Dropshipping in Dubai – Detailed Guide

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Setting up a dropshipping business in Dubai can be a very exciting opportunity for business owners if they have an entrepreneurial mindset and a knowledge of e-commerce. One of the most internet-connected countries in the world is the UAE. It is also the prominent e-commerce market in the Gulf Cooperation Council Region. In this blog, let’s discuss more dropshipping in Dubai- a detailed guide. 

Dropshipping in UAE can be a legitimate option if an entrepreneur is on a thin roof starting a business. UAE is an ideal place for exporting to other countries as it lies in the central location of the Middle East. UAE with its modern infrastructure and free trade zones can overcome the major challenges associated with selling online using a dropshipping model. 

What is Dropshipping?

A dropshipping business is an e-commerce business model in which the vendors do not carry any stock themselves. They accept goods or orders through social media or websites by displaying their products on social media. They ask their supplier to send their commodities directly to their clients. This makes the seller not involved in any kind of shipping practices or carrying of inventory. 

On the behalf of the dropshippers, they ask their suppliers to do the whole work. It also includes shipping products to clients. Dropshippers can save time, energy, and money as they have little storage cost, inventory cost, and staffing. These features make the entrepreneur in Dubai start a dropshipping business. 

Entrepreneurs can start a dropshipping business as a side hustle and can later turn it into a full-time job in UAE. Entrepreneurs can earn a substantial amount of money if they venture into dropshipping business.

Due to its low barrier to entry, a dropshipping business is attractive as it cuts out logistics and traditional supply chain steps. The details of the shipment and the order placed are sent directly to the manufacturer. The product gets shipped from there to the customer. The dropshipping business helps the entrepreneur in such a way that it eliminates their need for storing stock, managing inventory, quality control, and handling shipping. 

A middleman is the owner of a dropshipping business. Finding interesting products to sell online and marketing them to customers is their key role. They pass the order onto the supplier after taking payments from the customers while retaining a share of the profit. To target a specific audience, most dropshippers begin by building a website. On large marketplaces, they then keep the product for sale. 

For each product they sell, the dropshipper agrees on a deal with the suppliers. However, the supplier deals with order fulfillment. This strategy is quite beneficial to both the supplier and the dropshipper. The supplier can find new markets for their product; they may not know the dropshippers market.

The manufacturer will take care of the distribution network. The customer can pay for their product and choose what type of shipping they want. The manufacturer distributes the commodity in an acceptable time frame. 

Finding the niche market is important to help boost the chances of success for entrepreneurs. Entrepreneurs will be able to target a certain group of customers if they sell a very specific product. This however results in stronger sales. Entrepreneurs need to explore the competition in their field of interest. It is also wise to think creatively as it helps to figure out where to focus their efforts. 

Working with the best business setup in UAE can influence the success of the business when the entrepreneur is ready to start drop-shipping in the UAE. A knowledgeable consultant can guide the entrepreneur in making the right decision. A&A Associate provides valuable information while setting up dropshipping business in the UAE. 

Steps to Start Dropshipping in Dubai 

It is fairly straightforward to start a dropshipping business in Dubai. The following are some steps to start dropshipping in Dubai: 

Be Specific About the Business Activity 

Every business needs to list its business activities to successfully apply for a business license in Dubai. From a predetermined list, the entrepreneurs are asked to choose the most appropriate option. They will have over 2000 to choose from. Whatever the industry, there will be plenty of options that apply to the specific business of the entrepreneurs. It is important to list every action that their business undertakes.

Choose a Name for the Company 

While naming the company, it should adhere to the UAE’s strict naming conventions apart from the name needing to be snappy and memorable. The government of UAE has addressed that the name of the company should not contain any language that is considered offensive or blasphemous. It should also not be the abbreviation of any person’s name. The name of the company should also not caption the names of any well-known organizations. 

Determine the Business Setup Type and Apply for the License

The entrepreneurs should choose where to set up their business; in the mainland of the free zone. It is better to seek advice from a business expert as both have their advantages.

To be eligible to conduct business activities, the license is a must-have document in the UAE. Before selling the products to UAE residents, the dropshipping business in Dubai forces them to have a license. To carry out business activities without having any issues in the Dubai marketplace, the entrepreneur receives an e-trader license. The Department of Economic Development is responsible for licensing-related issues in the UAE and the entrepreneur can get their trade license from there. 

The entrepreneurs are need to submit the following documents for getting their license in Dubai: 

• Passport copies for shareholders 
• Address proof and proof of ID for shareholders and the directors 
• A copy of the confirmation of trade name
• Memorandum of Association
• Articles of Association

Build Website or Online Presence 

It doesn’t guarantee the entrepreneurs enough space to start selling their products by creating an online store and social media channel. An entrepreneur should build their online presence to be known globally. As dropshippers, entrepreneurs must know what their brands and business stand for. 

To benefit from the brand, entrepreneurs must set and optimize their social media profiles. It is also important to put attractive images on Facebook, Instagram, and other social media sites to grab the attention of the audience. 

Apply for the Visa 

This step shouldn’t take more than a week and it contains four stages including a medical test. The entrepreneurs are ready to get dropshipping across the UAE once this is done. 

The experts at A&A Associate help entrepreneurs when they find their way through the latest regulations complicated. They are highly experienced in supporting businesses and get all set up within a few weeks. They manage applications and communicate with authorities on behalf of the entrepreneurs. This helps business owners to start showcasing and selling their products online in no time. 

Drop Shipping in Dubai- Advantages and Opportunities 

Starting a dropshipping business could be a very profitable enterprise in the United Arab Emirates if the entrepreneur has a good understanding of consumer trends. They should also have a keen knowledge of what products are likely to become popular and a strong knowledge of e-commerce practices.  

UAE’s internet penetration is one of the highest in the world. People are accustomed to shopping online as e-commerce has seen a big expansion in the country in recent years. Ecommerce is relatively a young market although it was popular earlier. In the next few years, it is expected to more than double in size. The dropshipping company still has plenty of opportunities to find its niche and become a real success.

The dropshipping business in Dubai is truly connected to global logistics as it is one of the world’s biggest ports and trade hubs. This makes it quicker to ship products from UAE to foreign destinations and vice versa. Dropshipping is legal in the country and UAE takes a positive view of entrepreneurship. Starting a dropshipping business in Dubai is easy compared to many other places across the world due to its great quality internet connection and quick business setup in Dubai. 

The advantages of dropshipping business in the UAE are many. The following are some of them: 

Dropshipping Costs are Low 

The barrier to entry is relatively low for dropshipping in the UAE. This is because the entrepreneur does not have to manage product development, shipping costs, and storage solutions. The entrepreneurs find it easier to establish a dropshipping business with little capital. 

Entrepreneurs Can Offer a Wide Range of Products

Several types of products can be sold by dropshipping companies. This is because they are not branded to a specific niche and also do not require warehousing. Entrepreneurs can work with a variety of product sources in different niches as they do not have a brand. A dropshipping company can sell whatever they like as long as the marketing is available for each product. 

The entrepreneurs are enhance with their freedom from warehousing limits. Dropshippers have limitless potential for the types of products they choose to sell as they don’t have to store their products before shipping. 

No Shipping and Logistics 

The manufacturer or the wholesaler handles shipping. This is a convenient benefit of dropshipping in the UAE. Entrepreneurs do not have to work out distribution, storage, shipping, or quality management in their supply chain. This offers quicker shipping to their customers and is also an added potential benefit.  

UAE has quickly growing e-commerce sales and is a particularly great country to start a dropshipping business. E-commerce sales would continue to rise with the population of UAE unanimously browsing online. 

Different Types of DropShipping Businesses 

The following are some of the most common types of drop shipping businesses in the UAE: 

Product Reselling 

One of the most common types of dropshipping is product reselling. Sellers make their products available for purchase on their website or market platform after finding them from various sources. Those entrepreneurs who are great at marketing a product or are experts in their fields find this type of dropshipping beneficial. The entrepreneurs will have to pay for products upfront.

Business Extensions 

For retailers who do not have an online presence, business extensions provide dropshipping services. This model promotes the retailer’s product and it works as a middleman. They ask the retailer to ship the product to the customer when the dropshipper makes a sale. 

Business extensions require more effort than product selling. This is because they must develop an intimate relationship with a specific retailer.  Their products and services should also be known well by the entrepreneur. Due to the lack of competition, this model can prove lucrative. 

Product Creation

This type of dropshipping bundles a variety of products into a single product for purchase.This form of dropshipping requires the seller to think critically about their new product. Product creation allows for little competition and has unique market opportunities. 

It is important to consider that product creation may result in items shipping at the same time. This is because it entails shipping numerous products and creating a bundled product from a single manufacturer or wholesaler. 

Print-On-Demand 

The print-on-demand dropshipping model is suitable for those who prefer to work with items with text or images printed on them such as t-shirts, or mugs. This model may suit their interest. 

Creators who upload their text or image to the dropshipper can benefit from this type of dropshipping. The dropshipper prints the file on the commodity and ships it on behalf of the creator when the product sells.

A&A Associate is a management consultancy firm that provides cost-effective value-added solutions in UAE. They meet all the business needs of the entrepreneur with a fast-growing team of dedicated and qualified professionals. 

It is beneficial to hire a business consultant to save costs while starting the business. The experts at A&A Associate handle all sorts of technical, financial, and administrative aspects while the entrepreneur focuses on marketing.