So, the brown study is over, and the drop-shipping business in Dubai strikes the right chord? We have to say, great pick! Dropshipping is worth the investment in 2022 not just because it is a low-cost business idea but also because the process of starting and running a dropshipping business in Dubai is an easy breeze. Plus, the increasing popularity of online purchasing amongst people is the cherry on the top!
What is dropshipping?
Dropshipping is nothing but the act of mediating between the suppliers (wholesalers or manufacturers) and buyers for order fulfillment. This means drop shippers don’t carry or stock the products they sell but purchase the inventory from a third party after the order is placed by the customers. The 3rd party in this case can be a manufacturer, a wholesaler, or even a giant retailer. Fundamentally, dropshipping is an online business model where merchants directly ship the retail items from 3rd party to the buyers. For instance, say “A” is a dropshipper, “B” is a buyer and “C” is a supplier. “B” places the order on A’s website, and “A” further places the same order with “C” to deliver it to “B”.
How dropshipping model differs from the standard retail model?
The major difference between dropshipping and the standard retail model is that the selling merchant doesn’t stock or own inventory — they act as the middleman.
Why dropshipping business in Dubai?
It doesn’t take a genius to recognise the advantages of doing dropshipping business in Dubai, UAE. The 44% rise in eCommerce sales in 2020 is a dead giveaway that we have already stepped into the golden age for eCommerce entrepreneurs. And the prediction done by Dubai Customs that E-commerce sales in Dubai are to rise by 23% to AED100 billion in 2022 is all the more reason why most entrepreneurs are taking the dropshipping route to enter the business world in Dubai. Several other benefits of doing dropping business in Dubai include:
- Dropshipping business in Dubai is the easiest route with low barriers for newbie entrepreneurs to start making money online. Just a droppshipping business licence and an eCommerce website and you are good to go
- In the dropshipping business model, there exist no hassles or need of stocking or warehousing inventory, arranging supply logistics and staffing. Once you sell merchandise, it’s the dropshipping supplier’s headache to fulfill the order
- Your dropshipping business setup in Dubai doesn’t require you to cough up thousands of dirhams in inventory upfront
- It doesn’t just save you from investing your money in inventory stocking but also tons of your time and effort by taking order fulfillment and shipping tasks off your plate. This simply means you have plenty of time to research products that sell the best
- You have the flexibility to sell as many (or as few) dropshipping items as you want through your store. The eCommerce business model is scalable, letting you work whenever and wherever you like
- Unlike traditional retail companies where they have to already have the products already present at the store, the dropshippers can sell a wide selection of products
- You may easily scale up your dropshipping business, unlike the brick-and-mortar business by simply listing the suppliers’ new offerings without making upfront payments
Dropshipping is an attractive business opportunity especially for startups because it helps to minimise the risk of the business and allows one to invest their funds into digital marketing growing the business instead of having the money blocked in stocking the items that no one knows when they are going to say goodbye.
What are the shortcomings of dropshipping business model in Dubai?
Once again dropshipping business is a bed of roses but as we all know convenience and flexibility come at a price, there are some cons too of working in Dubai as a dropshipping company such as
- Shipping complexities
- Supplier errors
- Inventory-related issues
- Low profit margins
- Huge competition
- Limited branding possibilities
- Need of 24X7 customer support
- Possibility of legal issues
- Infeasibility to offer post-paid options
How can I become a dropshipper in Dubai?
It doesn’t take a village to operate a dropping business in Dubai. Neither does it require the sacks of money. To do dropshipping in Dubai, all you need is a dropshipping licence in Dubai, a user-friendly website to display your product and accept orders from customers, and a little bit of market research. Inventory stocking, supply logistics and order fulfillment is not your headache but your suppliers’. You just have to process the orders placed by the buyers and leave the rest to the suppliers you are going to buy the ordered items from. However, you are required to track the shipment, follow up on the orders and address any inquiries, grievances and issues the buyers may come up with, including return/refund requests.
How to choose a niche for a drop-shipping business?
Let’s face it! Souq and Noon can sell anything to everyone; you can’t. And that’s where the idea of niche comes and saves your months of hard work and study to design your niche site and make it rank in the top 10 on Google from going down the drain. Examples of fortunate niche ideas can range from selling cotton towels to fancy, luxurious, gold jewellery for men and women. Online companies, whether in Dubai or anywhere in the world, need a commercial niche for building a business easier and faster. But picking a niche that both interests you and has an ample existing customer base to be profitable for your online business is tricky. You may follow the below-mentioned steps to determine the perfect niche for your eCommerce business in Dubai.
- First and foremost, make a list of possible niches for your business
- Research the popularity potential of each niche using Google
- Find popular search terms that a large number of people are already searching for with the help of keyword resources, such as Google AdWords Keyword Planner or Answer the Public
- Go through digital publications in connection with the chosen niche or industry, which are both good for research and potential sites
- Search affiliate marketing sites like Clickbank for products related to your niche
- Check out social media platforms like Instagram to see what hashtags and content related to your niche are widespread and how many people follow or use them
Niching allows you to:
- Divert all your efforts to a single line of products, connecting you with a focused and interested audience
- Make your dropshipping business in Dubai more searchable online
- Connect with advertisers, sponsors, or other businesses
- Give your dropshipping business in Dubai a clear direction for developing content or handpicking products to sell
- Simplify your marketing by giving you a clear message about the purpose and benefits
- Target certain groups of customers and hone your marketing to suit them — which, hopefully, will result in stronger sales
- You sell very specific dropshipping merchandise including something that customers might not find even at the gigantic Dubai Mall
- Think creatively yet strategically that helps you ascertain where to focus your efforts
- Make the process of launching and growing your audience quicker, smoother, and more profitable
After you figure out the broad niche, the general idea you can follow is trying to become more specialized, hyper-specialized.
What are the best niches for Dubai dropshippers in 2022?
Here are the top 10 niches for dropshippers to enter the Dubai market in 2022 with flying colours:
- Baby Products
- Furniture and Home Decor
- Health Supplements
- Survival Gear
- Pet Supplies
- Beauty & Skincare Products
- Women’s Clothes
- Jewelry Niche
- Gadgets/Technology Niche
How can I start a dropshipping business in Dubai?
Just like most businesses in the UAE, the process of starting your dropshipping business in Dubai is simple and straightforward and has almost similar steps. The key steps to walk to incorporate a drop-shipping business in Dubai are:
- Determine the merchandise you want to sell: Decide uncommon items (or common items that you can offer at uncommon prices) that you can sell for profit, considering the lifestyle, needs and purchasing habits of more than 90% expat residents and legions of tourists. You may also choose the items that are sold by retail stores at high prices. For instance, electronic items including airpods and mobile phones, cakes, etc.
- Develop a website to display your collection: You need an online platform or two to sell and advertise the range of your products. You may also create an online store on top eCommerce websites in the MENA region loved by shoppers such as Ounass.ae, Amazon.ae, Groupon.ae, amazon.ae, Shopify.ae, amongst many. These platforms offer you lucrative benefits such as payment gateway, marketing, client engagement, shipping facilities, etc.
- Create social media accounts for… you know! You can’t be ahousehold name overnight! You need to market your business and direct more and more people to your website. Social media can do the trick in a heartbeat!Brand your website on popular SM platforms such as Facebook and Instagram. Do we need to mention what these platforms can do when it comes to marketing and branding? Do not forget YouTube!
- Find suppliers to source the chosen products: Since your suppliers are fully accountable for the inventory and shipping of the merchandise you chose to sell, you have to tie up with reliable suppliers to ensure on-time delivery of the orders placed by the customers through your website. The best way to find the right suppliers is to evaluate their shipping estimates, reviews & ratings and customer support. Printful, PlusBuyer, Modalyst, CROV, AliExpress and CJDropshipping are some of the best dropshipping suppliers in Dubai, UAE.
- Obtain the dropshipping trade licence from DED: No business can be conducted in Dubai or any part of the UAE without a valid trade licence. However, the best thing about starting a dropshipping business in Dubai is you may operate on social media with an eTrader licence issued by the Department of Economic Development (DED). DED has not listed any specific activity or licence for dropshipping. You must figure out the relevant licence for your eCommerce business. For carry out import-export activities as well, you will need to have the authority’s permission through the trade licence. Also bear in mind that DED is not the only licencing authority in Dubai for businesses. You might want to check out what other approvals you need to become a dropshipper in Dubai. One way to determine the right licence for your dropshipping business in Dubai is to consult one of the best business setup consultants in Dubai, such as Adam Global business consultancy company
- Open a corporate account in Dubai: The next step after getting your drop ship trade licence in Dubai is to apply for a business bank account. For professional assistance or guidance in international banking, you may contact our Dubai business setup advisors
How to ensure success in dropshipping business in Dubai in 2022?
Half the battle, if you are able to solve the riddle of how to win the buyers’ hearts, i.e., by adding value for them. This is noteworthy for all businesses, but much more so in the world of dropshipping where you’ll be contesting swarms of other “me too” stores maintaining similar products. Here are some simple tips to make sure your newly established online business in Dubai keeps stays flourished while steering clear of troubles:
- Do not skimp on customer support. As you grow you may consider availing of the business toll-free number for providing authentic customer service
- Splurge on marketing or say digital marketing
- Hand-pick multiple suppliers to get your hands on a more lavish variety and enrich your offerings
- Find ways to add more value to your buyers’ purchases
- Try your best to offer free shipping to the buyers
- Manage the inventory to stay up-to-date with the stock available with the suppliers
- Create trust in your website to boost sales. One of the ways to do that is by implementing customer reviews using specific software such as Judge.me
- Design an E-Commerce site that checks all the boxes from customers’ point of view. For instance, it should feature the content on point, mobile & desktop friendliness and clear shipping & refund policy in addition to so many other user-friendly options
- Have in place solid privacy, shipping, and returns policies for potential customers to view when thinking about purchasing through your dropshipping store. (Failing to have the latter could turn off 54% of buyers.)
- Keep eyes on your competitors’ move to stay ahead and stand out in the crowd
- Ask suppliers for reviews
- Keep your audiences’ holidays or special occasions at your fingertips to lure the crowd by crafting promotional deals
- Provide your buyers with all the possible pre-payment options in Dubai, including PayPal. Sorry, COD is not for you despite nearly 70% of consumers in GCC preferring Cash-on-Delivery to pay for their online orders
- Take legalities into account when confirming whether dropshipping is worth it such as legal structure, taxes, contracts, policies and insurance.
- Don’t imperil being personally liable for any debt the business accumulates, like overspending on marketing
- Consult a lawyer to draft your dropshipping partner agreement and protect yourself in the event something goes wrong
- Buy the right business insurance to protect your dropshipping business in Dubai from potential risks
Drop by Adam Global Dubai offline before going online!
There might be endless reasons behind you choosing the dropshipping business but one of them is your low budget for sure. The capital requirement to initiate your online dropshipping company, no question, is low but it can spiral up before you will realise it if not for professional guidance. Even a single wrong decision taken today undeliberately can cost you an arm and a leg in the future, which is the last thing you want when embarking on your entrepreneurial journey. Meet your dropshipping business consultant in Dubai at Adam Global to make every step of your way smooth and free of any bumps or potholes. Giving full peace of mind at half the price, our expert advice will be with you, keeping you from any trouble forever and day. Find out how our eCommerce business formation experts can help you in getting the relevant business licence and launching your dropshipping business website in Dubai in the free consultancy with them!