The Middle East is becoming quite the hot spot for eCommerce, and Amazon knows it. While we already discussed the best practices for getting started on Amazon Turkey, international sellers can also consider expanding into Amazon UAE, or Amazon.ae, the global marketplace’s headquarters in the United Arab Emirates.
Like any other country, the UAE has its own particulars for eCommerce: what kinds of products sell best, how much do shoppers spend, and who the competition is, just to name a few. To save you the trouble, we thought it might help to collect everything you need to know into this guide to the Amazon UAE market. Below, we share advice for Amazon UAE sellers.
eCommerce in the United Arab Emirates
The last few years have been monumental for eCommerce in the UAE. With total recorded sales of $2.5 billion in 2014, online sales revenue increased 300% to $10 billion in 2018. That number is still on the rise.
One factor behind the success of UAE eCommerce is the high average spending budget of its shoppers. According to a 2019 Visa study (relayed through Wamda), the average online shopper spends $1,648 every year, with an average sales amount of $144! Growth through 2020 is projected to reach 29.6%, so those figures are bound to keep getting bigger.
Moreover, 63% of UAE internet users actively participate in online shopping. Considering that the total internet penetration rate for the entire country is 99%, that means almost two-thirds of the whole country’s population is comfortable shopping online.
If you're wondering what to sell on Amazon UAE, it's helpful to know what shoppers are buying. All UAE eCommerce sales can be broken down into four main categories:
Software (41%)
Electronics (28%)
Clothing (17%)
Fashion Accessories (14%)
We see a large chunk of sales devoted to software and electronics, so if you’re selling tech gadgets or digital products permitted on Amazon, an expansion to UAE is worth looking into.
In terms of shopping preferences, it’s worth noting that a whopping 43% of UAE shoppers cite cash on delivery as their top payment choice. To put that in perspective, in France and the UK, only 5% choose COD as their top choice. This mentality can hinder online sales and complicate returns, so keep it in mind before deciding to expand.
Why UAE eCommerce is a Ripe Market
So what’s the reason behind the UAE’s somewhat sudden upturn in eCommerce? If you're looking to sell on Amazon UAE, you'll be interested to know that experts cite a variety of factors working together to boost online sales:
Lots of Internet Users
As mentioned above, the UAE has a huge internet penetration rate, which naturally lends itself to eCommerce success. Moreover, the UAE also has one of the fastest-growing pools of mobile users, not to mention it ranks in the top ten for the amount of time spent online, with a daily average of 7 hours and 54 minutes.
Encouraging Government
The UAE’s predilection to online activities is no accident — the UAE government actively encourages it. In UAE Vision 2021, digital commerce was listed as a top government priority (along with cashless payments), and there are plenty of policies like a wage protection system to back it up.
Excellent Logistics and Distribution
The UAE has long been a strategic geographic location for trade, and that cultural history extends into modern-day eCommerce distribution. Not only does the country have top-notch infrastructure and low logistics costs, but it’s also home to the Port of Jebel Ali, a global transcontinental shipment hub, and the Dubai International Airport, the sixth-busiest cargo airport in the world.
Top eCommerce Sites in the UAE
Of course, the more profitable a market is, the more competition it attracts. If you plan on breaking into Amazon UAE, you have to know whom you’re up against. Not only are you competing with other Amazon sellers, but you’re also competing with other online marketplaces. And because most of these sellers have been doing business there for years, you may have a disadvantage as an outsider.
Your best bet is to research what eCommerce is really like in the UAE. Take a look at the top online marketplaces in the United Arab Emirates and see what kinds of products they offer, what sales and promotion strategies they use, and how they price their products. This can give you a decent head start if you decide to try it yourself.
Souq.com — Itself an Amazon company, Souq.com fills the country’s gap as the largest native online department store, selling everything from stationery to baby clothes.
Awok — Another, slightly less popular department store, Awok has similar offerings to Souq.com and Amazon.com.
Wadi — Once a widespread online marketplace, in 2019 Wadi shifted its focus exclusively to groceries and small supplies while prioritizing its shopping app over its online site.
Namshi — Namshi is the leading online retailer in the UAE for clothing and fashion, serving men, women, and children.
Desertcart — With one of the more modern-looking site designs, Desertcart sells all kinds of products, but focuses on the top-selling categories: electronics and apparel.
Sharaf DG — Another broad department store, Sharaf DG highlights their tech and large appliances over other products.
Also, be sure to check out Amazon.ae to see what the market looks like for your niche. There are several established online marketplaces in the UAE, but Amazon provides a great opportunity for sellers based in other locations who plan to expand to offer products in the country.
Getting Started on Amazon UAE
Getting started in a new international market is risky, so make sure you can carve a foothold when competing with domestic sellers. Research what kind of demand to expect for your particular line of products.
When it comes to getting reviews and feedback in a new marketplace, FeedbackFive can help. Trusted by sellers in over 100 countries, the tool makes it easy to request feedback and reviews while following Amazon's Communication Guidelines. You can schedule automation for the Request a Review messaging system or use traditional Buyer-Seller Messages to send requests to buyers with FeedbackFive.
Originally published on October 6, 2020, updated May 23, 2023
This post is accurate as of the date of publication. Some features and information may have changed due to product updates or Amazon policy changes.
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