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Sell on Amazon – UAE

The UAE E-Commerce market is rapidly growing and rising leader among GCC States. The global B2C (business to consumer) e-commerce spending topped $3.8 trillion in 2017.  The UAE’s e-commerce market was expected to hit $10 billion in 2018, a substantial increased from the 2014 value of $2.5 billion.

According to the Middle East B2C e-commerce market 2018 report, the combined e-commerce sales could reach $20 billion by 2020.

The UAE Ministry of Economy has estimated that e-commerce constitutes 10 percent of total sales in the UAE. Official sources indicate 90 percent of the UAE population has internet and/or a mobile phone which has played an active role in enabling the growth of e-commerce in the region.

Amazon.com acquired Souq.com, the largest domestic online merchant, in March 2017, giving the global operator a large share of sales in the UAE.

The product categories that produce the most revenue in online sales in the region are consumer electronics, computers, fashion accessories, women’s apparel, cosmetics and perfumers.  The most important factors for online shoppers in the UAE were price, customer service, and ease of use. The presentation below will highlight the UAE E-Commerce snapshot, various other channels emphasizing more on Souq.com and it’s process of operating – shipping, various costs and profit margin calculation.

Required Documentation & Resources Checklist

Value Added Tax

VAT was introduced in the UAE on 1 January 2018. The rate of VAT is 5 per cent. You can easily register for VAT by visiting https://www.tax.gov.ae/ 

For Step by Step Guide Click  Registration & De-registration of VAT

E-Mail ID

A primary E-mail ID must be provided by seller for exchanging all business information and uniquely identify the user/business.

Credit Card

A Credit Card is required by Amazon for charging any monthly fee payable by seller to Amazon, if applicable.

Bank Details

Bank Account details are required to ensure the remittance of the payment to the seller for the items sold, whenever required.

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