5 profitable of Ideas E-Commerce Services in UAE
Start a winning in E-Commerce Services in UAE with one of these ideas.
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1. Drop shipment
Drop shipment is an accessible ecommerce retail business model. It works well for the UAE given the high percentage of Emiratis who buy online. Euromonitor reported that one-third of UAE citizens purchased goods online at least once a week using their smartphone. This places the number of online shoppers above the global average.
How does drop shipment work?
Drop shipment only requires creating an ecommerce website (or selling on an online marketplace) and developing a marketing plan. Retail businesses normally need to purchase an inventory of stock, rent a warehouse for storage, develop a system to ship the goods, and spend money on packaging and staffing.
Drop shipment eliminates all this. Instead, the drop shipment supplier will store the goods in their warehouses, and pack and ship the orders you sell directly to your customers.
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Why is drop shipment profitable?
- Low start-up costs
- Low running costs
- Short time to set up
- Relatively low-risk business idea
- More time dedicated to marketing and advertising
- Not limited to your geographical location
- Easy to switch product niches
. E-commerce
E-commerce is the business of selling products or services online. Unlike drop shipment, it involves creating your own digital product or sourcing stock that you’re responsible for getting to your customers.
According to the UAE chambers of commerce, the UAE is a hotbed for online business. By 2026, UAE retail sales in ecommerce are expected to reach 12.6% of total market sales. Smaller companies also have excellent market opportunities. In 2021, local ecommerce websites made up 73% of total UAE retail sales.
type of E-commerce business
- Personalised gifts
- Gym clothing
- Sustainable products
- Online mentoring
- Luxury car rental
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- Many business opportunities to pursue
- The UAE has excellent logistics to deliver products
- Fast broadband speed and connectivity
3. Digital marketing
The UAE, especially Dubai, has accelerated digital adoption. McKensy reports that 99% of the UAE population had internet access in 2022. The same report found that more than 50% of Emirati consumers expect to increase digital spending. This means more business for online marketing and advertising agencies.
How does digital marketing work?
Digital marketing is the strategy and organisation of promoting a business or product online. Digital advertising is the purchase of paid adverts to publicise a business or product online.
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Why is digital marketing profitable?
- Online consumerism is increasing
- Most businesses want an online presence
- Dubai is a global business hub with a need for digital marketing
- Low-cost to set up
4. Event management
The value of the events market in the Middle East and Africa is set to grow from USD 54 billion in 2022 to USD 77 billion in 2028, according to data from the insight partners. Dubai hosts major events such as the Dubai Desert Classic (European golf tournament), Dubai International Jazz Festival, Dubai Food Festival, GITEX (global tech show), and Dubai Design Week.
types of event management are there?
- Corporate: exhibitions, conferences, meetings
- Private: weddings, birthdays, parties
- Sports: triathlons, marathons, cycling
- Education: university open days, career fairs
- Entertainment: music concerts, festivals, art
event management work:
Event management businesses organise events by sourcing a venue, finding suppliers, and handling logistics. Due to the grand scale of events in the UAE and demand in the market, event management is an attractive business idea.
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Why set up an events company in the UAE?
- Private and corporate clients usually have higher budgets
- Low start-up costs as a wedding planner or venue-finder
- A multitude of high-quality photographers, caterers, decorators, hotels, and other suppliers are available
5. Tour group planner
Travel and tourism is a big market in the UAE. statista projects revenue in this industry will reach USD 1,285 million in 2023 with an annual growth rate of 5.12% until 2027. Additionally, an arabian business article cited that tourism spending in 2022 increased by 70%. Hotels, package holidays, and holiday rentals make the most revenue.
What are some tourism business ideas for the UAE?
- Corporate team building
- Travel agency
- Water sports rental company
- Desert glamping company
set up of tourism business in the UAE
- World-class hotels and holiday rentals
- Beautiful beaches, desert dunes, and hot temperatures
- A fusion of Middle Eastern culture and international influence
Why you should start a Drop shipment business in the UAE?
Golden dunes, rich oil wealth, and the tallest tower in the world, the Burj Khalifa, are famous icons of the United Arab Emirates (UAE). Besides an impressive number of tourists each year – 22 million in 2019 alone, according to World Data – the UAE is sprinting ahead as a global business and logistics hub.
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Country information
Founded in 1971, the UAE is a federation of seven states, Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah, and Umm Al Quwain. It is situated in the south of the Persian Gulf, neighbouring Oman and Saudi Arabia. The capital is Abu Dhabi but the largest city is Dubai.
Statistics from the International Monetary Fund in 2021 cite the UAE as the sixth wealthiest country in the world. The country’s wealth is heavily reliant on petroleum and gas, as it holds the seventh-largest oil reserves globally.
The wholesale and retail trade industry is the biggest source of the UAE’s revenue after oil and gas. In 2020, it made up 13.6% of the GDP, says Statista.
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Drop shipment in the UAE
Now that we know some background about this Western Asian country, let’s get down to business. We have established that the UAE is a wealthy country so it’s time to see some data about e-commerce. Here’s a snapshot of the drop shipment benefits in the UAE:
- Highest purchase and use of smartphones in the Middle East and North Africa
- UAE central bank expects the economy to grow 4.2% in 2022
- Pet care, furnishings, and household equipment could be promising retail opportunities online
- Excellent logistics infrastructure throughout the country
- No corporate tax and no personal income tax
Booming e-commerce market
Like many countries across the world, the UAE has experienced accelerated growth in the e-commerce market as a result of Covid-19.
The forecasted value of UAE e-commerce sales in 2022 is $27 billion USD, as reported by Statista. Growth in this sector was by an average of 23% each year, 2018-2022.
The World Bank reported that 100% of the 9.89 million population of the UAE were using the internet in 2020. This makes it the most digital-friendly country in the Middle East and an e-commerce opportunity with huge potential.
According to Euromonitor, during the Coronavirus pandemic 2019-2020, these were the e-commerce products with the most sales:
- Electronic products (triple-digit growth rates)
- Beauty and personal care, pet care, and apparel and footwear (more than 50% growth rates)
Products expected to have the highest sales:
- Personal accessories and eyewear (predicted CAGR of 20% from 2020 to 2025)
- Media products, pet care, and home care products
High use of smartphones
The Government of UAE Media Office reported that the UAE has the highest smartphone penetration rate in the Middle East and North Africa. This has led to an increase in people shopping on their phones.
In 2015, the ratio of phone shoppers made up 29% of the overall e-commerce sales. As the internet becomes ever-entwined into our lives, this percentage rose to 42% in 2020.
That’s a retail market value of $1.6 billion USD. An impressive 56% higher than in 2019. By 2025, analysts predict the value of the mobile e-commerce sector will reach $3.9 billion USD 2025 (growing with a CAGR of 18.9% from 2020 to 2025).
Further information from Global Media Insight tells us that smartphones in the UAE accounted for over 60% of internet users in 2021, with only 37% using a desktop.
Around 9.75 million people in the UAE have a smartphone – that’s 97.6% of the population. With such a high number of smartphone users in a wealthy country, there is a lot of potential for new e-commerce and drop shipment businesses.
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Impressive logistics
The UAE is strategically located between Asia and Europe, making it ideal as a transport hub between the East and the West. The three largest cities, Abu Dhabi, Dubai, and Al Sharja are on the coast to easily profit from sea freight links in the Persian Gulf.
Dubai International Airport has retained its title as the world’s busiest airport. In December 2021, the airport seated almost one million more passengers than the second-busiest airport, London Heathrow.
According to PR Newswire, the UAE’s logistics market should generate over $30 billion USD by 2025.
Over the last decade, the country’s government has invested heavily in the transport network. Most recently, a $13.6 billion USD railways programme has been launched to improve connections between the key centres of trade.
An excellent logistics network means products can be delivered to customers promptly. This is a key insight when considering a drop shipment venture.
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Overall economy
Despite the downturn in oil prices during Coronavirus, these are bouncing back and the UAE’s economy is expected to have a 4.2% increase in 2022, says Reuters. This is the fastest increase the country has experienced since 2015.
Taking this into account along with the attractive tax system, dropshipping in this country appears to be a worthwhile investment. A huge draw for starting E-Commerce Services in UAE is that there is no personal income tax. There are also tax-free business areas known as “free zones.”
Check these two resources for tax information:
- Expatica: Guide to the tax system in the UAE
- UAE Government website
Summary
Hopefully, this article gives you some useful insight into the possibilities for e-commerce in the UAE. The articles we have gathered point to some market opportunities worth investigating.
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9 most-popular E-commerce stores in the UAE in 2023
Have you ever wondered which Ecommerce stores in the UAE are the most popular? This list compiles 10 of the most-visited online retailers, according to Similar Web statistics in March 2023.
1. Groupon.ae
This American-born company is a hit in the UAE for local discounts across travel, goods, and services.
| Global rank | #106,023 |
| Country rank | #418 in UAE |
| Category rank | #1 (Ecommerce & Shopping > Coupons) |
| Monthly visits | 446,000 |
| Share of visitors | 82% UAE 3% India 3% Ukraine |
| Annual revenue | $1 billion |
2. Lookfantastic.ae
Lookfantastic is a globally renowned British brand. Customers enjoy quick delivery of skincare, makeup, and hair care products.
| Global rank | #137,264 |
| Country rank | #840 in UAE |
| Category rank | #5 in UAE (Lifestyle > Beauty & Cosmetics) |
| Monthly visits | 338,300 |
| Share of visitors | 68% UAE 15% Saudi Arabia 7% Bahrain |
| Annual revenue | $100-200 million |
3. Sephora.ae
A multinational retailer, Sephora is a French company that specialise in personal care and beauty products.
| Global rank | #71,702 |
| Country rank | #282 in UAE |
| Category rank | #2 in UAE (Lifestyle > Beauty & Cosmetics) |
| Monthly visits | 716,500 |
| Share of visitors | 81% UAE 4% USA 2% Qatar |
| Annual revenue | $1 billion |
4. Fruugo.ae
Founded in the UK, Fruugo is a global online marketplace that sells millions of products.
| Global rank | #185,368 |
| Country rank | #779 in UAE |
| Category rank | #18 in UAE (Ecommerce & Shopping > Marketplace) |
| Monthly visits | 311,400 |
| Share of visitors | 92% UAE 2% USA 2% Turkey |
| Annual revenue | $10-15 million |
5. Sharafdg.com
An Emirati online retailer specialising in electronic goods.
| Global rank | #24,041 |
| Country rank | #121 in UAE |
| Category rank | #3 in UAE (Computers, Electronics & Technology > Consumer Electronics) |
| Monthly visits | 2.6 million |
| Share of visitors | 49% UAE 13% Oman 9% India |
| Annual revenue | $200-500 million |
6. Desertcart.ae
Desertcart is an international online retailer based in UAE. They sell electronics, kitchenware, books, and clothing with priority delivery to the Middle East and North Africa region.
| Global rank | #79,652 |
| Country rank | #316 in UAE |
| Category rank | #12 in UAE (Ecommerce & Shopping > Marketplace) |
| Monthly visits | 835,100 |
| Share of visitors | 81% UAE 5% USA 2% Seychelles |
| Annual revenue | $2-5 million |
7. Carrefouruae.com
French group, Carrefour, is a global retailer that operates through supermarkets and online platform.
| Global rank | #26,299 |
| Country rank | #73 in UAE |
| Category rank | #5 (Ecommerce & Shopping > Marketplace) |
| Monthly visits | 2.1 million |
| Share of visitors | 78% UAE 4% India 2% Pakistan |
| Annual revenue | $1 billion |
8. Apple.com
The famous American creator of the iPhone and MacBook, Apple is a popular brand in the UAE.
| Global rank | #89 |
| Country rank | #73 in USA |
| Category rank | #1 in UAE (Computers, Electronics & Technology > Consumer Electronics) |
| Monthly visits | 449 million |
| Share of visitors | 32% USA 6% Japan <1% UAE |
| Annual revenue | $1 billion |
9. Whizz.ae
UAE-based Whizz is an online shopping marketplace for fashion, electronics, sportswear, and beauty items.
| Global rank | #391,748 |
| Country rank | #4,333 in UAE |
| Category rank | #52 in UAE (Ecommerce & Shopping > Marketplace) |
| Monthly visits | 146,900 |
| Share of visitors | 50% UAE 15% Seychelles 8% USA |
| Annual revenue | $2-5 million |
Start E-commerce store with Nexusbees
Take a share of the UAE ecommerce market. Dutch-born Nexusbees is an international online giant that offers an attractive drop shipment programme, Nexusbees. To access more than 99,000 high quality products, 24/7 business support, and no cancellation fees, sign up to Nexusbees.
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FAQs
1. How can E-Commrce Services in UAE help my business?
A social media marketing agency manages a business’s social media. They plan, create, and share content using tools and techniques that save you time and result in more returns. The agency will focus on reaching your audience in Dubai and beyond, building connections with them and showcasing the best of your brand.
2. Why is E-Commerce important?
Social media has proven to be one of the most important elements of digital marketing. It provides businesses with a great platform for marketing and sales. By engaging with your audience through social media, you can reach your audience directly and interact with them, building online communities in the process.
3. What should I look for in E-Commerce Services in UAE?
There are a number of factors to consider when looking for a media company. Verify that the company is professional and distinguished. They should be able to understand their clients deeply and work with them as partners. Be sure that they can demonstrate their experience and have the necessary tools to create standout campaigns and manage your social media efficiently.
4. What do E-Commerce Services in UAE include tell packages?
E-Commerce Services in UAE should cover all of your business’s needs, from strategy and conceptualisation to content creation, delivery, and community management. The campaigns and posts should represent a clear brand identity. Other social media services include target market research, optimisation, content calendar planning, and reporting.
5. How will E-Commerce Services in UAE benefit my business?
Advertising on E-Commerce offers businesses highly effective ways of reaching their audiences with precise targeting. It is flexible, affordable, and dynamic. It is one of the best avenues for advertising online. It can benefit your business in many ways, from growing your online community to generating traffic and closing deals.