How to Sell on Amazon KSA and UAE Without a License

Published on 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:

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:

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 this form and a member of our team will reach out to you shortly after.