How to Sell on Amazon KSA and UAE Without a License

Find out how you can launch your products on Amazon marketplaces in UAE and KSA

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:

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

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