How to Sell on Amazon KSA and UAE Without a License

Nov 09, 2023

Introduction

The dynamic e-commerce landscapes of the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) offer a goldmine of opportunities for Amazon sellers. Whether you're a seasoned e-commerce merchant or a newcomer, understanding the intricacies of these markets is crucial for success. This detailed guide provides insights and strategies for effectively expanding your business into these Amazon KSA and UAE.

 

1. Licensing Requirements for Selling in UAE and KSA Marketplaces:

Embarking on your Amazon journey in the UAE and KSA begins with understanding the licensing requirements. The good news is that for residents or businesses in specific countries, acquiring a local business license isn’t necessary to start selling in these markets. This significantly lowers the entry barriers, allowing a smoother transition into these marketplaces.

In the case of Amazon UAE, you are able to register as a seller if you’re a resident or business establishment in one of the following countries:

Afghanistan	Dominican Republic	Lebanon	Romania	Venezuela
Albania	Ecuador	Lesotho	Russia*	Vietnam
Algeria	Egypt	Liberia	Rwanda	Yemen
Angola	El Salvador	Libya	Saint Kitts and Nevis	Zambia
Antigua and Barbuda	Equatorial Guinea	Liechtenstein	Saint Lucia	Zimbabwe
Argentina	Eritrea	Lithuania	Saint Vincent and the Grenadines
Armenia	Estonia	Luxembourg	Samoa
Australia	Eswatini	Macedonia	Sao Tome and Principe
Austria	Ethiopia	Madagascar	Saudi Arabia
Azerbaijan	Fiji	Malawi	Senegal
Bahamas	Finland	Malaysia	Serbia
Bahrain	France	Maldives	Seychelles
Bangladesh	Gabon	Mali	Sierra Leone
Barbados	Gambia	Malta	Singapore
Belarus*	Georgia	Marshall Islands	Slovakia
Belgium	Germany	Mauritania	Slovenia
Belize	Ghana	Mauritius	Solomon Islands
Benin	Gibraltar	Mexico	Somalia
Bhutan	Greece	Micronesia	South Africa
Bolivia	Grenada	Moldova	South Sudan
Bosnia and Herzegovina	Guatemala	Mongolia	Spain
Botswana	Guinea	Montenegro	Sri Lanka
Brazil	Guinea-Bissau	Morocco	Sudan
Brunei Darussalam	Guyana	Mozambique	Suriname
Bulgaria	Haiti	Myanmar	Sweden
Burkina Faso	Honduras	Namibia	Switzerland
Burundi	Hong Kong	Nauru	Taiwan
Cambodia	Hungary	Nepal	Tajikistan
Cameroon	Iceland	Netherlands	Tanzania
Canada	India	New Zealand	Thailand
Cape Verde	Indonesia	Nicaragua	Timor-Leste
Central African Republic	Iraq	Niger	Togo
Chad	Ireland	Nigeria	Tonga
Chile	Israel	Norway	Trinidad and Tobago
China	Italy	Oman	Tunisia
Colombia	Jamaica	Pakistan	Turkey
Comoros	Japan	Palau	Turkmenistan
Costa Rica	Jordan	Panama	Tuvalu
Cote d'Ivoire	Kazakhstan	Papua New Guinea	Uganda
Croatia	Kenya	Paraguay	Ukraine
Cyprus	Kiribati	Peru	United Arab Emirates
Czech Republic	Korea (South)	Philippines	United Kingdom
Democratic Republic of the Congo	Kuwait	Poland	United States
Denmark	Kyrgyzstan	Portugal	Uruguay
Djibouti	Laos	Qatar	Uzbekistan
Dominica	Latvia	Republic of the Congo	Vanuatu

 

And in the case of Amazon KSA, you can register as a seller if you’re a resident or business establishment in one of the following countries:

Algeria	Germany	Malaysia	Sweden
Austria	Greece	Malta	Syria
Azerbaijan	Hong Kong	Mexico	Tajikistan
Bangladesh	Hungary	Netherlands	Tunisia
Belarus*	India	Pakistan	Turkey
Bulgaria	Ireland	Poland	Turkmenistan
China	Italy	Portugal	Ukraine
Cyprus	Japan	Romania	United Arab Emirates
Czech Republic	Jordan	Russia*	United Kingdom
Egypt	Kazakhstan	Saudi Arabia	United States
Ethiopia	Korea (South)	Singapore	Uzbekistan
France	Kyrgyzstan	South Africa	Venezuela
Georgia	Luxembourg	Spain	Vietnam

 

It is noteworthy to mention that registering as an individual rather than a business comes with certain restrictions. As such, when possible it is preferred to register as a business.

 

2. Shipping Products to UAE and KSA:

Logistics play a pivotal role in international commerce. To effectively ship your products to the UAE and KSA without a trade license, using Importer on Record (IOR) services is highly recommended. An IOR handles the complexities of customs clearance, ensuring compliance with local regulations, and managing duties and taxes. This service minimizes the challenges of international shipping, ensuring your products reach these new markets without unnecessary delays or legal hassles.

Effectively, Importer on Record services offered by freight forwarders will reduce the barriers needed for you to import products into UAE and KSA. Upon import, the IOR will be responsible for paying VAT and Customs Duty on your behalf. These charges are usually then charged back to you as their client.

Alternatively, if you have a license in UAE and KSA, you can register as an importer yourself. Find out more about how to register as an importer on the following link.

 

3. Optimizing Order Fulfillment: Utilizing Fulfillment Centers for Amazon FBA and FBM Orders:

For Amazon sellers, understanding and making the most of fulfillment options is key to operational efficiency. Amazon’s Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) offer distinct advantages.

In FBA, Amazon takes charge of storage, packaging, shipping, and customer service, significantly reducing the seller's workload. However, keep in mind that Amazon will initially restrict the amount of stock that you can hold within their warehouse. For that purpose, you would need to work with a fulfillment center in UAE and KSA to hold and replenish the remainder of your inventory. Fulfillment centers can also handle the labelling and FBA order prep service for replenishing Amazon warehouses in UAE and KSA.

For FBM sellers, partnering with local fulfillment and warehousing services in the UAE and KSA can be a game-changer. Fulfillment and warehousing companies can help pick, pack and deliver orders directly to customers. These centers not only streamline order processing but also reduce shipping times and costs, ultimately enhancing customer satisfaction.

 

4. Streamlining Your Presence: Using Amazon's Build International Listing Feature:

Expanding your business into new markets is made easier with Amazon's Build International Listing (BIL) tool. This feature allows for efficient duplication of your existing product listings onto other Amazon marketplaces, including the UAE and KSA. The BIL tool facilitates price synchronization and inventory management across different regions, making it easier to maintain a consistent and professional online presence in multiple markets.

More importantly, the Amazon BIL Tool allows you to migrate reviews and purchases from previous Amazon listings into the new one. This significantly helps you rank your product on the top pages of Amazon’s search results.

 

5. Tax Compliance: Registering and Declaring as a Foreign Entity in UAE and KSA

One of the most critical aspects of international selling is understanding and adhering to tax regulations. As a foreign entity selling on marketplaces in the UAE and KSA, it’s crucial to register for and declare taxes appropriately, particularly in relation to VAT. As such, we advise sellers looking to launch into these marketplaces to register and declare VAT as foreign entities in UAE (5%) and KSA (15%).

Conclusion

Expanding your Amazon business into the UAE and KSA markets is an exciting venture that promises growth and new opportunities. With a clear understanding of licensing, shipping, fulfillment, warehousing, listing management, and tax regulations, you're well on your way to tapping into these thriving e-commerce markets. For more information on how Shorages can help, fill in the following form and a member of our team will reach out to you shortly after.

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