Drop Shipping business in Dubai is a low capital-intensive business. However, the entrepreneur must take an eCommerce license in UAE to conduct online sales. They can take office space in any of the Free Trade Zones or on the mainland.

As there is no requirement of storing the goods, there are no warehousing or storage facilities required. The Free Trade Zones in UAE will be an ideal choice for starting a Drop Shipping Company for investors.

A few of the best Dubai-based Free Zones for eCommerce Licenses are the Dubai CommerCity, Dubai Airport Free Zone, Dubai Silicon Oasis – IFZA, etc. Similarly, in the northern emirates Sharjah Media City, Sharjah Airport Free Zone, and Sharjah Publishing City are ideal for setting up a Drop Shipping Company in UAE.

What is Drop Shipping in UAE?

Drop Shipping is a process where the selling of goods online takes place without actually holding any stock or inventory. Additionally, the vendor sells the products and asks their suppliers to directly ship the goods to the customers.

Hence, the main area of focus for the entrepreneur is to market and sell the products. Consequently, the suppliers and manufacturers will facilitate the sourcing and delivery aspect of the products.

The entrepreneur will be creating an eCommerce website, connecting with customers, identifying the right products to sell, etc. The success of the drop shipping business is the customer network. Also, the people must be made aware of the products and benefits to enhance sales.

Steps in Setting up a Drop Shipping Company in Dubai

The dropshipping process is a straightforward business model that anybody can venture into. UAE is a perfect place for starting a drop shipping company. The investor must follow a few steps in setting up the drop shipping company in Dubai successfully.

1. Do a Market Research

Do market research to identify the list of products you want to sell. Also, study the competition and work out the feasibility of selling the items efficiently without delays.

2.  Identify the Niche

Identify the right product category and identify the demand requirement of the product. Selling niche items will help in realizing revenue faster.

3. Find Suppliers

Locate a reliable supplier who will facilitate the sourcing, shipping, and logistics of your dropshipping business. Quality of products and timely delivery is an important aspect when choosing suppliers.

4. Choose the Company Structure 

Choose the company structure for your drop shipping business depending on the number of shareholders. In mainland. the company can be registered as a Limited Liability Company or a single-owner company.

Similarly, in a Free zone, the investor can set up either a Free Zone Establishment or a Company based on the number of shareholders.

5. Choose the right Business Jurisdiction

Based on the cost of setting up a company, office rent, and other business requirements, the investor must choose the right business jurisdiction in the UAE.

As Drop shipping just requires a back office for managing invoices, supplier relations, marketing, etc., being in a Free Zone is beneficial for the investors.

There are many benefits such as meeting room facilities, well-furnished offices, networking opportunities, and more.

6. Get the eCommerce Trade License

Obtain the eCommerce Trade License from the chosen business jurisdiction. In Dubai, an eCommerce License can be obtained at AED 14,900.

Also, there are various eCommerce License packages for investors to choose from in Dubai based on their business requirements.

7. Setup an Online Store

The investors can set up their online store in UAE by creating a website for their e-commerce store or by partnering with Noon and Amazon.

There is a high internet penetration and online shopping acceptance is high in UAE. It is a perfect place to launch an eCommerce store. A vibrant website with all the latest products will attract customers to the online store. 

8. Update your Product Niche

Constantly conduct market research and stay updated in the eCommerce sector. Add new products to the website and eliminate products that are out of trend.

Cost of Starting a Drop Shipping Company in Dubai

The cost of starting a drop shipping company in Dubai includes the eCommerce license fee from the Free Zone, the office space rent, and furnishing expenses.

An eCommerce License in Dubai will enable entrepreneurs to easily launch their drop shipping company and start selling goods through the online platform. An eCommerce License from Dubai’s popular Free Trade Zone can be obtained for AED 14,900 with a one-visa quota.

Finally, the cost of website development, managing the website, and marketing expense must be considered while calculating the overall expenses of a drop shipping company in Dubai.

Documents required

To set up a Drop Shipping Company in Dubai the investor will have to submit a few documents. The respective Free Zone or Mainland authorities will review the application and issue the Trade License.

• Shareholder Passport Copy and Photograph
• Proof of residence for shareholders
• Duly Filled Application form for the respective Free Zone

Frequently Asked Questions related to Drop Shipping Company in Dubai?

Most of the investors who are about to venture into the Drop Shipping business in UAE will have many queries. Following are a few of the doubts all investors will have.

Is Dubai the right place for Drop Shipping?

Yes, Dubai is a perfect choice for setting up a Drop Shipping Company. The City offers many advantages to investors. The Air, Sea, and Land Connectivity makes it easy for importing items from abroad. Also, there are more than 200 nationalities living in UAE which is a large addressable market.

Again, the business infrastructure in Dubai is top-class. Additionally, the ease of doing business and finding genuine suppliers who have a good network in Dubai is relatively easy. Hence, overall, Dubai is the first choice for setting up a drop shipping company.

Which License is required for Drop Shipping in UAE?

For a drop shipping business in UAE, having an eCommerce License is mandatory. The investor can open an online store and facilitate the sale of the products. They can engage with trusted suppliers in UAE to deliver the items to the customer’s doorstep after making a sale.

How to grow the Drop Shipping business in Dubai?

The Drop Shipping Business in Dubai has multiple growth opportunities. Online media is an effective channel to promote the Drop Shipping Business. The niche product must be promoted in social media channels through influencers.

To gain customer confidence offer trusted products from known brands on the website. Additionally, focus on SEO practices and invest in digital marketing efforts. Constantly conduct market research and find new products and trends.

Add new products to the website frequently to stay competitive in the market. Again, by reducing the shipping time and increasing order fulfilment, the drop shipping business can get more customers.

Why should I seek the Assistance of a Business Consultant?

To obtain an eCommerce License and take an Office Space, there are a few steps to be followed, with the assistance of expert Business Consultants such as ARION, investors can easily set up and run their drop shipping company in UAE without any hassle.

Our expert Business Consultants will also support you in opening a Corporate bank account for your new company and handle all the administrative and visa requirements of the company. Talk to our business consultants right away!

Contact Us: Aurion Business Consultants

The post How to Start a Drop Shipping Company in Dubai? appeared first on AURION.

In Dubai, the most common and in-demand businesses always are Restaurants, Real estate, and car rentals. It is mainly due to the large ex-pat population here who have relocated for jobs from their home country.

Hence, there are immense opportunities for businesses while catering to the basic requirements of the Expat population in the UAE.

Type of Industry Sectors for Setting Up a Company in UAE

With growing digital adoption and internet penetration in the region, there are certain booming businesses in the digital space like eCommerce, Edu-Tech, Digital Marketing Agencies, etc.

Then there are Essential & Lifestyle Services businesses that receive great traction and demand which are Cleaning Services, Logistics Services, Technical Services, Equipment Leasing, etc.

Setting up an innovative business establishment in such niche areas will help achieve Significant market growth and stability easily as there would be very limited competition among the niche.

Let have a detailed look at each of the niche segments. The list is not exhaustive. There are numerous innovative business ideas and niche segments in Dubai that provide immense business opportunities and have a growing demand requirement from the consumers in the region.

Business Opportunities meeting Basic Consumer Needs

1. Restaurant

The Food and Beverages Segment in UAE is highly fragmented and includes a wide range of offerings starting from roadside stalls to 7-star hotels. So, identifying a niche with significant demand is important to succeed in the restaurant business. Dubai is home to more than 200 nationalities.

Hence, there is a sure shot demand for native cuisines of all these nationalities. Setting up a hotel that serves authentic cuisines of a specific national would make you stand out from the competition.

Things to Know for Setting Up a Restaurant in the UAE

Important aspects to consider here are the following:

1. There are certain Approvals from the Food Safety Department, Dubai Municipality for the floor space

3. Get the required Food Safety Certificates – ISO 20000:2018, HACCP, HALAL, etc.,

4. Choose the location close to a residential, office, or easily accessible tourist location, have ample parking facility, etc.

5. Finalize on the Space required and get the Tenancy Contract

5. Get all the kitchen equipment from trusted partners, with approved quality checks

6. Submit the documents to the Department of Economic Development (DED) to obtain the Restaurant License.

7. Choose the right company structure (LLC Company /Professional License) depending on the number of Shareholders.

Prepare the Shareholding Agreement accordingly and submit to the DED along with other documents and fee for obtaining the restaurant license.

2. Real Estate

The Real Estate sector is always an on-demand business in Dubai due to the growing demand from the ex-pat population and foreign investors.

There are various subcategories in real estate where you can start a company like the real estate agency, real estate brokerage, real estate funding & investment, real estate development, real estate consultancy, and more.

Though the real estate market like all other sectors is witnessing a downturn due to the Pandemic, the overall demand for businesses in this field is never going to lower. Property Management Companies are always in demand for providing property deals and real estate information to consumers intending to find new apartments in UAE.

3. Car Rentals

Car Rentals in Dubai are yet another essential service for foreigners, tourists, and the ex-pat population. Most of the residents in the UAE are short term residents or are here for less than five years.

Car Rentals are the most convenient option for the ex-pat population as they can avoid the risk of owning a depreciating asset and the allied costs of registration, renewals, and insurance.

The Car Rental business is lucrative in the UAE. However, there is a relatively significant investment (when considering the cost of the fleet – mostly leased). There is a requirement of having a physical office (150 Sq.m) with a parking facility for cars.

Having an Online Platform to facilitate booking, a GPS tracking facility for car tracking, a service agreement with maintenance shops for repairs, insurance coverage, etc., are overheads to be considered. There is an approval (No Objection Certificate) from RTA required for setting up a car rental service in Dubai.

Business Opportunities in the Digital Sector in Dubai

With the growing digital adoption by consumers in UAE, there are numerous online-based businesses available now in the region. Ecommerce based businesses are the most common one seen in UAE that is on a rise in recent years.

Followed by eCommerce, is the Education Technology-based businesses that develop intelligent applications, video tutorials, online classes, etc., focused on children, college students, and professional training students.

Another most popular business category is the Digital Advertising and Marketing Agency that has grown over years in Dubai. These are relatively low-cost business setup where professionals in the field of Digital Marketing join together to start a company.

The major cost overhead here would be the skilled employee salary, technology platform investment, and digital resource availability for the employees.

Business Opportunities in the Essentials Services

The essential and lifestyle category in UAE is another high demand sector where there is a lot of business opportunities for new entrepreneurs. Under the essential services is the most popular one is the cleaning services and followed by logistics support services.

There is a huge demand from the residential and commercial establishments in the UAE for Cleaning Services. With most of the households run by working people, the availability of cleaning services is on a rise always.

Similarly, the organizations in the UAE require a Cleaning Service Management Company to handle the facility cleaning and maintenance periodically to keep the surrounding apt for business ambiance.

On the logistics Front, courier companies, document clearing services, document handling companies, consumer courier drop-offs services, etc., are in much demand always in the UAE. 

Also, for general trading companies in UAE having assistance for International Trade, providing financial support, a Letter of Credit, equipment leasing, etc., is a must-wanted service.

Hence, in a nutshell, there are a lot of niche business opportunities in UAE that entrepreneurs can tap into by setting up a Free Zone or Mainland Company in the UAE.

To know more about Business Opportunities in UAE, talk to our expert team right away!

Read more about “5 Strategic Industry Sectors Ideal for Foreign Direct Investment in the UAE“.

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