Menu

What about eCommerce in the UAE?

This is a tricky subject here in the UAE..

Building an online eCommerce store isn't difficult, taking payment unfortunately is. There are are a few banks that can offer a merchant account however the requirements they have very soon force most small businesses out of the running, the majority have a "security deposit", a security measure against chargebacks from fraudulent transactions, these security deposits start at a whopping US$25,000.00 (92,000AED), combining this with the usual 2.5% (ish) per transaction charges and the cost of the site development makes the whole thing a little costly.

paypalThere are however alternatives, recently PayPal have launched in the UAE and whilst it is still not possible to transfer PayPal funds to your UAE bank account you can for a US$5.00 fee transfer the funds to your debit or credit card.

Monthly Sales Price Per Transaction
$0.00 USD - $3,000.00 USD 3.4% + $0.30 USD
$3,000.01 USD - $10,000.00 USD 2.9% + $0.30 USD
$10,000.01 USD - $100,000.00 USD 2.7% + $0.30 USD
> $100,000.00 USD 2.4% + $0.30 USD

All in all this doesn't sound too bad but you have do some careful calculations, PayPals fees for monthly transactions upto US$3000 is 3.4% plus a US$0.30 per transaction fee, so if your products are high volume and low profit it could end up costing you quite a bit! A point to note is if you are selling "cross border" e.g. buyers from outside the UAE the fees go up to 3.9%.

Either way The Zoo Group can help you with the setup and store build.