How to sell products online in dubai
Selling goods through social media in Dubai/the UAE
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hello again in this video i'm going to
talk about some general points to
consider when it comes to selling goods
or items in the uae through social media
platforms now whether it's food clothing
household consumables homemade
handicraft items beauty products or any
other type of tangible goods
selling these sorts of items online
through social media platforms as part
of some kind of business operation
regardless of whether it is small scale
or not
is ultimately considered to be an
e-commerce business activity and is
therefore subject to certain rules and
regulation
in addition there are also consumer
protection issues arising from this
which can be important to keep in mind
as well
i'm going to briefly look at this under
the following five general points
number one the legal position around uae
residents selling goods or items online
through social media platforms number
two
what the potential risks are for doing
it unlawfully
number three
what are some of the licensing options
number four does it appear to be
happening more often i'll touch on some
examples
and number five what are some of the
current trends in this space
so let's explore this topic a bit more
in this video
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welcome back i'm yusuf ahmed and i'm an
international lawyer originally from
scotland and the uk
my boutique practice specialises in all
aspects of commercial law
my work often involves international or
multi-jurisdictional elements if you
require any advice guidance or
assistance with anything then feel free
to get in touch
the exponential and inexorable growth of
the internet and in particular the
various social media websites and
platforms has provided almost limitless
potential for connectivity on both a
personal level and also in terms of
earning a bit of extra income through
selling things online
social media platforms have rapidly
become popular mediums through which
people can advertise certain goods and
products through their personal page
connect with others and then sell their
goods or items quickly and easily
it's a very easy and simple way to start
off a small kind of enterprise in this
way from the comfort of your own home
whether it is selling food items such as
home-baked cakes or pastries for example
or custom-made clothing that has been
hand-stitched or put together in some
special way perhaps with a unique design
homemade handicraft items or even beauty
products which could be homemade or are
being sold as part of an existing stock
there are so many different kinds of
variations to this
however is it really as simple and
straightforward as posting and selling
such goods or items through your social
media page or profile
i would highlight that if you are going
to remember anything from this video it
should be this key takeaway point
any person conducting any form of
economic or business activity in the uae
needs to have a relevant license issued
by a relevant licensing authority
this overarching general rule applies to
anyone in the uae resident or otherwise
and includes those selling goods or
items through social media platforms as
part of some kind of business or
enterprise
it is essentially considered to be a
commercial activity and therefore is
subject to certain licensing
requirements
it is all too easy to be tempted into
selling goods or items through popular
social media platforms given how quickly
and easily it can be done
however from a legal standpoint it's not
quite as simple and straightforward as
posting and selling the goods or items
through your social media page or
profile
under the letter of the law a relevant
license is required
there are clear risks involved for
anyone doing this in the uae without a
relevant license
financial penalties for example could
range anywhere between 20 000 durhams to
half a million durhams depending on the
nature and extent of the violation
in addition if there are circumstances
where there is a combination of serious
violations
then the penalties could be higher
to minimize any potential risk in this
regard it makes sense to simply acquire
a relevant license which in many cases
can be obtained in a relatively cost
effective way so staying on the right
side of the law does not necessarily
have to be an expensive endeavor
given that having a relevant license is
a requirement here there are various
options available
for example the dubai department of
economic development also known as the
dubai ded has made available e-trader
licenses as part of an initiative to
help strengthen dubai's position as an
e-commerce hub and this type of license
is specifically aimed at in individuals
looking to sell goods or items online
including through popular social media
platforms so that's an option and one of
the potential advantages of that type of
license is that there may be some more
flexibility available on some of the
usual red tape requirements such as
having to have registered physical
premises or commercial storage for goods
or items the precise nature and scope of
the specific advantages is subject to
change from time to time so it is always
a good idea to seek out advice if you
need some guidance or up to date
information about it other deds and
other emirates have probably taken
similar steps in making the same or
similar licenses available
certainly the dubai ded has recognized
the ease in which people can sell goods
or items through social media platforms
and has perhaps also seen how this has
been going on increasingly and as such
has come up with flexible licensing
options in order to facilitate and
regulate the sale of goods or items
through those channels
a number of free zones in the uae also
offer inexpensive e-commerce licenses
which provides even more choice
especially for those who might like to
sell goods or items to a target market
or focus on cross-border selling it
might also be worth exploring whether a
relevant freelancer permit is available
from a licensing authority which covers
selling goods or items through social
media platforms
i've made a video about freelancing in
dubai so if this is something that is of
interest to you then you might like to
have a look at that video as well to
learn a little bit more about how
freelancing works in dubai a link to
that video is in the description box
below
now coming back to the point on
licensing options it's also worth
highlighting that some folk sell
perishable items through social media
platforms such as cakes or other baked
foods
where these types of consumable items
are being sold in addition to the
requirement of a license additional
approvals will typically be needed for
those selling these sorts of items this
really stems from a consumer protection
standpoint as the sale of baked food
items needs to meet strict hygiene
requirements to ensure that it is safe
for consumption
as such individuals selling these sorts
of items will need relevant external
approvals and certifications from a
relevant regulator or authority
the importance of being properly
licensed cannot be understated i have
come across several examples of people
turning to selling things through social
media platforms selling things like home
craft cakes and baked food items as well
as the other examples that i mentioned
earlier but because they are not
properly licensed then they can't grow
their business properly
and
aside from the risks that they are
taking by doing this without having an
appropriate license in place if one of
their customers ends up falling ill from
baked food items sold to them then that
could become a very messy situation all
around and the absence of a license
could be the least of their worries
i can also remember another example
where stay at home moms were found to be
making tailor-made clothes accessories
and selling some beauty products they
were basically running garment and
beauty businesses from their homes and
selling these items through social media
platforms
conducting this sort of business might
appear seemingly innocuous however
without an appropriate license it is
ultimately risky business
even before the pandemic there was an
increasing trend in people utilizing
popular social media platforms to sell
goods or items often as a side hustle to
begin with before turning it into a
small enterprise
following the unprecedented global
lockdown restrictions this trend only
increased even more
although most if not all of the
restrictions around physical movement
etc are now in our rear view mirror
selling things through social media
platforms is arguably still as popular
as ever and with there having been a
common mainstream shift towards working
from home or hybrid or blended working
arrangements in general it doesn't look
like this will let up anytime soon
on the contrary perhaps it could be
likely to be seen as an ongoing trend
many people do choose to take advantage
of the relative ease of selling goods or
items through social media platforms
it's a quick easy and efficient way to
earn some income with little if any cost
attached to it
all of which makes it a very appealing
and attractive proposition
it's easily tempting and as a result
some folk inadvertently end up assuming
certain risks typically as a result of
being unaware of the legal requirements
around it in the uae
in my experience once folk in the uae
become aware of the legal aspects around
selling goods or items online whether
that is through popular social media
platforms or otherwise they usually
become keen to make their business legal
and compliant with the relevant rules
and regulations applicable to their
business activities
that is when they usually tend to reach
out for expert advice more often than
not they just need someone to help guide
them with clear and sound advice on what
they need to do and then help them do it
and that's where someone like myself can
step in to help advise and assist those
entrepreneurs to get set up properly
with their business and then be there to
assist them with the journey as and when
needed
all right that's it for this one i hope
you found this video useful any
questions or queries then let me know
and of course if you require any advice
or assistance with anything then feel
free to get in touch you can send me an
email with your inquiry my email address
is in the description box below and i
would be delighted to assist you
thanks a lot for watching and see you
next time
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