Ecommerce businesses have grown exponentially in the United Arab Emirates (UAE) with soaring consumer demand throughout the country. There is naturally increasing demand for a robust support system including real estate space for setting up warehouses and other infrastructure. Demand has hit the roof for quality logistics services and warehouses for securely storing products. UAE offers custom-made warehouses in several locations with top-notch infrastructure. Considerable smartphone usage and internet penetration have contributed towards making UAE one of the biggest ecommerce hubs worldwide.
Vital Support Systems for E-commerce Companies in UAE
- Distributors and Suppliers– Distributors and suppliers have to be carefully identified for backend support and they are vital parts of business success. They make sure that products delivered have premier quality while functioning as intermediaries between retailers and manufacturers. Possessing an efficient network for distribution and supply enables lower costs, enhances overall product offerings, builds stronger relationships and also enhances crucial processes.
- Logistics– Ecommerce depends greatly on logistics and warehouses are a must for enabling logistics and storage, while maintaining stocks of all items. Logistics has wide scope including preparing for delivery documentation, packaging, coordination of delivery, returns and more.
- Storage & Warehousing- Complementary to the above point, storage and warehousing infrastructure is highly essential for companies involved in ecommerce. This ensures suitable shipment management, inventory management and smooth communication with ecommerce companies. Order management systems track shipments and delivery as well.
- Payment Management– Retailers are now using multiple digital platforms and mobile ecommerce platforms. The online payment system is a vital support system for the ecommerce sector. A solid payment gateway is necessary along with a user-friendly page for checkout.
- Database management and security– Any ecommerce page should have a secure system for fraud detection. Content and user details should be stored securely and software should be continually upgraded along with the address verification system for checking frauds (credit/debit card). Cybersecurity and database management are highly essential.
- Technology Platform– The technology stack should enable smooth tracking, execution and management of customer requirements. The system should be able to manage ecommerce transactions on a regular basis.
- Customer Experience– The ecommerce site should be tested thoroughly before being brought forward to customers. There should not be downtime or error messages while shopping online or during transactions. The portal should be convenient to use.
Setting up an ecommerce business will be a breeze in the UAE. Almost all free zones in the country have provisions for setting up portals or ecommerce sites. The DED (Department of Economic Development) does not have any special or dedicated ecommerce license for expatriates. The reason is that any business may venture online irrespective of the type of license that it possesses. Some of the free zones which have specific ecommerce business licenses include the following:
- UAQ free trade zone
- Ajman free zone
- Fujairah Creative City
- Ajman Media City free zone
Commercity will be a dedicated free zone for ecommerce which will be established and functional soon. This will come with facilities like portal payments, photo studios, warehousing and logistics. It will cater to the MENASA region, i.e. Middle East, South Africa and North Asia. For assistance with company incorporation, auditing, accounts, VAT registration and filing, you can reach out to GCC Filings. The company will help you handle several vital business procedures.