How to Start a Drop Shipping Company in Dubai UAE?
Dubai is an ideal destination for entrepreneurs looking to start a drop shipping company. With its high internet penetration and a booming eCommerce sector, it presents unparalleled opportunities for business growth. Establishing a drop shipping business in Dubai holds immense potential and promises a prosperous venture for aspiring entrepreneurs.
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.
With no need for storing goods, Free Trade Zones in UAE make for an ideal choice to kickstart a Drop Shipping Company. Investors can benefit from the absence of warehousing or storage facilities, making it a lucrative opportunity.
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?
Dropshipping is a streamlined process where online sales occur without the need for inventory or stock. Essentially, vendors sell products and seamlessly coordinate with suppliers to ship goods directly to customers. As a result, entrepreneurs can focus on marketing and selling, while suppliers and manufacturers handle product sourcing and delivery.
The key responsibilities for entrepreneurs in dropshipping include creating an eCommerce website, engaging with customers, and identifying optimal products to sell. The success of a dropshipping business heavily relies on building a strong customer network. It is crucial to effectively promote the products and highlight their benefits to maximize sales.
Steps in Setting up a Drop Shipping Company in Dubai
The dropshipping process is a simple and accessible business model that anyone can pursue. The UAE presents an ideal environment for launching a drop shipping company. To establish a successful drop shipping venture in Dubai, investors must follow a few key steps diligently.
1. Do a Market Research
Perform thorough market research to identify the products you intend to sell. Additionally, analyze and evaluate the competition to determine the feasibility of efficiently selling these items without encountering any delays.
2. Identify the Niche
To expedite revenue generation, it is crucial to identify the appropriate product category and ascertain the demand requirements. Offering niche items can significantly contribute to the swift realization of revenue.
3. Find Suppliers
Finding a trustworthy supplier who can handle the sourcing, shipping, and logistics of your dropshipping business is crucial. When selecting suppliers, prioritize product quality and timely delivery, as they are vital factors to consider.
4. Choose the Company Structure
When establishing a drop shipping business, the choice of company structure depends on the number of shareholders involved. In mainland areas, the company can be registered as either a Limited Liability Company or a single-owner company. Similarly, in a Free zone, investors have the option to set up either a Free Zone Establishment or a Company, based on the number of shareholders. Carefully considering the appropriate structure ensures a solid foundation for your business venture.
5. Choose the right Business Jurisdiction
When considering the expenses involved in establishing a company, renting office space, and meeting other business necessities, it is crucial for investors to select the appropriate business jurisdiction in the UAE.
For investors involved in dropshipping, where managing invoices, supplier relations, and marketing are the primary requirements, being located in a Free Zone can prove advantageous. This choice offers various benefits, including access to well-equipped meeting rooms, fully furnished offices, networking opportunities, and more.
6. Get the eCommerce Trade License
To operate an eCommerce business in Dubai, it is necessary to acquire the eCommerce Trade License from the designated business jurisdiction. In Dubai, you can obtain an eCommerce License for a fee of AED 14,900. Moreover, there are multiple eCommerce License packages available for investors in Dubai, ensuring that they can select the most suitable option based on their specific business requirements.
7. Setup an Online Store
Investors have the opportunity to establish their online stores in the UAE through two avenues: creating a dedicated e-commerce website or forming partnerships with renowned platforms like Noon and Amazon. With a significant internet penetration and widespread acceptance of online shopping in the UAE, it is an ideal destination to launch a thriving e-commerce venture. A captivating website showcasing a diverse array of cutting-edge products will undoubtedly allure customers to the online store.
8. Update your Product Niche
Consistently engage in market research and stay abreast of the ever-evolving eCommerce landscape. Continuously enrich your website’s product offerings by introducing new and trending items, while promptly removing those that have fallen out of favor.
Cost of Starting a Drop Shipping Company in Dubai
Starting a drop shipping company in Dubai involves several costs, including the fee for obtaining an eCommerce license from the Free Zone, office space rent, and furnishing expenses.
Entrepreneurs can leverage an eCommerce License in Dubai to effortlessly launch their drop shipping business and commence selling products through online platforms. Acquiring an eCommerce License from Dubai’s renowned Free Trade Zone comes at a cost of AED 14,900, granting a one-visa quota.
When calculating the total expenses of a drop shipping company in Dubai, it is crucial to take into account the costs associated with website development, website management, and marketing. These factors play a significant role in determining the overall financial obligations of the business.
Documents required
To establish a Drop Shipping Company in Dubai, the investor must submit the required documents. Subsequently, the application will undergo a thorough review by the respective Free Zone or Mainland authorities, following which the Trade License will be issued.
- 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?
Investors embarking on the Drop Shipping business in the UAE often find themselves grappling with numerous queries. Here are some common doubts that arise among all investors.
Is Dubai the right place for Drop Shipping?
Dubai is an ideal destination for establishing a Drop Shipping Company, offering numerous advantages to investors. The city’s exceptional air, sea, and land connectivity facilitates seamless importation of goods from abroad. Moreover, with over 200 nationalities residing in the UAE, the market potential is vast.
Furthermore, Dubai boasts a world-class business infrastructure, making it effortless to conduct operations. The ease of doing business and the availability of reliable suppliers with extensive networks in Dubai contribute to its appeal. Consequently, Dubai stands out as the preferred choice for setting up a drop shipping company.
Which License is required for Drop Shipping in UAE?
To operate a drop shipping business in UAE, obtaining an eCommerce License is an absolute requirement. This license enables investors to establish an online store and efficiently facilitate the sale of products. By collaborating with reliable suppliers in UAE, they can ensure seamless delivery of items right to the customer’s doorstep upon making a successful sale.
How to grow the Drop Shipping business in Dubai?
The Drop Shipping Business in Dubai presents numerous growth opportunities. Leveraging online media channels can effectively promote the business. It is crucial to promote niche products through social media influencers.
To establish customer trust, offer reliable products from well-known brands on your website. Additionally, prioritize SEO practices and invest in digital marketing efforts. Continuously conduct market research to identify new products and trends.
To stay competitive in the market, regularly add new products to your website. By reducing shipping time and improving order fulfillment, the drop shipping business can attract more customers.
Why should I seek the Assistance of a Business Consultant?
To acquire an eCommerce License and secure an Office Space, there are several steps that need to be followed. With the guidance of professional Business Consultants like Pro Consultancy, investors can effortlessly establish and operate their drop shipping company in the UAE. This process ensures a seamless experience without any unnecessary complications.
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!