD 4.28 trillion, representing 18% of retail sales.
In the UAE, e-commerce recorded a USD 3.9 billion market value in 2020, up 53% year-on-year. By 2025, it will be worth USD 8 billion.
According to a recent study on the digital transformation in MENA and Pakistan, 53% of MENA consumers shop online more now than before the pandemic.
The lifestyle perks of initiating an online business in Dubai are incredibly appealing. First off, you are your own boss. Once you have set up the important business essentials like writing a business plan (if required), building your own website, setting up an eCommerce store and building a social media presence – you can start right away.
With a reliable and consistent customer base, you'll be amazed at how easy it is to maintain a passive income - without the need of a brick-and-mortar store!
Let's brainstorm together.
Before you start your own online business, ask yourself the following questions:
You're likely to find a market for your skills if you have a particular skill set or are a professional in an interesting field (e.g., fitness, creative writing, cooking).
Writing and selling ebooks presenting digital products to your clients is a great way to make money online.
You can showcase your creative abilities online with books, audio courses, digital downloads, and printable guides. They can also generate revenue in the background, reaching a broader audience within a global audience.
According to Shopify, When it comes to refining a good online business idea and deciding on a service or product to sell, Shopify suggests the following:
Find related products – You can always offer a service or product that can improve an existing product. When the wear of face masks became mandatory and in high demand, several individuals began selling accessories such as mask holders, strings, beads, and more.
Many people ask if it is possible to start an online business without capital investment. The answer is yes. Technically speaking, you can start an online business for free. With no physical brick and mortar storefront to accommodate, starting an online business has fewer overheads and only a few startup costs to consider.
Organizing social media accounts and paying for eCommerce and website construction are all part of the digital world. Starting an online business can be a challenging experience for some people, but you don't need to be very tech savvy to do so.
B2C is undoubtedly the most popular model due to its low entry barriers, but there are many different types of online business models you can adopt depending on what your business is.
B2C is the most popular online business model and encompasses a wide range of options, including:
Business-to-business (B2B) transactions involve businesses selling their goods or services to other businesses. Most of the time, the buyer resells the goods or services to consumers. These transactions have longer sales cycles, but have higher order values and recurring sales.
In the C2B model, freelancers and independent contractors are compensated for their work. The C2B model refers to e-commerce whereby clients post jobs they need done on a website, and businesses compete for the work - think Upwork or Fiver. Affiliate marketing services are also classified as C2B.
A consumer-to-consumer (C2C) online business in Dubai is also often known as an online marketplace. A business built on Amazon or eBay, for instance, might connect customers to exchange goods and services and earn money by charging transaction or listing fees.
The dropshipping business model is a unique way to start an online business.
It is a fulfillment technique in which a shop does not stock the items it sells, but instead buys them from third-party vendors who deliver the items directly to buyers. As a result, the seller does not have to handle the product directly. By connecting buyers directly with manufacturers, dropshippers act as middlemen.
There is no need for a physical storefront, staff, utilities, or even inventory to dropship, all you need is a website and the ability to drive traffic and convert it into sales.
Taking the plunge into ecommerce online business? Learn everything from picking a niche, building a website, attracting clients, making money from Instagram and more.
Here's how you can turn your side hustle into a profitable business and get paid - whether you have a great idea for an online business.
To set yourself up for online business success, follow these steps.
1. Choose a product or identify a market gap
You need to remember that this first step can be one of the most challenging for most aspiring entrepreneurs. You want to find profitable, trendy products with good margins, which may be single products or a comprehensive product line that fills a market niche. It's also possibly the hardest step of all.
Due to the costs involved in e-commerce, including SaaS fees, shipping fees, advertising costs and labour, it is important to choose products that have profit margins of at least 50%. The first step in absorbing customer acquisition costs is finding a suitable product or range.
Once you have a great product in mind (don't tell anyone yet), you need to think about how to source it.
Research online using sites such as Yellow Pages, TradersFind and Alibaba. Reaching out to local manufacturers and suppliers as well as your network should also be a logical first step when seeking a vendor.
Competition is fierce online, so every e-commerce company strives to deliver high-quality products that meet the increasing expectations of consumers. It is crucial to source products that encourage loyalty and positive brand associations as ecommerce becomes more customer-centric.
Look for suppliers in locations with strong infrastructure and convenient transportation so you can easily purchase and deliver the best products.
2. You should choose a company or brand name for your online business.
There aren't many limits on what you can call your online business in Dubai. Here are the rules:
Consult one of our business setup experts if you are unsure whether your business name is legal.
3. Buy a domain and social media handles
An online business cannot succeed without domain names and social media handles. Next, you need to secure a domain name and (hopefully matching) social media handles. The domain name is the address at which your e-commerce shop will be located. Your social media handles are your name on the platform.
You may need to get creative to find one that works well with your business name if your domain name and social tag aren’t available. If the ones you want aren’t available, you may need to get creative. Online businesses in Dubai typically choose top-level domains such as .com or country-specific domains like .ae.
Here are some of the most popular places to buy a domain:
4. Obtain an eCommerce license
Your next step will be to determine if you need an e-commerce license.
The UAE's e-commerce laws stipulate whether a large or small business can sell physical products or services via online platforms. If your business sells physical products in the UAE, then you will need an e-commerce license.
A fitness trainer or life coach offering online classes doesn't need an e-commerce licence. Instead, they need a professional licence, which allows them to offer their services.
In addition, you do not need an e-commerce license if you sell digital products, even if you have payment gateways and online transactions. Your business is categorised as "online services" since your business does not deliver physical goods.
It is best to consult a company formation specialist if you are unsure about what licences and activities to apply for your online business.
5. Choosing an eCommerce platform is the fifth step
How does an e-commerce platform work?
A platform for running an online business is an all-in-one solution.
This is an essential part of your online business interface that ensures great customer service for potential buyers. This platform handles both vendor-side and customer-side aspects of a transaction.
How can I find the best e-commerce platforms?
In this article, we will take a look at the most popular e-commerce platforms and explain the advantages they offer online businesses.
B2C ecommerce platform Shopify is one of the most popular
A shopify store
Since its launch in 2004, Shopify has quickly become the world's most popular, fully-managed ecommerce platform, used by over 1 million retailers around the world.
Shopify's popularity comes largely from the ease of use of its user interface and the excellent app marketplace. Unlike Magento, Shopify is a software as a service (SaaS) monthly membership service that also includes website hosting, domain hosting, and email hosting.
Explore the wide variety of paid and free themes available for your store on Shopify. These themes come equipped with numerous features to help boost your product sales. Keep in mind, Shopify's coding language is exclusive and known as "Liquid." For a more personalized touch, you may need to enlist the help of a Shopify developer to adjust or create template code for your brand. However, if you're content with using a pre-designed theme, you can still achieve an impressive online presence and business identity through Shopify.
Woocommerce
Your WordPress site can easily be transformed into an online store with WooCommerce, a WordPress plug-in. In spite of being a plug-in, WooCommerce is an exceptional online platform. It comes with virtually all of the features that every other known platform possesses. It has 3.8 million users worldwide, making it one of the most popular e-commerce platforms.
A WordPress site is required to use WooCommerce, which is a free and open-source e-commerce platform. The platform is great for small- to medium-sized enterprises, but does have some limitations for businesses.
Unlike Shopify, WooCommerce is not an out-of-the-box solution that you can get up and running in one day. WooCommerce is more 'hands-on', as is WordPress.
MAGENTO
Online retailers regard Magento as one of the most reliable and effective e-commerce platforms. In fact, Magento is popular with large businesses and enterprises seeking growth. Due to its high scalability and performance, Magento accounts for a quarter of the e-commerce market. Companies like Burger King, Huawei, and Liverpool Football Club use this platform.
It is regarded as the best ecommerce platform for enterprise-level online shops. Since Magento is geared towards enterprise-level companies, it isn't an easy platform to navigate. In order to build and run a Magento-based online business in Dubai, you're likely to need the help of developers.
Bigcommerce
In terms of features and ease of use, BigCommerce rivals Shopify with over 55,000 online stores.
There is a big difference between the Basic Shopify plan and the BigCommerce Standard plan pricing. These plans are the respective "entry-level" plans with their own inclusions and exclusions.
We can probably rule out Magento from the start if you are reading this guide and don't run an enterprise-level online store.
If you are looking for a low-cost platform and don't mind getting your hands dirty, WooCommerce is a great option.
If you prefer ease-of-use, functionality, and a self-managed solution, we recommend you choose between Shopify and BigCommerce.
Shopify is the best option for most people starting an online business thanks to its intuitive UI, great documentation, community support, app marketplace and amazing themes.
6. Design your brand
A professional brand design is essential to your success, whether you run a big business or a small online business. A great business brand helps prospective clients recognize and remember you and your services. It can be carried across any online platform, including social media accounts, web design, logos, and products.
Unless you have graphic design skills, you shouldn't take shortcuts when it comes to branding. In fact, even Google recommends developing a great brand for 2022 and beyond.
A brand represents the personality, values, and philosophy of your business. A brand is a social construct that identifies who you and your employees are. Your online business needs to feel like a place shoppers want to shop. In order to maintain shoppers' attention spans long enough to convert them into customers, your brand is the solution. You get a very short time span to create the right impression online.
7. Create a beautiful website
An important component of all profitable online businesses is a professional website. The design should reflect your brand, tone, and be consistent across all platforms.
Once you have a good brand design, it’s time to build a website on the ecommerce platform you’ve chosen! If you have chosen the right platform, you may be able to do this yourself, but again, it is nearly always best to hire a professional unless you really know what you're doing.
Professional, modern websites require a lot of effort, and it's very easy to create a poor user experience. Here are some things you should know:
For those unable to afford a custom build, we recommend buying a premade theme. You can expect to spend a few hundred AED on a good theme.
8. Digital Marketing
Get more visitors to your Dubai online business
Now that you have an online business in Dubai, what's next? Customers?
The answer is Digital Marketing, and it can make or break your online success.
Content Marketing
If you want to sell online, you must create high-quality content.
With poor, sparse content, it's nearly impossible to drive organic traffic.
Consider your customer's perspective: they want to know why they should buy from you. Your job is to explain exactly why.
This message is communicated through content marketing.
An online store's content plays several crucial roles:
To keep your community engaged, ensure you post content relevant to your target audience and on the right channel. After all, content marketing is about building a relationship with your audience and creating an accessible avenue of communication. This helps to build loyalty and trust among your target customers.
This will essentially help you provide useful market research data, which will help you grow your online business in the long run. Knowing who you need to market to and what makes them tick will increase profits and provide plenty of growth opportunities.
Content for the web
The following information is included in web content:
You can receive a penalty from search engines if you duplicate content from other websites.
Provide accurate descriptions of your products, describe their quality, and take professional photos and videos to demonstrate their benefits.
Building trust is everything online. Without a physical presence to help sell your brand, your content is all that customers have when deciding whether to purchase from you.
Search engine optimization
A search engine optimization strategy is a collection of practices that assist search engines in discovering, assessing, and ranking your content.
While SEO is often regarded as a mysterious and complex subject, in reality, it is simply the art of creating the best possible website for your customers. You will do well in SEO if your website answers customer questions better than other websites, and if Google's bots (software that crawls and analyses your site) discover a healthy codebase and site architecture.
Today, most companies hire an SEO consultant for assistance. SEO and content marketing go hand in hand. As you build a range of content, you'll naturally rise in the SERPS (Search Engine Result Pages). Your rankings will also increase as your site becomes more authoritative.
Investing in SEO can become one of the highest-ROI (return-on-investment) activities for your online business in Dubai.
Advertising
A business that wants to scale rapidly in 2022 and beyond must invest in advertising. SEO is reliable over the long run, but it takes at least 6 months for it to kick in and start producing tangible results. In order to get traffic, customers, product reviews, and revenue right now, what should you do?
Getting your business off the ground quickly requires advertising, both PPC (Pay Per Click) and paid social media. Ad costs are going up, but as an investment in your long-term success, you will likely want to factor them into your margins as they continue to rise.
Using Google Local Service Ads is a viable option for many online businesses, especially those just starting out. Because Google ads can be used on your website regardless of how much traffic your online business receives, they are a great idea at first.
Marketing through affiliate programs
The affiliate marketing system now works for many online businesses. You can embed links to products that you're promoting as an affiliate. When a customer visits your site and buys the product, you get a commission.
Marketing on social media
Nowadays, most online businesses use social media to promote their products and services. In fact, many companies hire social media marketing specialists to manage all their social media content.
Facebook, Twitter, YouTube, and other social media platforms are goldmines for potential customers, since 71% of adults use social media.
As one of the most highly-recommended e-commerce website marketing strategies, social networking is an excellent way to spread the word about your brand, events, and promotions.
It's inexpensive and easy to use social media if you know how to use it correctly. Moreover, you can streamline your content creation to let people know what makes your business special.
Although social media is convenient, you don't have much control over it as a business owner. As such, you can be subject to their rules of engagement, which may change as algorithms change.
Therefore, collecting email addresses is a surefire way to stay in touch with your customers.
Marketing via email
A reliable customer email list is a highly coveted position for any small business.
Engaging directly with your customers with email marketing keeps them informed of the activities of your business. You can instantly and efficiently communicate your latest updates, products, and offers and link to your social media accounts and website. Email marketing is an ideal way to develop an ongoing relationship with your customer base. It is also a great way to conduct market research to get to know your target market better.
You can create a shoppable environment through targeted, personalised newsletters. This is also a great way to ensure that your audience feels valued by your brand.
1. Choosing the right business structure is the first step
Choosing a company structure depends primarily on your activities and preferences. For example, if you want 100% ownership or prefer the support of a local partner or sponsor.
An e-commerce business should be structured as a Limited Liability Company (LLC) or a Free Zone Company. A business setup consultant can help you determine the right structure.
2. Establish your online business in the right jurisdiction
It will depend on the nature of your e-commerce business whether you register in a free zone or on the mainland.
A mainland licence allows you to sell your products and services directly to the local market, whereas a free zone license requires you to work with a local distributor.
In addition, Dubai offers more than 30 free zones offering complete foreign ownership and international trade.
You should take into account the factors that will benefit your business more in terms of building market share and scalability when selecting a jurisdiction.
3. Establish a business bank account
Having obtained your e-commerce licence and established your business, you should open a business bank account to manage and track your finances.
For convenience and to avoid additional fees, you may be tempted to use your personal bank account for business finances. However, this can make tracking the revenue from your business much more challenging.
This can also lead to inaccurate bookkeeping when calculating tax liabilities and cash flow.
Now that you know more about setting up an eCommerce business in Dubai, it's time to take the next step. Get everything ready to launch your online business by hiring a reputable business setup partner like TradersFind.
Considering starting an online business in Dubai? TradersFind is here to support your journey.
Launched in 2023, TradersFind has quickly established itself as a leading B2B portal in the UAE. We specialize in connecting businesses, suppliers, and buyers across various industries, making us an ideal platform for entrepreneurs looking to enter the Dubai market or expand their existing operations.
As a comprehensive online B2B marketplace, TradersFind offers several advantages for businesses:
Whether you're a manufacturer, distributor, or service provider, TradersFind provides the tools and resources you need to thrive in Dubai's dynamic business environment. Our platform is designed to cater to businesses of all sizes, from startups to established corporations.
By choosing TradersFind as your B2B partner, you're not just listing your business – you're joining a growing ecosystem of UAE-based companies and international traders. This positions you perfectly to tap into new markets, find reliable suppliers, and grow your customer base.
Start your online business journey with TradersFind today and unlock the potential of Dubai's thriving business landscape. Let us help you connect, grow, and succeed in the digital marketplace.
