Business Setup & Licensing
Do I need a license to sell online in the UAE?
Yes. To legally sell products or services online in the UAE, you must hold a valid e-commerce or trade license, regardless of whether you sell through a website, social media, or online marketplaces. Any form of online selling is considered a commercial activity under UAE regulations.
Businesses can then focus on growth-related areas such as Ecommerce marketing, or paid advertising. At this stage, working with an experienced agency like Scarlet Media can help brands transition smoothly from legal setup to customer acquisition and revenue generation.
What type of license should I get (Free Zone vs Mainland vs E-Trader)?
The right license depends on your business structure and target market. Free Zone licenses are popular for online-first businesses and international founders, Mainland licenses allow unrestricted access to the UAE market, and E-Trader licenses are designed for small-scale or individual sellers.
After this, businesses can move on to strategic planning such as Ecommerce consulting, go-to-market strategy, and paid channel selection. This is where Scarlet Media step in, helping brands align their business model with scalable marketing and performance-driven growth.
Can I sell online without a physical store in the UAE?
Yes. You can operate a fully online business in the UAE without a physical store, as long as you have the appropriate license. Some licenses may still require a virtual office or flexi-desk, but a retail location is not mandatory.
This online-only model allows brands to allocate more resources to Ecommerce marketing and paid advertising rather than physical overheads. Once the legal structure is in place, Scarlet Media can support businesses with ecommerce-focused marketing strategies designed to drive traffic, conversions, and long-term growth.
How long does the business setup and licensing process take?
The setup timeline varies based on the license type. An E-Trader license can take a few days, while Free Zone and Mainland licenses may take anywhere from one to several weeks, depending on approvals and documentation.
Can a non-resident get an e-commerce license in the UAE?
Yes. Many UAE Free Zones allow non-residents to establish an e-commerce business with full foreign ownership. However, certain operational steps, such as opening a bank account, may require local presence or residency.
Costs & Financials
How much does an e-commerce license cost?
E-commerce license costs in the UAE typically range between AED 5,000 to AED 15,000+ per year, depending on whether you choose a Free Zone, Mainland, or E-Trader license. The final cost can vary based on visa quotas, office requirements, and additional services included in the package.
Do I need to register for VAT?
Yes. If your business’s annual taxable turnover exceeds AED 375,000, VAT registration is mandatory, and you must charge 5% VAT on applicable goods and services. Businesses below this threshold may register voluntarily, which can sometimes be beneficial depending on cost structures.
After VAT registration and compliance are in place, companies can move forward with scaling activities. At this stage, Ecommerce consulting become critical, and Scarlet Media supports brands in aligning marketing growth with financial and operational readiness.
Can I sell on marketplaces like Amazon.ae or Noon with my license?
Yes. With a valid UAE business license, you can sell on marketplaces such as Amazon.ae and Noon, provided you complete their seller registration processes and submit the required business documents.
Once marketplace access is secured, the focus shifts from compliance to visibility and sales performance. This is where Ecommerce marketing come into play, and Scarlet Media helps brands optimize listings, plan paid campaigns, and scale marketplace-driven revenue effectively.
Operations: Products, Compliance & Logistics
Do products need special approvals before selling?
Yes. Certain product categories such as food, cosmetics, supplements, and medical-related items require additional approvals from relevant UAE authorities before they can be sold. These approvals are separate from your trade or e-commerce license and are mandatory to ensure consumer safety and regulatory compliance.
Once product approvals are secured, businesses can confidently move toward growth initiatives. At that point, Ecommerce consulting efforts become more effective, at Scarlet, we typically recommend launching paid campaigns only after compliance risks are fully resolved.
Must products be registered to sell legally in the UAE?
Yes. Many regulated products must be formally registered with the appropriate authorities to meet UAE standards for safety, labeling, and traceability. Selling unregistered products can lead to penalties, listing removals, or account suspensions on marketplaces.
What are the logistics and delivery considerations?
Strong logistics are essential in the UAE, where customers expect fast delivery, reliable tracking, and hassle-free returns. Choosing the right fulfillment partners and setting clear delivery policies can significantly impact customer satisfaction and repeat purchases.
Performance Marketing campaigns perform best when delivery and returns are reliable. As an ecommerce marketing agency, Scarlet Media supports brands with on-site optimization, ensuring a seamless shopping journey from product pages and checkout flows to clearly communicated delivery options, shipping timelines, and return policies.
What payment options should I offer?
Offering multiple secure payment options is highly recommended, including credit and debit cards, local digital wallets, and cash-on-delivery (COD). While COD remains popular, it can increase return rates and affect cash flow, so it should be managed carefully.
After payment systems are in place, brands can optimize their checkout experience and conversion rates. This is where our Ecommerce consulting strategies help businesses reduce friction and maximize the return from their marketing investments.
Market & Strategy
Which e-commerce business model should I choose (B2C / B2B)?
In the UAE, B2C e-commerce currently accounts for the majority of online revenue, driven by strong consumer demand, high mobile usage, and fast delivery expectations. However, B2B e-commerce is growing rapidly, particularly in wholesale, industrial supplies, and professional services, offering higher order values and longer-term contracts.
Once the business model is defined, companies can shape their go-to-market approach. With Scarlet Ecommerce consulting agency brands can align acquisition channels, messaging, and paid advertising strategies with the chosen model.
Do I need English and Arabic on my website?
Yes. Offering both English and Arabic significantly improves reach and usability in the UAE, allowing you to connect with both local customers and the large expatriate population. Bilingual websites also build trust and reflect cultural and regulatory awareness.
After language structure is in place, brands can focus on optimizing the customer journey. Paid Advertising campaigns perform more effectively when supported by localized content. As an ecommerce marketing agency, Scarlet Media helps brands with local content through culturally relevant messaging, Arabic–English content alignment.
How competitive is the UAE e-commerce market?
The UAE e-commerce market is highly competitive, with strong local players and global brands competing across categories. Success depends on more than pricing alone, user experience, brand positioning, and operational efficiency all play a major role.
Once market positioning is clear, businesses need a structured growth plan. Performance Marketing help brands stand out, scale efficiently, and compete effectively in a crowded digital landscape.
Technical & Growth
What platforms and technologies should I use?
Many e-commerce businesses in the UAE start with SaaS platforms like Shopify or BigCommerce, which offer speed, scalability, and ease of integration. Larger or more complex operations may opt for custom-built solutions to support advanced features, integrations, or multi-market operations.
As an Ecommerce consulting agency, Scarlet can help brands choose the ideal platform for your business by going through the pros and cons for their goals, while ensuring the platform is fully optimized for tracking, paid advertising readiness, and scalable growth.
How do I optimize user experience (UX)?
Strong UX starts with a mobile-first approach, fast-loading pages, and a frictionless checkout process. Local adaptations such as Arabic language support, local payment methods, and region-specific promotions further improve conversion rates in the UAE market.
How do I handle returns and customer service?
Clear return and refund policies, easy-to-find information, and responsive customer support are essential for building trust and reducing purchase hesitation. Efficient handling of returns also helps manage operational costs and protect brand reputation.
Once customer service processes are structured, businesses can confidently scale. Scarlet Media performance marketing agency helps align growth strategies with customer experience standards to support long-term retention and brand loyalty. Beyond acquisition, the team focuses on post-purchase experience optimization, connecting performance marketing insights with UX, customer journey mapping, and retention strategies.
Scarlet Ecommerce Consultants partner with brands to drive success across their e-commerce journey. Get in touch with us at +971 52 699 8809 or [email protected] for local and international projects