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How to start an Ecommerce Business in Dubai?

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The ecommerce sector is booming day by day, especially in Dubai. As the entire world is pacing towards complete digitization, the government of the UAE has launched the Dubai E-commerce strategy to make the best use of the opportunities that a virtual economy has to offer. Ecommerce web design Dubai can help your company prosper immensely during this digital era. Beginning an ecommerce business can elevate your income tremendously. With 60% of online buyers hailing from Dubai, the city has become the epitome of the eCommerce business. To encourage entrepreneurs to set up more ecommerce businesses, the government of Dubai has set up free trading zones. Companies in these zones are exempted from personal and corporate income tax.

Is Ecommerce web design in Dubai expensive?

The cost of opening such a business may range between AED 15,000-AED 50,000. The exact price will depend on your requirements. If you are a start-up with a strict budget choosing to open an ecommerce business in a free trade zone would be highly beneficial to you.

Guide to starting an ecommerce business

Designing and setting up an ecommerce website is relatively hassle-free. Setting up an ecommerce business is similar to setting up a conventional business. However, building an ecommerce business is more convenient since it can operate from a tiny apartment throughout its life without facing significant issues. 

Here’s how you can set up your own e-commerce business:

You need to research the e-commerce sector you are considering getting into comprehensively. You must clearly define what product or service you will sell. Decide if you will deal with physical goods like garments, devices, or virtual goods sold in the metaverse.

Researching the payment gateways in UAE is vital so you can choose the most efficient one for your business. It would be best if you also decided on return and refund policies; shipping services. Most importantly, figure out your budget after considering all the factors.

There’s cutthroat competition among ecommerce businesses. Everybody is trying to rise as the alpha of the ecommerce world. Find out who your competitors are and try to devise strategies to beat them in the long run. More importantly, learn from their mistakes and try to avoid them. 

Once you’re done figuring out your business’s objectives and purpose  it’s time for you to brainstorm a unique name for your company. After settling on a name, you’ll have to consult your lawyers and get it patented. Register this name with the concerned authorities in Dubai. Remember that the authorities in UAE have a list of certain types of names you can not choose, try to abide by it.

You will need to get a domain consisting of your company’s name. In case the domain name you are looking for already exists, you can either try to purchase it from the present owner or spice up the name a little.

Try to choose a location in the free trade zones to save some money. It is true that your office space need not be located in Dubai to conduct ecommerce business there. However, you require a registered address in Dubai to obtain a business license. You may buy or lease a space based on your convenience.

Anybody can set up and conduct an ecommerce business in Dubai as long as they abide by all the rules and regulations. Try getting all your licenses and permits in place. Typically an e-trade license may cost you about AED 1,024. You can ask certain professionals to do this on your behalf.

Until now, your business has just been existing on paper. It’s time to execute your plans by choosing an ecommerce platform to create your website. Your website represents your business just like a store represents an offline business. 

As mentioned earlier, you will have to purchase a domain name for your site. Along with this, you will have to subscribe to the services of an ecommerce platform like Shopify, woo-commerce, etc. These sites will also allow you to design and customize as per your requirements.

Ecommerce platforms do everything for you! They can help you set up your store while providing you with the services of a few prominent payment gateways in the UAE. If you are finding it hard to navigate through the entire website setup process, you can always hire a web developer to guide you through it.

After your website is set up, you’ll have to list the products sourced or developed on your site. Post pictures of the products you are selling and a description explaining the use and ingredients used to make the product. Let the description be short and crisply written in simple English.

Now that you have set up a website and listed the products and services you are offering, it’s time to market your website. There are several marketing techniques you can use to boost your popularity among consumers. Marketing your ecommerce business consists of social media marketing like hiring influencers, paid targeted ads on Instagram and Facebook, etc., but it isn’t restricted to it.

There are several SEO tools that you could employ to improve your reach. Once you begin to receive orders, you’ll need to keep track of the performance of your marketing strategies. Based on the performance review of the marketing strategies, you can choose to change techniques in the long run.

Things to keep in mind before setting up an ecommerce business

Here are a few tips that could help you in your ecommerce business journey:

Don’t spend too lavishly on web designing when you are just starting. Keep the website simple and fresh. Too many tacky customizations may take the focus off your products.

Lay out a simple business plan for the next five years and keep improvising it as time demands.

Use tools like google analytics to generate targeted traffic on your website. You can drive organic traffic on your website by uploading blogs and posts about your product. You can generate inorganic traffic via Facebook ads.

Facebook’s algorithm is such that only those interested in the type of products you sell will be able to view the ad. This ensures capturing the right audience for your website.

Most ecommerce business owners forget to treat their business as a brand. They lousily set up shops and list their products, failing to make a brand out of it. Their products might not be of good quality and may take forever to ship to the customers.

Try to find competent suppliers who can frequently provide you with products without delay. Also, find a reasonable shipping company that can handle all your goods with care and deliver them to the customers promptly.

Many ecommerce website owners focus too much on their product and ignore the needs of the customer. Taking constant feedback from your customers regarding the site and the website will help you improve your business. Knowing their taste will also help you create targeted marketing strategies.

You must have an efficient inventory management system to ensure the timely fulfillment of orders. Stock products in such a way that it is possible to maintain a balance between their demand and supply. Conduct research on the market trends and the sales figures of your products to restock your inventory accordingly.

Few ecommerce businesses are infamous for making fake promises like one-day delivery regardless of the location. Do not use such tactics to attract consumers. Let your policies be reasonable since the unfulfillment of the same will baffle the trust levels of the customers.

Just like any other business, your ecommerce website will require a lump sum amount of funds to remain afloat. Do not underestimate the cost required to run an e-business due to its virtual nature. Your initial investments must be able to cover your product sourcing/manufacturing costs, inventory management costs, etc. Investors, bank loans, or personal savings may come in handy to fund your ecommerce business.

Create a strong network of operational logistics to promptly fulfill your orders. The raw materials must reach your manufacturer on time, and the finished goods must reach your customers on time. You will have to decide on an efficient delivery system to make this happen. Outsourcing this can help you reduce your costs but doing it yourself will give you better control over it.

 

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