E Commerce License in UAE

E commerce license in UAE enables conducting commercial transactions electronically on the internet. E commerce activity can be trading business or as service provider accomplishes the business with the assistance of the online platform.

The process of starting an online business can be intimidating for many people, especially if they never done it before.

You have many options when it comes to starting a small business. But if you're looking to jump into e-commerce, starting an online retail business can be a wise choice. From the convenience of making payments to the variety of inventory you can sell, owning and operating an online retail store can be a lucrative and fun business venture.

Importance of Starting a Successful Online Retail Business

Many people want to be successful, have stable finances, and work from home. This is more true now than it has ever been because of the internet's development and the possibilities it has created for new business opportunities.

The current generation is frequently referred to as the immediate gratification generation because of how linked and easily available our world is now.

With the use of an internet website, customers from all over the world may easily purchase your products and services whenever they want, 365 days a year. Online store is a different name for this. A sale can be made or lost based on the general effectiveness, quality, and appearance of your website.

Types of E Commerce License

There are three types of E commerce license available in UAE

• Portal

If the company will be acting as an intermediary between the buyer and the seller, the business activity in the UAE will be called Portal or E-marketplace.

Most famous example of e-marketplace is Amazon.com the website serves as a platform for the merchants who advertise their goods, and the buyers.

• E Commerce(E Trading)

E-commerce setup is a choice of companies who want to sell their own goods through their own website.

It can be a website selling only 4-5 types of goods or big online retailers such as Mumzworld.com for example.

• Commercial License

Even if your license does not relate to e-commerce as such, it does not mean you cannot sell your products or services online. You can open a company with any business activity and conduct it online. As per the law, the mode of sales does not make any difference.

You can provide educational trainings, marketing consultations, sell food or clothes online or do any other type of business thought the Internet.

Free Zone or Mainland

Before making the e-commerce license application, the first step is to identify the right jurisdiction best suits the requirement.

Department of Economic Development

Establishing the company under Department of Economic Development will enable to trade directly with the local UAE market without working with a local agent

Free Zone Option

Establishing the company in Free Zone will benefit from the UAE’s zero percent tax rate, and also take advantage of full customs tax exemption, no currency restrictions and the ability to repatriate 100% of the capital and profit. However, it require the services of a local agent or distributor if you wish to trade directly with the local UAE market.

How to run your business successfully

Identify and Create your Brand's Assets

Once you've decided what you want to sell, the next step is to select your brand or business name and create your brand assets, including your logo. Some people may find this phase to be fairly easy, while others may find it to be very challenging. Explore how to create a strong brand for your e-commerce firm as well.

Develop Build and launch website

Your website is the most crucial component of your e-commerce operation. Building and testing your website may take some time, but it will be worth it in the long run because it will be your main tool for generating income, a platform for attracting and interacting with clients, and a place to promote your goods and services. In order to create a website that generates revenue, you must consider factors such as mobile usability, secure hosting, and website upkeep.

Include online payment gateways

As an e-commerce business, it is necessary to present different payment options to your consumers. Integrated secure payment gateways that include credit card payments and pre-paid card systems are the most convenient ways to do this. Another payment option is cash-on-delivery (COD), which comes in very handy for various situations.

Secure logistics, storage, and delivery

Establish a reliable logistics system to ensure the efficient delivery of your products to your consumers. The client can opt for a third-party logistics or build their own logistics depends on the jurisdiction.