A step-by-step guide on how to set up a successful drop shipping business in UAE.
- Research and select a niche
- Get a Business License that covers the range of products you intend to sell
- Research and select secure and reliable supplier partners
- Build a responsive company website with payment gateway integrated.
- Exercise prudence in managing orders and client expectations.
- Analyze and adapt your strategy
If you’re looking to set up your own drop shipping business in the UAE, this guide is meant for you. It contains all the information a beginner needs to establish and grow drop shipping in one of the most digitally-friendly country in the world.
What is Drop shipping
Drop shipping is a business niche where a seller doesn’t keep the products in stock. Instead, they accept orders via online methods and pass the order to the suppliers who, in turn, deliver the product to the customers directly. That’s why drop shipping requires very little business operating cost – making it a viable and popular option among many entrepreneurs to start a business with a small amount of savings. However, contrary to the popular belief, drop shipping is not a get-rich-quickly industry but can offer lucrative benefits if approached right with proper planning.
Why Drop shipping in the UAE is LucrativeStarting your own business in drop shipping in the UAE is a promising endeavor, because:
- Almost 100% of UAE population actively uses the internet
- You can easily sell any product in the UAE that is not easily accessible in the local markets of other countries.
- Data on customer buying trends are easily available and you can assess the local shopping trends.
- Knowledge of the local market and high-selling products in the UAE makes you stand apart from competitors outside the UAE.
By focusing on the following strategies, you can build a successful business in drop shipping.
1. Select a Niche: The most important thing to consider in drop shipping is selecting a product that you can sell easily. Don’t just follow the hype, instead, it needs to be something you are passionate about and interested in. Some important points to consider while choosing a niche in the UAE (or anywhere in the world) are:
- Low shipping costs: It’s very important the shipping costs of the product are affordable and customer-friendly, otherwise, the customers may refrain from buying it. Choose something inexpensive to ship, if not free of cost. That would help you attract more sales.
- Appealing to the Audience: Make sure your product/service is appealing to the majority who can buy it on the spot with disposable income. Also, you would generate a high conversion rate if you can trigger impulsive buys.
- Generate High Profits: well, the sole purpose of starting any business is earning money. In a dropshipping model, you spend maximum time on marketing and customer acquisition, and it takes equal efforts to sell a $50 and a $1000 product. Search for products that generate high profits.
- Not easily found in Stores: the product shouldn’t be readily available in every local store and customers have to search for it online. That way, you are more likely to get more online traffic and potential conversion from buyers.
Just remember, you might be competing with multi-national brands such as Amazon and others. That shouldn’t steer you away from your niche as high competition means high demand in the public. Instead, it offers you an easy way to evaluate which products are currently in high demand in the local public.
2.Get A Business License: Most people have the misconception that you don’t need a business license for drop shipping in the UAE since they just act as an intermediary between the supplier and the customers. It can’t be any far from reality. To start selling anything in the UAE, you have to officially register and get a Business Trade License.
These licenses can be expensive and their cost depends on the type of business, number of partnerships, region of business operation, etc. Starting a business without official government permission can result in fines. Check with local authorities to business centers to advise you on the right type of license to procure to set up your business depending on the niche you will focus on.
3.Secure A Reliable Supplier: Maintaining a business relationship with the right supplier is critical to the success or failure of your business. Most suppliers are located outside the UAE, making reliable communication a critical challenge. Don’t finalize with a supplier unless you’re 100% confident in terms of the ability to meet demands and response speed.
Partnering with an unworthy supplier or an expensive one can bring your business to a halt and ruin your reputation. Give due diligence by asking all the necessary questions about their capabilities – in case you have to deliver urgently. Also, you can get useful insights from your peers and other entrepreneurs who are in the same field or have invested in the same niche in the past. Check online review and volume of orders the supplier has proceeded for similar products in the past.
4.Build and Improve Company Website: You can’t start a drop shipping business without having a professional website. A platform where the customers can access all the information pertaining to your credentials, the products or services you offer and can also track their orders. Several content management systems like Shopify offer templates that can be easily customized to set up your drop shipping site. You don’t need a high-tech website like those of international brands. Just contact a Website Design Company in UAE and order a custom web solution or a mobile app. Also, such a platform will help you attract customers beyond the UAE borders. 5.Prudence in Managing Orders & Client Expectations: A satisfied customer is the best business strategy. You have to earn a reputation as the most credible drop shipper in the town and it all depends on how well you manage the orders. Keep track of all orders to ensure timely delivery of products to customers without any unnecessary delays. Exhibit professional communication skills and have a proper mechanism in place to respond to customer’ questions, queries, shipping issues, return requests.
6. Analyze and Adapt Your Strategy: Drop shipping is an ever-changing niche with people changing their preferences and buying habits quickly. You have to analyze customer buying trends regularly and adapt your strategies accordingly. Use the data from website and social media traffic analytics to improve your sales.
I hope this article has provided you enough information to help start a drop shipping business in the UAE. If you are looking for a website design company to help you set up a website for dropping, call us on +971 4 244 1163. Our team will be on hand to provide a free consultation to guide you.