The E-commerce scene in the UAE is growing at a rapid pace, presenting a huge opportunity, which local and international entrepreneurs are actively benefiting from.
With Dubai’s world-class physical and digital infrastructure, the city offers entrepreneurs and start-ups a platform for ease of set up and scale. The city’s pro-business regulatory environment and global logistics power means entrepreneurs can go from licensing to launch, at pace and take advantage of the strong presence of incubators and accelerators, low taxation rates, young and diverse population, high spending power per capita and massive digital adoption rate.
So, what is dropshipping? Dropshipping is an order fulfillment method where a store doesn't keep the products it sells in stock. Essentially, the store usually purchases products from a third-party supplier and then ships them to customers who have made orders online. Dropshipping is a rising and promising business in Dubai for those that want to get into e-commerce. However, if you're going to get a smooth start and establish a stable business in dropshipping, you should clearly understand how to do it right. Here is everything you need to know about starting an online dropshipping business in Dubai.
Benefits of Dropshipping
Before we get into how you can start your online dropshipping business in Dubai, here are just some of the benefits of this business model:
Lower Capital Required
Brick and mortar stores require high capital to start and run, but dropshipping doesn't require investing thousands of dollars in inventory upfront. With the dropshipping model, the customer first pays for the products present in your online e-commerce store, so you don't have to purchase a product before making a sale. It essentially means that it's possible to start sourcing and launch a dropshipping business with a small amount of money.
Wide Selection of Products to Sell
In a dropshipping business, you're not limited to the kind of products you want to sell. The most important thing is to ensure that you have a supplier ready to supply the product once a customer makes an order. You have various products to choose from for this business, unlike traditional retail companies where you need to have the products already present at your store.
Easier to Scale
It is pretty easy to scale up a dropshipping business, unlike the brick-and-mortar business. For example, suppose your supplier introduces new products. In that case, you can list them in your store without making upfront payments, and this makes it possible to add a range of trending products to your online store and therefore reach a broader market segment.
Starting an Online Dropshipping Business
Here are practical tips to help you start and run a successful dropshipping business in Dubai:
Identify a Market and Choose a Niche
To efficiently start a dropshipping business, begin by identifying a target market and the kind of products you intend to sell to those customers. Some of your competitors sell similar products and use the same suppliers as you do. The main differentiator for your business will be how you market yourself. For practical marketing efforts, identify a target demographic and sell them products that meet their needs.
Build your eCommerce Website
Customers will always come into content with your offerings via a digital platform, making it paramount to set up an online store where customers can visit and make orders anytime and anywhere. Some outlets are available, such as Shopify, where you can set up your store for a small fee. However, you can build your independent website and use it to sell products.
Find the Right Supplier
Your suppliers are significant for the dropshipping business. Choosing a reliable supplier ensures that you and your customers will never be disappointed by failed deliveries. Therefore, take time to select suitable suppliers for all the products you intend to sell. Also, it is essential to determine the quality of products supplied.
Market Your Business
Like any other business, dropshipping requires effective and strategic marketing to attract customers to your store. Utilize marketing strategies such as SEO, content marketing, influencer marketing, and more to obtain a constant flow of customers while testing different marketing strategies to determine the one that best suits your business structure.
Set up your Online Dropshipping Business in Dubai
To engage in any trading activity in Dubai, you will require a trade license. At Sentinel Business Center, our professional and experienced team can help you set up your business in Dubai quickly so you can focus on the things that matter.
Contact us to learn more and get started.