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Top E-commerce Marketplaces for Businesses in the United Arab Emirates (UAE)

Team Unicommerce — Mon, 27 Mar 2023 12:19:24 +0000

The e-commerce landscape in the UAE is on the verge of a seismic shift. In fact, according to Statista, it is projected to boast a staggering 8 million users, a testament to the nation’s appetite for online shopping. As of 2023, user penetration already stands at an impressive 79.2%, and this figure is poised to surge to 82.0% within the next four years.

These statistics paint a vivid picture of the flourishing e-commerce market, offering opportunities for sellers to establish their presence. This rapid growth of the e-commerce ecosystem has also given rise to multiple marketplaces. Sellers looking to stay competitive should choose the right marketplace for their business.

It is also important to recognize the thriving categories driving this expansion. As of 2023, the top segments capturing the attention of online shoppers in the UAE include Fashion and Apparel, Electronics and Gadgets, Beauty and Cosmetics, Perfumes, Dry Fruits, Baby Products, Health and Wellness, and more. Understanding these popular categories is key to tailoring your business strategy and product offerings to cater to the preferences of the local consumer base.

So, whether you are an established online retailer or a newcomer looking to venture into the world of e-commerce, this comprehensive guide will serve as your compass, helping you navigate the top marketplaces in the United Arab Emirates.

Top E-commerce Marketplaces in the UAE

Here are the top e-commerce marketplaces in the UAE offering abundant opportunities for both buyers and sellers:

Amazon

Building on its global reputation, Amazon ventured into the UAE market, offering an expansive range of products and services tailored to the local audience. The online retailer established a presence in the Middle East through the acquisition of Souq.com, which was later rebranded to Amazon.ae for the UAE.

Commission Structure: Starting from 5% or min 1.0 AED to 15% per item, depending on the product category
Shipping Mechanism: Amazon UAE operates on three models:
1. Fulfillment by Amazon (FBA) model, which allows sellers to store their products in Amazon’s fulfillment centers. Amazon handles storage, packaging, and shipping. Amazon’s local courier partners include Emirates Post, Aramex, SkyNet, PostaPlus, Shipa, and Naqel.
2. Easy Ship model, the orders are picked up from the seller’s location by an Amazon Logistics delivery associate and delivered to the buyers’ doorstep.
3. Self-Ship model, which allows sellers to ship products using their own delivery partners.
Monthly Web Visitors: Around 16 million
Top Selling Categories: Electronics, Beauty, Fashion, and Health

Amazon has acted as a springboard for numerous businesses in the UAE. A testament to its influence is reflected in the words of Dr. Sakher Al-Amir, Chairman of Kyan Medical, a leading medical distributor in the region, “Since we started selling on Amazon, our sales have increased by eight to nine times.”

Noon

Founded in 2016, Noon has rapidly grown its presence across the Middle East, with a significant footprint in the UAE. It has become a household name for many consumers looking for a wide range of products. What truly distinguishes Noon is the simplicity and accessibility it offers to sellers.

Within a mere 48 working hours, individuals from any location can become registered sellers at Noon. Additionally, the payment system is remarkably hassle-free, guaranteeing that revenue is disbursed weekly without any delays or deferred payments.

Noon operates as a multinational marketplace, and UAE constitutes the largest contributor to its Gross Merchandise Value (GMV).

Commission Structure: Ranging from 4% to 27% per item, depending on the product type
Shipping Mechanism: Noon operates on two models:
1. Fulfilled by Noon (FBN) or Noon Express allows sellers to store products within Noon’s customer fulfillment centers (CFCs). Opting for FBN means that Noon manages the inventory and handles customer orders, ensuring prompt shipping to customers on the seller’s behalf. Noon also takes care of customer inquiries and returns. All FBN items are prominently labeled as ‘Noon Express,’ allowing customers to filter and identify them easily. FBN is popular among customers due to its promise of delivering orders within 24 hours of purchase.
2. Fulfilled by Partner (FBP), where sellers retain their inventory in their own location. Sellers accept incoming orders through Noon Seller Lab, prepare the items for shipping, and then hand them over to Noon Logistics, either via pick-up or drop-off at a Noon hub.
Monthly Web Visitors: Approximately 3.8 million

Multinational companies like El Sewedy recognized the pivotal role that Noon played in their success journey. Ayman Osama, Business Agent at El Sewedy, shared their journey from initially selling five SKUs to now offering well over 200 SKUs from a wide range of globally recognized mobile brands.

Carrefour

Established in the region in 1995 through a strategic partnership with the UAE-based Majid Al Futtaim Group, Carrefour has since become a dominant retail force in over 30 markets across the Middle East, Africa, and Asia. Carrefour’s unique business model empowers brands to showcase their products across both online and offline platforms.

By collaborating with Carrefour, brands transition from mere suppliers to strategic partners, amplifying their presence in one of the world’s most dynamic retail landscapes.

Monthly Web Visitors: Around 1.3 million
Top Selling Categories: Groceries, Electronics, Clothing, and Household Items

Sharaf DG

Founded in 2005, Sharaf DG is one of the leading electronics retailers in the UAE. With its strong presence both online and offline, Sharaf DG has become a trusted name for consumers looking for electronics, gadgets, and a wide range of other products.

The retailer allows businesses to list their products, giving them complete control over inventory and sales performance. Sellers can work with a fixed margin or a minimum guaranteed margin, and they can monitor the customer journey and product views both online and in physical stores.

Founded: In 2005
Monthly Web Visitors: Approximately 1.3 million

DubaiStore

DubaiStore is a unique online marketplace launched by Digital Economy Solutions, a joint venture between Dubai’s Department of Economic Development and Emaratech. Established to support local businesses and SMEs, DubaiStore offers a platform for licensed businesses in the UAE to showcase and sell their products online without the need for individual e-commerce infrastructure.

What sets DubaiStore apart is its commitment to promoting local businesses. It provides a secure and transparent platform for both buyers and sellers, ensuring that all transactions are safe and trustworthy.

Commission Structure: 4-15% per item, depending on product category
Shipping Mechanism: DubaiStore has partnered with multiple logistics providers to ensure timely and efficient delivery of products.
Monthly Web Visitors: Around 480K
Top Selling Categories: Electronics, Beauty & Fragrance, Home & Kitchen, and Baby Products

Namshi

Namshi was founded in 2011 and quickly established itself as one of the leading online fashion and beauty marketplaces in the UAE. Headquartered in Dubai, this marketplace primarily focuses on offering a wide range of fashion and lifestyle products. The e-commerce marketplace Noon successfully acquired Namshi, further consolidating its presence in the online retail space.

Known for its user-friendly website and mobile app, Namshi makes it easy for customers to browse and shop for fashion and lifestyle products. They offered multiple filters and search options to help customers find what they were looking for.

Commission Structure: 12-16% per item, depending on the product type
Monthly Web Visitors: Approximately 360K

Let’s Sell Efficiently on the Top E-commerce Marketplaces in the UAE!

UAE’s e-commerce sector is in the midst of an exciting growth phase, presenting a wealth of opportunities for businesses. It’s essential to understand and leverage the potential of the leading e-commerce marketplaces in the country, such as Amazon, Noon, Dubai Store, and more.

These marketplaces are not only prominent but also highly user-friendly on both Android and iOS platforms. This user-friendliness ensures that your products are readily accessible to a broad audience, making it easier for you to connect with your customers.

However, it is equally important to remember that efficient management of your e-commerce operations is essential for success. Whether you choose any marketplace, leveraging the right technology and logistics providers can streamline your operations and help you make the most of the e-commerce opportunities in the UAE.

By making informed choices and aligning your business strategy with the right marketplace, you can unlock the vast potential of the e-commerce market in the UAE and position your business for long-term success.

Explore our platforms:

Our Top SaaS Solutions for E-commerce Businesses in the UAE:

How to Sell on Amazon Marketplace in The Middle East (UAE & Saudi Arabia)

Team Unicommerce — Fri, 25 Feb 2022 07:10:41 +0000

The Middle East is becoming a magnet for online businesses, especially after the onset of the pandemic as people have become quite familiar with online channels. As per a report by Bain & Company, e-commerce in MENA is expected to reach $28.5 billion by 2022.

While buying patterns have changed completely, people’s expectations in regard to online shopping have also elevated. Now you must be thinking about how you can leverage these growth patterns, and deliver the best quality services to your customers while scaling your business to its full potential.

The best way to align your business with the latest trends while yielding amplified results is that you must start selling on Amazon.

Why Should You Sell On Amazon In The Middle East?

Being one of the most popular marketplaces in the entire MENA region, Amazon has not only dominated multiple markets but is also one of the reasons for the increasing demand for online shopping in the region. Moreover, the marketplace has been present in the region after acquiring Souq, which was the best online shopping site in Dubai.

As the platform has been gaining popularity day by day, research by Podean reflected that Amazon UAEhas clocked around 43.6% of shoppers in 2020 while KSA reflected that Amazon Saudi Arabia is the most popular online retailer with 64% of shoppers shopping daily. With that being said, there are many other benefits that Amazon has over other marketplaces as you get:

Fulfillment Support: Having its own fulfillment model, Amazon provides end-to-end logistics support to businesses at an affordable fee.
Immediate Exposure: Businesses get immediate access to multiple buyers at a single point in time due to Amazon’s popularity.
Promotions and Offers: Amazon keeps on introducing promotional offers and e-commerce businesses selling over it can take the advantage of it.
Secured Transactions: Amazon guarantees safe payment processing with its seamless and safe payment infrastructure that allows sellers to sell without any worry of cyber fraud.
Multiple Payment Options: Amazon gives a plethora of payment options, including credit cards, bank transfers, e-wallets, invoices, direct debit, etc.
Simplified Listing: Having an easy-to-use infrastructure, businesses can list their products over the platform with ease.

Step-by-Step Guide to Become a Seller on Amazon in the Middle East (The UAE & Saudi Arabia)

1. Choose your business type: Before we begin with registration, you must understand that there are two ways through which you can sell on Amazon. You can either sell as a ‘brand owner’ by manufacturing your own product under a private label or you can sell as a reseller by finding the popular products that already exist and listing them over Amazon.

2. Choose your Fulfillment Strategy: Your next step is to select which fulfillment strategy suits your business the most. Amazon offers two fulfillment strategies: You can either sell on your own while maintaining inventory and delivering products to end-customers, or you can let Amazon take the responsibility of your orders (right from packaging, labeling to picking and shipping) via Fulfillment by Amazon (FBA).

3. Registration Formalities: Now that you have decided to sell across Amazon, your next step is to register on the platform. Amazon offers two models (Professional and Individual), you can choose between the two as per your preference then complete your registration by providing details, including:

Email address of business or Amazon customer account
Phone number
Government-issued national ID (e.g. Emirates ID)
Bank account number,
- For Businesses – Trade License if you are an owner and a Power of Attorney only if you are a legal representative
- For Individuals – Either of recent bank account statement, credit card statement or utility bill

Amazon, while gaining great popularity across the Middle East, is offering competitive pricing to the sellers. Find the Fees & Pricing details from here: UAE & KSA

4. Activating Account: After the registration is complete, the Amazon team will verify the documents within 48 hours. After that, you will have the access to your Seller Central account.

5. List Products using Seller Central: Seller Central is a portal where you can add product information, update inventory, manage payments, and more. Moreover, it’s a place where you list your products.

Amazon has some specific norms and guidelines while listing products. So you must fulfill them before listing your products.

6. Create Product Detail Page: Your next step is to create a product detail page where your offered details will be displayed. The page includes the title of your product, 3-4 images, any variation in the product available, crisp information about the products in bullet points, and more.

7. Deliver your Products: Get ready to transport an enhanced customer experience by fulfilling the last step.

4 Strategic Ways to Increase Your Sales on Amazon in the Middle East

While it is very crucial to learn to sell on the platform, it’s equally important to learn the ways of increasing sales and managing operations. We have culled out a list of a few techniques to grow your e-commerce business with Amazon. Read on!

1. Inventory management

Start with a unified panel that can allow you to manage inventory levels so that you can manage to avoid stockouts while amplifying the business profit margins. Moreover, with a centralized platform like Unicommerce, you can update your stock over Amazon while minimizing order cancellations.

2. Order management

Allocate orders automatically with order management software to fulfill them quickly. You can also leverage barcode scanning technology to avoid any sort of confusion, eventually reducing both order returns.

3. Diverse catalog

Add a wide variety of products by leveraging the cutting-edge technology solutions of platforms like Unicommerce that give “catalog manager” to handle multiple catalogs. Moreover, bringing diversity in terms of color, shape, usage, etc., will also enable you to fascinate your customers.

4. Seamless integrations

Connect with best-in-class service providers, including shipping partners, ERP systems, etc., by integrating your system. Integrations also enable you to simplify routine tasks, such as accounting, and more.

If you’re serious about scaling your business across the platform, then there’s no better time than now because the Middle East online shopping scenario is growing like never before. While Amazon is the best way to become a successful seller in the area, you must optimize your offerings using the tips we have curates, else, your hard work will go in vain. So, go on and get ready to boost your business in the Middle East with Amazon.

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