Are you a Middle East resident? Do you want to start your own ecommerce company in Middle East? Are there any obstacles that could prevent you from doing so? Today we will answer the most common questions regarding ecommerce in Middle East. So you can get started with dropshipping and start making money!
Ecommerce is in rapid growth and development. Statistics and studies show that the Middle East region is the most rapidly growing ecommerce market in the world. The region is not yet ready to be an ecommerce hub like the United States and European markets but it expects to see sufficient growth.
Dropshipping is a great way to get your business started. Dropshipping is a popular model that has many advantages. It offers the opportunity to start your own business anywhere in the world. This includes the Middle East!
Dropshipping in the Middle East has been gaining tremendous interest from Middle East residents, including those in Saudi Arabia, Qatar, the United Arab Emirates, Qatar and others. We have decided to clarify some important aspects of the process for creating and operating a dropshipping business in this region.
This article will discuss the basics of starting a business within the Middle East. We’ll also explain why it is worthwhile, how to dropship from your market and other business aspects that need extra attention.
Home Based Middle East Dropshipping
Dropshipping in the Middle East is the best home-based business model. It’s as simple as that. You’d likely see it as one huge opportunity if you had a business environment as rich and saturated as the United States, Canada, United Kingdom and most of Europe.
Imagine a tax system that is the most straightforward and easiest to manage in the world, according PwC. Don’t you see a perfect storm in the making?
The UAE (United Arab Emirates), a federation made up of Abu Dhabi and Dubai, Ajman and a few other emirates, celebrated its 45th anniversary of Union last year. It is one of the youngest countries in the Middle East, with an estimated population of 9.4 million and a large proportion of expatriates.
While the UAE is an oil-rich nation, it has a diverse economy that makes it a global center for trade, finance, and business. There are also other Middle East countries like Oman, Qatar and Saudi Arabia. They tend to follow the same guidelines for markets and that has been the case for quite some time.
So why all the history? And what does it have do with Dropshipping to the Middle East.
You don’t have to do business the traditional way in the Middle East if you are interested in starting a home-based business. Dropshipping in Middle East is a great opportunity for those who live there or are moving to the region. Here’s why:
“Anyone could do this” business, & low startup costs
Most people find it sensible to start a business with minimal capital investment when they’re just starting their businesses. Dropshipping is a great way to start an ecommerce shop, find suppliers and have them ship your products to you.
Dropshipping can be done by anyone. It is very affordable to start up and has minimal barriers to entry. This makes it a great ‘work at home’ opportunity.
Go Location Independent
Dropshipping is a different business model than traditional business setups in the Middle East.
Dropshipping allows you to live and work in the Middle East. You’d be able to charge your customers in dollars, pounds, euros, or any other currency that your target audience prefers. You’d be able to pay your customers in local currency, and you’d have less taxes than in other countries.
You have the option to open a new dropshipping business in the United States (with Stripe Atlas), or in Europe (Estonia) if you decide to set up your dropshipping business elsewhere.
Less hassle with compliance, legal, employment & laws
Dropshipping in Middle East – depending on your location, there are many laws and policies regarding compliance, legal, employment and other matters.
You’d get some additional benefits if your business is eligible to operate in one of the free trade zones of the Middle East.
Dropshipping is a great way to get rid of corporate compliance. You’d also be able to run your business entirely by yourself. You’re not the only one doing this, I’m sure.
You can always find freelancers or vendors to help you along the way. All you have to do is log in from your villa, Jumeirah apartment, home, or family home, with your kids. It’s really that easy!
General thoughts about legislation in the Middle East
Dropshipping is a business that you can easily start without any difficulties or high startup costs. You must comply with all laws and regulations in the country where you operate. It is especially important when you register your business.
Registering your business will protect your financial and personal assets in the event of any dispute with your clients. You might also be considered a fraud if your business doesn’t get recognized as an entity.
You can ignore business regulations. However, ignoring them could lead to your business being terminated or fined.
For a better understanding about the laws that you must comply with, please consult your local representatives.
Payment gateways
You will be selling products online and need to set up secure payment gateway options. Which payment method is most popular in this area? There are three payment options available in the Middle East: cash on delivery, credit card payment and cash on delivery. Cash on delivery is the preferred payment method for online orders, but it’s only 62%.
A license allows ecommerce businesses to open local bank accounts to receive payments. Middle Eastern ecommerce companies don’t have many options when it comes choosing a payment method.
AliDropship supports the following gateways:
- Paypal
- Tap (works only for countries located in the Middle East).
- 2Checkout
Shipping to the Middle East
Ecommerce in the Middle East can be difficult because of long shipping and delivery times. This could lead to a loss of many potential customers.
It is recommended that ecommerce entrepreneurs in this region work with local suppliers. Dropship business owners that cooperate with Chinese suppliers are especially at risk. Often, product delivery can take between 30 and 60 days.
This is a long wait and not everyone wants to wait. Unless the goods are unique and cannot be shipped elsewhere.
You can partner with AliExpress suppliers to avoid lengthy shipping times. This will allow you to reduce shipping time and ensure your customers are satisfied. This article will provide more information on how to find a supplier that stocks products in your area.
AliExpress Direct is another option.
This is a premium service that customers from the Middle East (specifically Saudi Arabia and UAE) can avail. The courier will deliver your order right to your doorstep. What are the shipping times? Your package will arrive in 7 to 15 working days. All your items will be placed together, even if they were ordered from different suppliers.
UAE customers can take advantage of this service by placing an order of $40 or more, which must include products that are eligible for AliExpress Direct. Saudi Arabia has a slightly higher limit of $50. Shipping will be free if you meet these conditions.
Standard AliExpress delivery can be made to countries such as Kuwait, Oman and other parts of the region.
Language localization
The website is an important aspect of any dropshipping online shop. Is it easy to use? Is it professional looking? Does it look modern and appealing visually?
These criteria must be met in order for potential customers not to click on your online store immediately.
It is important to have a site that is both readable and clean in Arabic and English. When creating a bilingual website, it is important to ensure that the font styles used in both languages match each other visually. When switching between the font styles, pages should look identical.
It all depends on the audience you’re trying to reach. You must ensure that your website is SEO-friendly if you want to attract customers from the local market. You will need to adjust your titles, meta descriptions, and alt texts. in Arabic. It is also recommended to have a country specific domain name.
To reach potential buyers, however, the website must be available in English.
Conclusion
Dropshipping is an ecommerce model that is simple to set up and requires minimal startup costs. Dropshipping is a great way to start a profitable ecommerce business and generate passive income.
While there are certain aspects you need to pay attention to when starting a Middle East business, the ultimate goal is too good not to pursue. Dropshipping is extremely popular now.
