How to Start a Dropshipping Business in UAE?

The United Arab Emirates has one of the leading E-commerce markets in the world. Besides, it is constantly innovating new technologies to enhance this sector. So, if you are an aspiring entrepreneur, looking to capitalize on your business skills, then a Dropshipping Business in UAE is a good opportunity to start. However, there are a few things for you to be aware of regarding this business and its influencing aspects. Let's learn about them through this guide.

What is Dropshipping?

Dropshipping is an online business model where the vendor or seller does not hold any possession over the stock. Instead, they exhibit the products on their website. And when a customer places an order for a product, they ask the supplier or manufacturer of the product to ship it directly to the customer. In simple words, the owner of the dropshipping business is a middleman between the supplier and the customer.

Ideal features:-

• Low capital – It allows you to form an e-commerce store without spending lots of money on inventory.
• Scalability – Since the majority of order processing is handled by the supplier, the business can grow with lesser growth pains and incremental effort.
• Lesser overhead – The overhead costs are fairly cheap in this business because the owner does not have to worry about stocking a warehouse or handling inventory.
• Wide range of products – As an owner of dropshipping business, you can exhibit a wide selection of items for your potential customers.
• Easy to test – Before establishing a full-fledged business and making a large inventory purchase, you can put your business idea to the test by listing and possibly selling goods on a smaller level.
• Flexibility – This business provides you the flexibility to operate from any location, sell a range of items, and accordingly modify the selection as per customer preferences.

Different types of Dropshipping businesses in UAE

While considering a dropshipping business in the UAE, you need to think about what type of business model you would want to establish. So, here are some of the popular and most common dropshipping business ideas that you could use –

Product reselling – In this business model, vendors find products from various sources, and display them on their website or online platform for purchase. Individuals who have good marketing skills and are core experts in their field can opt for this business type.

Business extensions – This business model is ideal for those retailers or manufacturers who do not have an online presence. Therefore, the drop shipping service works as a middleman and promotes the products for the retailer. Once the product gets a buyer, the middleman asks the supplier to ship it directly to the customer.

This business model may require more effort compared to product reselling as the owner has to develop an intimate relationship with the retailer. You will need to study their business and get a good understanding of their products and services.

Product creation – In this business model, the company takes different products and packs/bundles them together as a single product, and markets it online for purchase. When the customer places an order, the supplier ships the bundled products to them. This business model requires unique and critical thinking regarding creating new products for sale. However, it has little competition in the market, making it a lucrative opportunity for dropshipping businesses.

Print-on-demand – This business model is for those creative minds who prefer to work with products that have text or images printed on them, such as t-shirts, mugs, etc. The company has to work with a creator who will send their text or image to the company in order to get it printed on the product. When the customer places the order for the product, the company prints the image/text on the product and ships it to the customer on behalf of the creator.

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Advantages and opportunities

An aspiring entrepreneur who has a good understanding and strong knowledge of market trends, consumer tastes, and the best e-commerce practices can establish a profitable dropshipping business in UAE. Besides, there are several advantages and opportunities one can avail of this business idea. For example,

1. Expanding digitalization
2. New Market
3. Location
4. Business-friendly culture
5. Good infrastructure

How to start a Dropshipping business in UAE?

The process of starting a drop shipping company in the UAE is straightforward. If you have a proper understanding of the functioning of this industry, then you can easily set up your company with these simple steps. Alternatively, you can also seek assistance from the business setup consultants at Shuraa who can guide you through the whole process.

• Choose a business idea

First and foremost, you need to find a niche for your business in UAE. For example, finding a high-demand product that is not being offered by many businesses, and selling them on your platform.

• Do research on potential competitors

Thorough market research is very important in order to identify your competitors, how much are they charging, what are their marketing techniques, and what is their USP. Further, compare your business aspects with other players in the industry for further improvement and growth.

• Choose a supplier

To start a dropshipping business, you need to find a reliable supplier. The supplier must be your strong support, be well aware of your business functioning, and also provide the kinds of products you want to sell. Hence, it is important to spend some time researching and identifying different suppliers and their products. For better insight, you can read reviews about their products and even interact with their sales team.

• Build your online store

Currently, many websites like Amazon, Flipkart, etc. conduct these services. You can either work with them or build your own website and sell directly through it. Many drop shippers use e-commerce store-building websites like Shopify to do the direct sale and make more money.

• Decide a business structure

UAE offers various options of business structure to choose from, such as sole proprietorship, LLC, General Partnership, etc.

• Manage your finances

To manage the finances of your business, you must regularly monitor the cash flow and ensure that you are putting the correct prices on the products.

• Promote your drop shipping store

To win more customers, you need to market more. There are several marketing tools you can use to promote your store, such as Search Engine Optimization (SEO), influencer marketing, Facebook ads, etc.

• Analyze and enhance your work

Last, but definitely not least, analyze the market constantly and make improvements accordingly. Seek and adopt new opportunities and trends for your business. You can also switch to a new niche if the existing product goes out of trend.

Launch your Dropshipping business in UAE

Follow the below steps to launch a dropshipping company in Dubai, UAE –

• Make an application for a license
• Specify the nature of the business
• Settle in for a company name and type
• Request for a business permit
• Make a visa application
• Establish the mode of selling, payment methods, and shipping facilities
• Find reliable suppliers in the area

Cost of setting up a Dropshipping Company in UAE

Basically, a drop shipping company does not require a huge investment or big starting capital. It is one of the most affordable business ideas that you can start in UAE with a limited budget. The major cost involved in this business is the cost of the trading license. However, it varies depending on the jurisdiction you choose to operate in.

Techniques to grow a Dropshipping business in Dubai

Once your dropshipping business in Dubai is in operation, you can follow a few practices to grow your business –

Discover new trends by regularly monitoring social media and websites

Collaborate with influencers to market the products

Invest in digital marketing and SEO to bring more customers

Gain customer confidence by offering unique services

Adapt new marketing techniques and products to stay ahead

Partner with Shuraa Business Setup and get expert advice and assistance in launching your dropshipping business in UAE. Visit their official website www.shuraa.com for more info.