Understanding Taxable Supplies Under UAE VAT The UAE VAT system does not treat every sale or service in the same way. Some supplies are taxed at the standard 5% VAT rate, some are zero-rated, some are exempt, while others fall under special VAT treatments such as the...
Dropshipping Business in the UAE: How to get started
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Dropshipping is an online retail business and is currently one of the fastest-growing business models globally, especially in the UAE. How does dropshipping work? The buyer makes an order through an online shop and the seller finalizes the transaction by…
Dropshipping is an online retail business and is currently one of the fastest-growing business models globally, especially in the UAE.
How does dropshipping work?
The buyer makes an order through an online shop and the seller finalizes the transaction by transferring the order to the store where the original product was assembled. The supplier processes the order and sends it directly to the consumer. The online store reimburses the cost of goods at the wholesale price and earns profits on the margin. The seller does not receive or handle the physical goods at any time.
How do you get started with your dropshipping business in the UAE?
Start your dropshipping business by following these six easy steps.
- Choose a product that you would like to sell.
- Find a trusted supplier/wholesaler.
- Choose a platform that would be the best to trade on.
- Obtain the license in a jurisdiction, with an activity that will make you eligible to sell the concerned products. This will usually be a specific trading activity in combination with e-commerce.
- Create your online store and start posting your products.
- Set up ads for your products/shop.
What are the most famous platforms for Dropshipping in the UAE?
- Shopify
- Amazon
- Wix
- Magento
What do you need to know about dropshipping business in the UAE?
There is no activity such as “dropshipping“. The activity label will depend on the products that you plan to trade with. In some cases (with non-regulated products) there are no third-party approvals required and both Mainland and Freezone jurisdictions (depending on the Freezone) might be suitable for this business model.
With the Dropshipping business model, you won’t have to worry about managing your products or finding a storage space for them. Each time a customer makes an order through your store, you will purchase the product from your wholesaler, and then it will be shipped directly from your supplier to your customer.
“Dropshipping” is a commercial activity. The company’s legal structure will be a Limited Liability Company(LLC) instead of a Sole establishment or Civil company, providing you with limited liability protection that gives you more benefits. In other words, the owner’s personal assets will be protected from business debts and lawsuits against the business.
To learn more, contact us
📧 hello@bizzmosis.com ☎️ +971 4 568 6522 📞 +971 52 979 8169
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