Online businesses are growing in importance with each passing day. Today, hundreds of people have shifted to online businesses worldwide. Today’s online market is filled with great potential not just for the consumers and customers but equally for those who want to invest. When in search of a place to start an online business, Dubai is one of the best choices you have. With an extensive and developed e-commerce market, online Dubai businesses can take advantage of the multiple benefits offered here, like a 0% tax rate and minimal bureaucracy, just to name a few.
If you want to start an online business in Dubai, it isn’t as hard as you think. Here is your complete guide about starting an online business in Dubai. Let’s not keep you waiting.
Why Should You Start a Dubai Online Business?
Online shopping has become one of the world’s most popular activities, with retail e-commerce sales reaching USD 4.28 trillion in 2020, 18% of which was e-commerce. Talking about the UAE, in 2020, there had been a great leap getting USD 3.9 billion in the market with a 53% annual increase. Experts believe the UAE’s e-commerce market will reach USD 8 billion by 2025. With the ever-growing popularity and use of the online platform worldwide and in Dubai, it’s wise to invest in an online business in Dubai.
What You Need to Know Before Setting a Dubai E-Commerce/Online Business?
Before we head to the steps to start an online business in Duba, here are some things you need to know beforehand.
1. Make the Right Choice for Your Business Structure
One thing that matters most when setting up an online business in Dubai is your company’s structure, which should depend on your business preferences and activities, whether you’d like a partner/sponsor or 100% ownership.
With e-commerce, your company structure will be either a Free Zone Company or a Limited Liability Company.
2. Set Up Business in the Suitable Jurisdiction
Whether you want to work independently or with a partner, you’ll need to decide upon the business jurisdiction. While a mainland license allows you to sell or trade the services and products directly to the market, a local distributor will work with you if you register in a free zone.
The city has almost 30 free zones, each offering international trade and full foreign ownership. When you choose a jurisdiction for your company, make sure to consider factors that will bring more benefit to your company.
3. Open a Bank Account for your Business
After applying for the e-commerce license and setting up your business, you next need to set up a bank account for your business for managing the finances. To avoid extra fees, you may want to open a simple bank account, but because of the difficulty of managing personal finances and business revenues, it’s best to have a bank account that can help you manage things better.
4. Getting Your E-commerce License
At this stage, you need to decide whether you would or wouldn’t need an e-commerce license. There is a difference between selling products and services in the UAE. You will need an e-commerce license if you want to sell physical products through online platforms, but if you’re a life coach or fitness trainer giving online classes, you won’t need an e-commerce license. You need a professional license to provide customers with professional services.
If you sell digital products, you won’t need an e-commerce license again. This applies even if you use online transactions and payment gateways. Since physical goods aren’t delivered, your services come under “online services.”
If you are uncertain about the license, get in touch with a specialist to help you.
5. Select Your E-commerce Platform
An e-commerce platform is a software responsible for handling both the customer-side and the vendor-side of transactions. With many e-commerce platforms available, you can easily decide the one that suits your needs best. These platforms are a quick, simple, and cost-effective solution for online businesses. Some of the popular e-commerce platforms include WooCommerce, Shopify, Magento, and Big Commerce.
6. Getting the Brand Designed
Your branding is important so never go looking for shortcuts. When it comes to graphic designing for your brand, don’t do it yourself unless you have the appropriate skills. We can’t emphasize enough the importance of branding. Your brand is representative of your business values, personality, and philosophy. This social construct shows people about your brand, visually and in terms of voice as well. Design your brand so that shoppers like coming here, so you can turn them into your customers.
7. Create your Website
After your branding, you need to design a store on your eCommerce platform. Based on the selected platform, you may either want to create shop by yourself or hire someone for the job. It’s always best to seek help from professionals for the best results. Since a lot happens in designing a modern, professional website, you need the proper knowledge to get a good experience. Here, you should understand the user flows, copywriting, website speed, image optimization, and mobile optimization. You can choose some premade themes at a reasonable cost.
8. Bringing Visitors to Your Online Business – Digital Marketing
Now you are ready with your online business. What to do next? It’s time to bring in the customers! Digital marketing is the answer to your success online.
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Content Marketing
To sell online, you must create good-quality content. Think from the perspective of your customers, why would they want to buy from you? Content marketing is about how this message goes across. Your content should be relevant and targeted to your audience using the right channel. In this way, your community will remain engaged. Content marketing is all about creating a strong customer relationship.
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Advertising
Advertising is the best way to scale your business ahead and kickstart it. Advertising tends is most important in the initial stages of your business to give it a good start.
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SEO
Search Engine Optimization is the process of discovering, assessing, and ranking your website’s content better than your competitor’s websites. Marketing and SEO ranking are very closely linked. If Google bots find your website answering the customer’s questions in a better way, your site will be ranked higher. This is one of the best things for your Dubai online business.
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Email Marketing
Email Marketing is another way of communicating your products, offers, services, and updates, to your customers. Making such an environment where your audience feels valued personally is a great way to boost your brand feedback.
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Social Media
Since 71% of adults use social media today, there can be no better way to target your audience. YouTube, FaceBook, Twitter, or other social media websites are ideal marketing platforms where you can promote your brand and events.
Business Ideas to Consider for Online Business Setup in Dubai
Now that you know how to set up an online business in Dubai, here are some of the best online business ideas.
- Fitness Coach (Virtual) – With the pandemic in place, many entrepreneurs have started online yoga, mediation, and workout sessions.
- Mental Health Counseling services – With growing times and increasing stress, the covid-19 pandemic has increased the demand for mental health counseling. This need can be converted into an online business.
- Wellness Coach – Wellness-related advice and services can be offered virtually by certified nutritionists as an excellent online service.
- Social Media Managing – Digitalization has now become the need of the hour; hence social media management can be a good option for online business. Brand awareness, and advertisements, are all needed. A social media managing business can handle these things for different brands.
- IT Solutions – In this rapidly-growing era of technology, technology-linked services are much in demand.
- Drop-Shipping – Drop-shipping is a popular area in today’s e-commerce world. A good option for those wanting to dive into the online world.
- Consulting Services – Whether it’s financial, educational, or recruitment, consultations can easily be conducted on a digital platform today.
Online Dubai Business Startup Costs
When it comes to the cost of online businesses in Dubai, they vary based on several factors like the office space required, visas, business size, and your choice of mainland or free zone. On average, the costs may fall between 15,000 AED to 50,000 AED.
Benefits of a Dubai Online Business
With the world shifting to the digital platform, there can be no better way to earn than to start an online business. Want to know some of the benefits of starting an online business in Dubai? Let’s have a look.
- Online businesses in Dubai get complete repatriation of the profits to their native country. This way you are free to spend 100% of your capital without restrictions.
- Jurisdictions for online businesses in Dubai offer investors 100% business ownership based on the activity.
- The process of getting a business license is easy and quick
- The operating costs and setup are very economical
- Exemption from personal taxes
- Conducting a business is very easy
- Assitance in bank accounting
- A 3-year residence visa is granted
- No export./import duties are necessary with an e-commerce license
The Verdict
Dubai is home to great opportunities and possibilities for people wanting to start a business in the city. As the rapidly-growing world shifts to the online platform, Dubai doesn’t stay far behind. With increasing opportunities for online businesses, and with the multiple benefits, it’s a wise decision to start an online business in Dubai. You won’t fall short of options for online businesses in Dubai are a lot of them here like the ones covered above, only to name a few.
No matter which business you opt for, we hope the information above will help you to understand the working of the e-commerce market in Dubai and how you can earn your place here.
