A complete guide to dropshipping business in Dubai
Drop shipping is a prominent way to sell goods in the UAE. Moreover, it’s rapidly gaining popularity in the Middle East and GCC. Drop shipping is the process of selling goods online without holding inventory or stock. Rather, the merchant sells products and asks suppliers to ship goods directly to customers. Here, you have to market and sell goods. The manufacturers and suppliers will take care of the sourcing and product delivery.
Drop shipping owners work as a mediator in this business. As a mediator, it’s your job to find suitable products and potential customers to sell those products. You have to build a customer base. It’s essential to give awareness of the products and encourage them to spend money on them. Since it’s a cost-effective business setup idea in Dubai. The expense includes website development and obtaining a drop shipping license from the UAE government. It’s not necessary to have a warehouse or be concerned about the logistics. Thus, more and more entrepreneurs consider starting a drop shipping business in Dubai.
Steps to a successful drop shipping business in Dubai
Starting a dropshipping company is straightforward in Dubai. However, if you’re new to the UAE market, it’s obvious to face the challenges. Rather, hiring a business setup expert like Flybiz will help you overcome the challenges and get started soon.
Few ideas to start the drop shipping business,
Develop a business idea and select your niche
To create a business idea, identify the demand among customers. Based on the research ideas, create a niche, create a unique business plan, and make iterations on the customer feedback.
How will you choose the niche?
Initially, create a detailed list of business ideas. Use any analytics tools to analyze the popularity of each business idea. Research more on the chosen idea and opportunities. As a last step, explore the social media platforms to figure out the hashtag frequency. Also, find out the number of followers or content related to your business idea.
While considering UAE, clothes and fashion are the popular niches in e-commerce. Food and electronics are the other promising niches as well.
Go for a competitive analysis
After finding a business idea, identify the popularity of products among customers. Competitive analysis helps you figure out the competitors. Analyze how to make a difference in your business.
It’s better to start with high-demand products. It can boost your business right from the beginning. Later, you can sell more products in different niches.
In competitor analysis, find out their shortcomings and frame unique ideas in your business.
Conduct business and cost analysis
Before getting a license, analyze your project thoroughly
Business costs – estimate the expenses of running the business. So, you can explore the profit rate. Identify areas where you can cut costs.
Industry benchmarks – See how your business stacks up with the industry benchmarks.
Rearrange your business plan -Using the above insights, revise your business plan, set goals, and take well-informed decisions.
Select the suppliers
While running your business in UAE, find a perfect supplier. Choose a supplier from any corner of the world. Some of the ways to find your suppliers,
The trade show is a great choice to meet potential suppliers. Use this opportunity to meet suppliers and discuss their products.
Search through online directories like tradekey.com, alibaba.com, etc
Search through social media channels like LinkedIn, Facebook, etc.
Build eCommerce store
After fixing a reliable supplier, you can start building an e-commerce store. However, it’s possible to sell through noon.com or amazon.com. It’s better to create your website and sell directly.
Finalize a business structure
If you start a business in the UAE, you should choose from any business structure. An LLC or sole proprietorship company based on business requirements.
Monitor the cash flow
Once you start the dropshipping business, make sure to monitor the cash flow.
Market the store
Once you create a website, you need perfect marketing skills to reach your customers. Use social media marketing, search engine marketing, influencer marketing, and so on.
Improve on feedbacks
Continue to improve your business based on the feedback you receive from customers.
How to get a license for your drop shipping business in Dubai?
A license from the DED is essential to conduct your drop shipping business in Dubai. The UAE government doesn’t have a specific business activity but gets a relevant license to dropship legally.
DED or the Department of economic development is the regulator of the import or export of goods in the country. Therefore, to import or export a product, you need a trading license from DED.
The documents required to start your drop shipping business in Dubai
While applying for the license, you should submit a few critical documents. By providing valid documents, the authority will recognize the business owner. In case of any future disputes, you can seek legal support from the authority.
The documents are,
Shareholders passport copies
Shareholder’s proof ID and addresses
Trade name registration copy
MoA or Memorandum of agreement
Article of Association (AoA)
Other than the above listed, you may have to submit a few documents based on the business activity.
Why choose a drop shipping business in the UAE?
The drop shipping business has a lot of advantages in the country. It’s a lucrative business idea with minimum capital investment.
UAE has the highest internet penetration rate. After the pandemic, people prefer online shopping.
UAE is a profitable market for drop shipping. It’s easy to introduce new products and create demand for it.
The country has a strategic location. It’s well-connected to popular trade hubs and ports.
UAE has a friendly business environment providing a positive view on entrepreneurship.
Work with Flybiz business setup company in Dubai
If you wish to start a drop shipping business in Dubai, then consider the Flybiz business setup team. We have been supporting foreign nationals and UAE citizens to start their businesses in the Emirates.
Choosing the right business consultant will reduce your workload. Flybiz experts work as your dedicated team and guide throughout the company formation process.
To learn more about drop shipping, just ping us! We offer quick consultation and perfect assistance to start your business.