In this week’s blog, we go over the benefits and opportunities for Amazon sellers who plan to sell to UAE customers. We go through the advantages of selling on Amazon UAE, which covers Bahrain, the Kingdom of Saudi Arabia, Kuwait, Oman, and Qatar. We’ll also talk about the importance of localization when selling on amazon.ae.

Let’s dive in – it’s time to start selling on Amazon UAE, and here’s how!

Sell on Amazon UAE: Untapped Market Potential

The landscape of eCommerce in Amazon Middle East and the UAE is buzzing with potential.

Let’s talk numbers. In 2023, Amazon inaugurated a new Amazon fulfillment center in Dubai, located within the Dubai South development. This facility expands Amazon’s operational capacity in the UAE by 70%, reinforcing the logistics sector in the Emirates. The state-of-the-art hub spans nearly 60,000 cubic meters, and features advanced technology spread across 32,500 square meters across five floors. Situated within Dubai South’s Logistics District, the center benefits from seamless access to Jebel Ali Port and Al Maktoum International Airport. This move underscores Amazon’s commitment to the UAE, aligning with its significant investments in logistics infrastructure and technology in recent years.

Additionally, Amazon is fostering innovation and economic growth in the region through initiatives such as the AWS Cloud Innovation Centre and the D33 program, aimed at supporting local businesses. The new Dubai South fulfillment center not only promotes diversity and inclusion but also contributes to talent development and career opportunities in the UAE. Furthermore, Amazon’s expansion efforts extend beyond the UAE, with investments in talent development programs in Saudi Arabia. Dubai South, in parallel, is enhancing its Logistics District with cutting-edge technologies to facilitate efficient services, positioning itself as a hub for future transportation solutions.

In other words, logistics are primed for your entry. Deliver your products with confidence, knowing this sort of infrastructure exists.

The United Arab Emirates’ ecommerce industry is expected to continue rapid growth over the next few years – supported, of course, by high internet and mobile internet penetration rates, and a strong infrastructure and logistics network. In addition to the Dubai Logistics City, the government has begun Dubai CommerCity, which offers a free trade zone for e-Commerce projects.

According to Statista, leading eCommerce segments in 2023 included toys, DIY, and hobbies, leading at 29%, followed by fashion at 27%, electronics and media at 18%, food and personal care at 13%, and furniture and appliances at 12%.

In 2022, Helium 10 reported that there were 25,000 sellers on Amazon UAE, with a population of 10 million – consider that 20% of the UAE population have adapted online shopping as a lifestyle, according to Zawya. That’s a jump from 4.5 million people in 2019 to 6.5 million people in 2023.

Let’s compare that to Amazon USA – according to AMZScout, there are 1.1 million sellers who are from the USA, with more than 230 million customers.

Put it this way. In the UAE, there are 260 customers per seller. In the US, there are around 209 customers per seller. You have more customers per seller in the UAE – and less competition, too.

Access to the Growing Customer Base of Amazon United Arab Emirates

Selling in Amazon UAE gives you access to a diverse and expanding customer base in the UAE and its surrounding regions. The Middle East, with its flourishing economies and increasing internet penetration, boasts a consumer demographic characterized by diversity and affluence.

Diving deeper, tapping into this new demographic of affluent consumers with disposable income offers distinct advantages for Amazon sellers. The UAE is home to a discerning customer base. These consumers, eager for quality products and seamless shopping experiences, present a lucrative market ripe for exploration. Moreover, the Middle Eastern market offers a unique blend of traditional values and modern preferences, providing sellers with the chance to cater to a variety of tastes and preferences.

What does this mean for Amazon sellers? Well, the potential for increased sales and revenue is undeniable. By strategically targeting the Middle Eastern market through platforms like Amazon.ae, sellers can capitalize on the growing demand for a wide range of products. Whether it’s electronics, fashion, beauty, or household essentials, there’s a considerable appetite waiting to be satisfied.

In essence, start selling on Amazon.ae – there’s incredible potential waiting to be filled. By understanding the diverse consumer base, leveraging their disposable income, and recognizing the potential for growth, sellers can position themselves for success in this dynamic and promising market.

Since Amazon acquired Souq.com in 2017, and rebranded as Amazon.ae in 2019, online shopping platforms come a distant second to Amazon. The Amazon UAE seller has quite a lot to gain.

Sell on Amazon UAE with Competitive Advantage and Market Positioning

But what about the competition? It would be unadvisable to start selling on Amazon UAE without considering who else could give you a run for your money. Let’s delve into the dynamics of the marketplace, underscore Amazon’s commanding presence, and illuminate strategies for sellers to carve out their niche and thrive in this bustling landscape.

Firstly, let’s survey the competitive landscape on Amazon.ae vis-à-vis other regional e-commerce platforms. While platforms like noon.com and desertcart.ae may pose competition, Amazon’s global stature and expansive reach afford it a distinct advantage. With its vast product selection, seamless user experience, and robust logistics infrastructure, Amazon holds sway as the dominant force in the UAE market.

The UAE in particular tends to favor home-grown products, which may give a seller pause, but think about it a second. When you ally yourself with a behemoth like Amazon, you take advantage of its global stature and expansive reach, putting you in a distinct advantage. With its vast product selection, seamless user experience, and robust logistics infrastructure, Amazon holds sway as the dominant force in the UAE market. Sure, the other players have been providing UAE-specific products to the customers for years now, but the reputation of Amazon can’t be beat.

In the UAE, sellers do not typically receive free trade privileges. However, the country offers various free zones that provide incentives and benefits for businesses, including exemptions from certain taxes and customs duties, as well as simplified business setup processes. These free zones are designed to attract foreign investment and promote economic growth by offering favorable conditions for businesses to operate. Additionally, specific trade agreements and arrangements may exist between the UAE and other countries, providing preferential treatment for certain goods or services. It’s worth looking into, for sure. Maybe the free zone e-commerce areas can boost your online selling in the UAE.

Moreover, sellers can harness the power of data analytics to identify emerging trends, anticipate consumer needs, and fine-tune their offerings accordingly. By staying attuned to market dynamics and responding swiftly to evolving consumer preferences, sellers can position themselves as frontrunners in the race for market share.

Cultural Sensitivity and Localization: Sell on Amazon UAE the Right Way

Consumers from the UAE ranked 6th in 2023 as the country that favors products made in their country. According to a study by YouGov, 66% of consumers are more likely to buy if they know the company is based in the UAE; 57% believe in the superiority of local products over internationally-made products; and 67% believe it’s their patriotic duty to buy products made in the UAE when the opportunity arises.

Istizada released a fantastic paper on ways to increase Arab sales online. Here are some of the best ways to make waves with your online store in the UAE:

1. Collectivism and Family Importance: Arabs value loyalty and commitment to their family and tribe. Marketing strategies should emphasize community and family, respect for tradition, and honoring authority figures and the elderly.
2. Relationship Building: Building relationships is crucial in Arab culture. Marketing efforts should focus on email marketing, social media engagement, webinars, and live chat support to establish trust and rapport with customers.
3. Language Importance: Arabic is a powerful language in Arab countries, and catering to Arabic-speaking audiences is essential for successful marketing. Localization of content is crucial, as many Arabs prefer to engage with content presented in their own language.
4. Diversity within Arab Culture: Arab culture varies significantly across different nations. While there are commonalities, it’s essential to understand and respect the differences when tailoring marketing messages.
5. Luxury and Status Symbolism: Luxury brands thrive in the Arab market due to the culture’s focus on honor and respect. Companies can capitalize on this by emphasizing luxury products, using imagery that conveys luxury, crafting compelling copy, and associating their brand with status symbols.
6. Uncertainty Avoidance: Arab culture tends to have a high uncertainty avoidance. To address this, websites should prioritize clarity, simplicity, and trustworthiness in design and communication, including clear language, straightforward checkout processes, transparent policies, and trust symbols.

In addition, the International Trade Administration recommends prompt delivery and qualified support technicians. In fact, many government agencies require equipment suppliers to provide after-sales service for around 3 years after the sale. Also, note that Saudi buyers often compare prices before making a purchasing decision.

It bears repeating – Saudi customers are affluent. Saudi is the 18th largest economy in the world by GDP and in the top 20 richest countries by spending power, according to Amazon.

So, although Amazon UAE is one of the many English-speaking eCommerce sites worldwide, if you’re selling items with Arabic in your infographics and packaging, you’re likely to make a larger impact.

It’s also important to consider Arabic customs and culture. Tailor your Amazon brand promotions to important days in their calendar, like Eid’l Fitr, Singles Day, and “White Friday,” the Middle East’s answer to Black Friday. It’s a great opportunity to sell your products to a heretofore untapped demographic

Thankfully, YLT Translations can handle Arabic translations and localization for you. Remember, the keywords that you used in the USA will be different from the keywords on your UAE Amazon listing. So be sure that your list your products with the correct keywords, so those affluent customers can find you.

Potential Challenges and Mitigation Strategies When You Sell on Amazon UAE

Sell on Amazon UAE Using Amazon FBA

Setting up a business on Amazon.ae involves several steps, including registration, obtaining necessary licenses, and listing products. Here’s a general overview of how to put up an Amazon.ae business:

1. Registration
   1. Visit the Amazon Seller Central website specific to the UAE (https://services.amazon.ae/)
   2. Click on the “Start Selling” button to begin the registration process.
   3. Follow the on-screen instructions to create a new seller central account or sign in if you already have one.
   4. Provide the required business information, including your business name, address, and contact details.
2. Verification and Documentation:
   1. As part of the registration process, you’ll need to verify your identity and provide necessary documentation.
   2. This may include proof of identity, business registration documents, tax information, and bank account details.
      1. Keep in mind you might need a corporate bank account based in the UAE and a business license. This is for receiving payments, paying Amazon fees, and managing finances related to your Amazon UAE business.
3. Product Listing:
   1. Once your Amazon UAE seller account is set up and verified, you can start listing your products on Amazon.ae.
   2. Create high-quality product listings with clear descriptions, images, and pricing information.
   3. Ensure that your products comply with Amazon’s policies and guidelines.
   4. Make sure your keywords are specific to Amazon in the UAE, and don’t make the mistake of using the same keywords you used for the USA or Europe.
4. Inventory Management and Sales:
   1. Manage your inventory effectively to ensure timely fulfillment of orders.
   2. Monitor your sales performance and adjust your strategies accordingly to optimize your business on Amazon.ae.

Thankfully, you can use FBA (fulfillment by Amazon) when you sell in amazon.ae. Free Zone products are products that are fulfilled by Amazon, and sold by a marketplace seller, but shipped to you from an Amazon Fulfillment Center. All Amazon standard shipping rates and policies apply to these items when shipped domestically. Your customers can expect free shipping on qualifying orders above 100 AED and Prime Shipping. Cash on Delivery is not accepted as payment for Free Zone products. Amazon has 3 fulfillment centers, 3 sort centers, 8 delivery stations, and several small to medium businesses working as delivery partners.

Conclusion: Start Selling on Amazon UAE!

In conclusion, venturing into the Amazon UAE marketplace in 2024 presents an exciting opportunity for sellers to tap into a rapidly growing and affluent consumer base. With Amazon.ae’s global rank on the rise and the UAE’s thriving e-commerce landscape, the time is ripe for savvy sellers to explore this lucrative market.

The landscape of e-commerce in the UAE is buzzing with potential, supported by significant investments in logistics infrastructure and technology. Amazon’s commitment to the region is evident through initiatives like the new fulfillment center in Dubai South, fostering innovation and economic growth. The UAE’s strategic location and robust logistics network make it an ideal hub for sellers aiming to reach customers not only in the UAE but also across the Middle East.

Selling on Amazon.ae provides access to a diverse and expanding customer base characterized by affluence and a penchant for quality products. By understanding the local market dynamics and tailoring their offerings accordingly, sellers can capitalize on the growing demand across various product categories.

While challenges such as language barriers and regulatory requirements may arise, proactive planning and leveraging professional assistance can help sellers overcome these hurdles effectively. By investing in multilingual support, compliance assistance, and localization strategies, sellers can enhance their market positioning and navigate the expansion process with confidence.

Ultimately, selling on Amazon UAE using services like Fulfillment by Amazon (FBA) offers sellers a streamlined approach to reach customers and manage inventory. With the right strategy and execution, sellers can establish a strong presence on Amazon.ae and unlock the full potential of the Middle Eastern market. So, seize the opportunity and embark on your journey to success in the thriving e-commerce landscape of the UAE!

We can help localize your keywords to the UAE marketplace! Get in touch with YLT Translations and make sure your product listings are primed for your UAE customers.

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Amazon Jobs encourages applicants for positions in Egypt, Jordan, Morocco, Saudi Arabia, and the United Arab Emirates, evidence of Amazon’s aggressive movement to expand in the Middle Eastern region. In fact, Amazon has been present in UAE for 5 years, in the Kingdom of Saudi Arabia since June 2020, and Amazon Egypt was launched last September 2021. It all began in 2017 with Amazon’s acquisition of souq.com. Advertising began in 2000, and Amazon began quietly

But why the interest in the Middle East? It’s time to take a closer look at eCommerce in the Middle East, and the opportunities that abound for Amazon sellers.

The Background

Let’s consider the economics. The Kingdom of Saudi Arabia is the 18th largest economy of the world, and is the world’s largest oil exporter. Its GDP represents 0.82% of the world’s total. Nevertheless, KSA is not the richest economy in the Middle East – that award goes to Qatar and Kuwait. Qatar boasts the highest GDP per capita of $129,700, registering a record-breaking growth of 1,156% in the 1970s. Kuwait meanwhile has a GDP per capita of $71,300, the 10th highest in the world. The Kuwaiti dinar is the highest-valued unit of currency in the world.

And what of Dubai, whose Crown Prince Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum heads up plans to increase the e-Commerce portfolio by drawing foreign investments to the sector. The eventual goal is to establish Dubai as a leader in global e-Commerce. In fact, as of 3Q2020, data shows that 64% of Dubai-based shoppers spend more than US$27 per purchase. Considering 26% of people shop online every week, the assumption is the a quarter of the total e-Commerce shoppers spends around US$1,300 per year – that’s close to how much Prime members in the US spend (US$1,400 per year). There are plans for CommerCity, Dubai’s first free zone for eCommerce businesses.

The bottom line is, there is so much potential in the MENA region; the question is, how will it be harvested?

The Competition

Amazon acquired Souq.com in 2017, heralding its entry, but that’s not to say that the juggernaut can expect an instant monopoly. Noon.com was launched in the UAE in 2017, following an aggressive expansion plan to Saudi Arabia and Egypt a few months thereafter. The platform is backed by billionaire and Emirati businessman Mohamed Alabbar and KSA’s sovereign Public Investment Fund. Alabbar is protective over the region; he has been quoted as saying, “In the region, we have a duty. We need to protect our region, we cannot let giant entities internationally to take over our market. The Middle East market of 400-million plus people without a big technology ecommerce company is not fair … We have a duty to society and businesses.” In fact, Alabbar has even lobbied for a mandatory 51% local ownership for eCommerce companies operating in the country.

Although Amazon currently holds the lion’s share of the market, Noon.com is catching up. Amazon.sa enjoys 64% of shoppers regularly transacting online, followed by Noon.com with 59.7%, and Jarir at 45%.

The Customers

Arabs love malls – and Alabbar himself pegs a 3-4% economic growth for traditional retail, meaning the traditional retail sector continues to slug along quite faithfully – but this growth is shadowed by the widespread adoption of e-Commerce.

Analysts believe that widespread internet penetration has helped in the adoption of e-Commerce. In the Gulf states, more than half of the population is between 15 and 25 years old – a very tech-savvy generation that’s changing consumer trends. Naturally, the positive sentiment for e-Commerce comes on the heels of the pandemic – there was a huge shift towards e-commerce, like in every country worldwide that was lagging behind.

Data shows that KSA customers prefer electronics, followed by clothing and beauty. Dubai customers meanwhile shop for electronics too, followed by groceries. Other popular categories include furniture, toys, games, sports, and wellness products. Furthermore, Arabs are fond of luxury and brands – in fact, the Saudis can be quite ostentatious about showing off their wealth, and being able to splurge in this way is a core value for the uber-wealthy. Name brands and luxury goods do quite well in MENA. Combine this with Alabbar’s nationalistic directives, and it’s no wonder that Noon.com is giving Amazon.ae stiff competition.

They’re a unique people with very specific tastes; any seller would need to understand the people very carefully before planning to penetrate this high-potential market. Istizada notes that the Arab shopper is:

1. Brand conscious
2. Influenced by their own friends
3. Keen to find status symbols
4. Happy to spend on seemingly impractical commodities
5. Conservative when buying without the traditional retail experience
6. Prone to returns
7. Likely to debate a purchase over a long time
8. Very keen about fashion
9. Likely to buy something that enforces a positive image
10. Fond of bargaining
11. Eager to bring honor to the family
12. Highly religious
13. Eager to purchase in Arabic
14. Less than 30 – but the older set has higher purchasing power

Better make sure that garlic press handle is gold-plated. People in general do have higher purchasing power compared to the EU, but are still very price sensitive.

Miona Jaric, a professional working in the MENA region, notes: “Arabs love comfort. Due to the high service quality of e-Commerce, quick delivery, easy return/exchange options Arabs are lately massively shopping online (courier is delivering package to your doorstep, and picking up package in case of return/exchange – unlike e.g. Europe where you have to visit the nearest post office to return your package).”

Remember the top priorities:

• Arabs are likely to buy luxury goods that elevate their status in the eyes of their peers
• They value ease of transaction – returns, customer service, and listings written in their language

The Localization Directives

First, consider that many Arabs prefer cashless transactions, though a subset of the population tends to be conservative and prefers to touch items before committing. They will still choose cash on delivery, and return the item right away if the listing and the item itself do not match in terms of luxury, prestige, and quality. Beware false advertising, Amazon Sellers; make sure your photographs and copywriting accurately depict the product you’re selling, lest your return rate goes through the roof.

Naturally, your keywords and copywriting will be in Arabic. Amazon.ae is in both English and Arabic (and traffic is heavy on English pages), whereas Amazon.sa and Amazon.eg are both in Arabic. A big mistake would be to assume that buyers across Amazon’s 3 MENA marketplaces would be similar – in spite of the findings portrayed in this article, the 3 demographics are unique in their own right. A certain amount of sensitivity is crucial when expanding to any of these 3 platforms.

Last but not least, culture and religion play a massive role in developing a relationship with Arab customers. Perhaps Noon.com is doing so well precisely because it understands the cultural and religious sensitivities of its market. Take White Friday, Ramadan observance, and current events – all of these play a part in the lives of MENA consumers, and should be taken into consideration when planning out marketing activities for the region as well.

The bottom line is, MENA is a growing market for Amazon.

It’s a good idea to keep an eye on that space; there are big opportunities and huge gains to be had for astute sellers. Strike while the iron is hot – especially if your product matches the type of merchandise that Arabs look for!

Do you think a MENA move is a good decision? Or it it wise to err on the side of caution, and wait for the market to mature? Share your thoughts with us!

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