Dropshipping in the UAE: Steps, license & requirements
Dropshipping in the UAE is one of the easiest ways for you to start your first business. Nowadays, this type of commercial investment is rapidly gaining popularity among new entrepreneurs due to its low cost. Also, it is relatively easy to establish and manage for several other reasons. In this article, you are going to find out everything you need to know about dropshipping in the UAE. We will take a look at some benefits this business model offers, in addition to how to choose the type that suits your expectations and financial possibilities. Let us answer the following questions: 1. Is dropshipping legal in the UAE? The dropshipping model is becoming increasingly popular around the globe. To align with this trend, there are more people who wish to establish a dropshipping business in the UAE each day. This is due to the fact that it requires minimal investment, being suitable for the smallest budgets. However, those aspiring to get started in this commercial activity commonly face the question: “Is dropshipping legal in the UAE?” The local government has made clear that they support small, mid-sized, and large businesses equally. With the new dropshipping license in the UAE, new entrepreneurs can legally pursue this lucrative business activity. Nonetheless, there is a set of steps to follow in order to obtain it. The good news is that, similar to many other businesses licensing procedures, the process is rather simple and fast in the UAE. For this reason, on Connect ME, we encourage you to begin a new chapter as a businessperson and open your own dropshipping store. 2. How can I get a dropshipping license in the UAE? As we previously mentioned, you require a license to perform this commercial activity under the law. The UAE Authority makes this possible through the issuance of an e Trader License dubai from the DED. The DED (or Department of Economic Development) is the body in charge of issuing a wide range of business licenses in the Emirates. You should also note that this legal entity regulates imports and exports in the country. For this reason, it is critical that you obtain your trading license as soon as you choose to follow the dropshipping business model. It is worth mentioning that there is no trading license specifically designed for dropshipping in the UAE. Instead, any UAE-based business selling products through their website or on social media will qualify within the e-Trader category. 3. What are the different types of dropshipping businesses in the UAE? If you wish to learn how to do dropshipping in the UAE, the first thing you should consider is the exact model you would like to implement. Knowing this will not only give you a clearer idea of what dropshipping is, but you will discover which models better adapt to your budget. Today, dropshipping in the UAE divides into four main categories. These are product reselling, business extensions, product creation and print-on-demand. Let us understand each of them in more detail: 3.1 Product reselling This is one of the most-frequently seen types of dropshipping in the Emirates. With product reselling, you can find different products from several sources and list them as available on your website. On Connect ME, we recommend this model to those who are excellent at marketing products. It can also be a great choice for those who are experts in the field of their choosing. The challenging aspect of product reselling is that it might require a higher capital to start. This is because the products you will be selling must be paid upfront. 3.2 Business extensions These offer dropshipping services to retailers without an online presence. Business extensions work as a middleman to promote the retailer’s product. Each time that you (the dropshipper) close a sale, you will ask the retailer to send the products to the buyer. However, this model may require greater effort compared to product reselling. The reason behind this is that you will need to establish a business relationship with a determined retailer. In other words, you must have a clear understanding of their products. The bright side of deciding for this type of dropshipping model is that it can turn more profitable given the current lack of competition. 3.3 Product creation With product creation, you will take several items and bundle them into one for purchase. Next, you will send the bundled product to your buyer after they complete a purchase. This model requires critical thinking, as you will be the one to select these products in a way that makes sense for your target clientele. Note that this involves shipping multiple items. If you create a bundled product from one single retailer, it could lead to various products being shipped simultaneously. 3.4 Print-on-demand In case you would rather run a business focused on t-shirts, mugs, or any other product with a picture or design printed on them, this is the right model for you. Print-on-demand allows creators to send their preferred design to the dropshipper. Then, when a sale takes place, the dropshipper will print it on the selected item and send it directly to the buyer. When pursuing this dropshipping business model, it is an advantage to be a great marketer. 4. Some advantages of starting a dropshipping business in the UAE Establishing a business in the UAE is today considered by investors an excellent idea. Regardless of the field you choose to invest in, this country’s economy is on the rise, and this reality is not changing in the near future. This is also true when it comes to dropshipping. If you never wondered how to start dropshipping in the UAE, right now is the moment to start learning everything about this business model. Here are the most significant advantages of dropshipping in the UAE: 4.1 Affordable costs While starting a business of almost any other nature can represent a huge expense, this is not the case with dropshipping. You will not be in charge of
