How hard is it To Start an E-commerce Business in Dubai

Start an E-commerce Business in Dubai

Dubai is ever-growing in e-commerce business. So if you want to start one, be aware of the industry first. 

A highly potent tool that can hold your success prisoner eternally is e-commerce knowledge. Sadly, the majority of people start businesses without having any knowledge about e-commerce whatsoever.

Some may be aware of the significance of seemingly little details like content development, shopping carts, and email marketing but may not fully appreciate it. Yet, simple actions can increase traffic to your website and ultimately boost sales.

So what can you do to ensure that your online business in Dubai is successful? What obstacles might you encounter, and how can you overcome or avoid them altogether? Is it hard to start an e-commerce business in Dubai?

Challenges faced in E-commerce Business in Dubai

One-third of the world's population uses online shopping. Thus, companies who want to offer these services should be aware of the many variables and difficulties involved in operating an e-commerce company. Here are six of the most significant challenges that e-commerce platforms encounter below.

  • Trust

Many people might need help choosing a website they can trust. Customers frequently struggle with exposing their personal information on the internet, such as their delivery address and financial information, and selecting whether to believe that the things sold are actually what they desire. 

75% of online buyers, according to a Plytix report, will only give their personal information to a site they trust. In addition, many worry about the possibility of being tricked by unreliable websites. Therefore, E-commerce merchants must be open and honest with their information, have a refund policy, and provide contact information if they want to earn customers' trust.

Learn more about the 5 steps of launching a successful e-commerce business.

  • Competition

E-commerce retailers compete with one another constantly because there are so many online companies to select from.

Online retailers must ensure that their products stand out from the competition and are cheaper, given that the industry average conversion rate is only 3% (Business News Daily, 2019). Since online users prefer user-friendly websites, e-commerce businesses compete in this area. A study of online shoppers revealed that nearly 50% do so if the costs are too high, while 17% do so if the checkout process is too time-consuming or difficult.

  • Social Proof

To attract more customers, e-commerce platforms need to maintain their reviews and ratings. People who shop online read product reviews and store ratings before making a purchase, much like they would via word of mouth.

According to statistics, consumers read close to ten evaluations on average before making a purchase. They are more likely to trust a company if the reviews were written recently (within the past two weeks). Customers are far more likely to buy from your online business when they have social evidence that other customers have had positive experiences with your services or items.

Learn more about the 8 steps to brand your e-commerce business successfully

  • Payment Process

Others prefer making payments through digital wallets like PayPal, while some prefer cash-on-delivery. Therefore, E-commerce companies should provide a range of payment options to accommodate the preferences of various customers to prevent abandoned shopping carts and the loss of prospective loyal customers.

  • E-commerce Frauds

Platforms for e-commerce should take the appropriate precautions to avoid financial losses or legal problems from false accounts. Unfortunately, due to the pandemic and the rise in online buying, e-commerce enterprises saw an increase in fraud assaults in just 2020. Results indicate that there have been over a billion fraud attacks in the first half of 2020, resulting in a revenue loss of more than $140 million.

So this is not only setting up your business but some steps that should be taken after incorporating e-commerce in Dubai

Businesses must fulfill the same standards for online shoppers as they do for in-person customers if they want to succeed in e-commerce. As a result, E-commerce retailers are constantly competing to see who can provide their website visitors more to increase conversion rates and satisfy their customers' buying desires.

Our Role

There are challenges in forming a business or getting an e-commerce trade license in Dubai.

You can get help with the procedure from Business Setup Worldwide.

Furthermore, you can obtain your e-commerce trade license with the help of our business consultants.

Contact us for any additional information. We'd be happy to assist you.


1. What was the growth rate of e-commerce business during the pandemic?

50% to $870 billion.

2. Which are the top e-commerce marketplaces in the world?

China ($2.78 trillion)
United States ($843 billion)
United Kingdom ($169 billion)

3. Where is e-commerce expanding most quickly?

Asia, Australia, and the Americas were predicted to experience the most significant rise in e-commerce sales in 2022. With online sales rising by more than 36% and 34%, respectively, Singapore and Indonesia would take the lead.