How is Amazon's UAE site? How is the market?

The characteristic of Amazon's UAE site is that the population is at a disadvantage, but fortunately, consumers have strong purchasing power, so the purchasing power is still relatively strong. Many merchants want to do business on Amazon's UAE site, but they don't know what Amazon's UAE site is like.

How is Amazon's UAE site?

Soon after the news that Amazon planned to acquire the former Middle Eastern e-commerce giant Souq, Souq began to go downhill. Although Souq has been called the "Amazon Middle East website" for several years, there is no real Amazon Middle East website. It is understood that with the help of Amazon UAE, small and medium-sized sellers no longer need to hold a local UAE company or local ID card to enter the Middle East market. They can enter with a business license from mainland China. Now may be the best time for Chinese sellers to enter the Middle East market.

How is the market?

The UAE’s e-commerce market is expected to exceed $27.1 billion by 2022, according to industry estimates.

The United Arab Emirates is a major trading country in the Middle East. Online transactions in the UAE have increased sixfold since 2017, and one in four transactions are now completed online. In recent years, the e-commerce industry in the UAE has developed rapidly due to the development and popularity of the Internet and mobile payments in the Middle East. In 2018, consumer spending in the e-commerce sector increased by nearly 50%, and total consumer spending increased by 6%, with e-commerce contributing the most to consumer spending.

The UAE has a population of nearly 10 million, making it a densely populated country in the Middle East and a country with a high proportion of online shopping. Statistics show that online shoppers account for 66% of the UAE population, spending an average of $200. More than 60% of online shoppers have experienced cross-border online shopping.

Online shoppers in the UAE are mainly young people and women. Clothing, footwear, cosmetics and beauty products are popular categories in the local market, while toys and health products have great potential. The United States, India and China are the most popular destinations for online shopping in the UAE.

The UAE is a blue ocean market with huge potential, with a large urban population, a huge consumer group and strong demand. In addition, there are still few platforms on the market. However, there are still some problems in the UAE market. For example, the Middle East market is now almost a battlefield for big predators and unicorns, with new platforms emerging in an endless stream and fierce competition. In addition, logistics issues have not been properly resolved, especially during the peak period of Ramadan, with insufficient logistics capacity, rising freight rates, and even if you can create your own logistics chain, you may not be able to obtain a license, etc.

Some merchants on Amazon have chosen the UAE site. The market situation of this site is not understood by some outside merchants, so you must understand it before entering this market. I hope the above content will be helpful to everyone.

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