We have summarized below in 7-steps how to sell on Amazon UAE.
In 2017, Amazon acquired the Middle-East largest ecommerce retailer SOUQ.com. In May 2019, “SOUQ, an Amazon company” officially became amazon.ae. Today, when you register your Amazon AE Seller Central account, you access a very large and valuable customer base. The United Arab Emirates has a fast-growing ecommerce sector with a young and wealthy population (30.3 avg. years old and 43$K GDP per capita, vs. 42$K in UK according to World Bank 2019 report), leading to a strong demand for high-end branded products. Amazon has put in place and continuously improves its state-of the art logistics and powerful tools to help you sell in the UAE while complying with tax and product regulations, in more than 30 product categories.
Be aware that safety and compliance regulations in UAE differ from those in your or other geographic regions. Customers trust that they can always buy with confidence on Amazon so it is your responsibility to make sure that you and your products comply with all applicable laws and with Amazon’s policies concerning Category, Product and Content Restrictions. You can review the requirements by category here.
Selling on Amazon will help you accelerate your growth and potentially reach millions of new customers. We summarized below a 7-step process to get started:
Note: After you register (but before you start selling), Amazon will verify your identity with the Seller Identity Verification process (SIV).
You can store and fulfill the products you sell on Amazon from your own local inventory, or via Fulfillment by Amazon (FBA). It is very important to remember that if you choose to manage your own shipping, you are responsible for the customer experience from shipping to customer returns. We recommend using international carriers and select duty delivery paid. With FBA, you just send your inventory to one of Amazon fulfillment centers in Dubai and Amazon will pick, pack and ship to the end customers. Amazon will offer some additional services such as the customer service, refunds and returns.
Goods that are imported into UAE are subject to a value added tax (VAT). The rate of VAT that applies to most supplies of goods and services in the UAE is currently 5% and may vary at the time of actual sale. It is very important to know that you are responsible, and not Amazon, for your own VAT obligations when selling to UAE customers.
If you are a non-UAE resident supplying goods to a UAE customers locally through Amazon’s FBA channel, then you will be required to register for VAT irrespective of your revenues. You can register online on the tax authority’s website. We would be happy to support you further on this matter if you have any questions.
Important: Information on this page does not constitute tax, legal, or other professional advice and must not be used as such. You should consult your tax advisor for if you have any questions.
We can write a 10 pager on this 🙂 Let’s have a chat and we can help you unlock growth leveraging the key marketing tools such as Sponsored Ads, Brand Registry, Coupons, Lightening Deals and much more…