The Amazon Sellers Guide to Mastering Deliveries in the UAE

E-commerce growth in the UAE is on a rapid ascent. Industry insiders predict that the market will reach $17 billion in 2025, thanks in large part to consumers preferring the convenience and speed of online shopping. The growing adoption of smartphone use and widespread internet access also contribute to this explosive growth.

What does this e-commerce boom mean for the Amazon seller in the UAE?

Getting Ahead With Logistics

The surge in e-commerce growth means two things for you: opportunities and challenges. With more people shopping online, you’re bound to improve revenues and profits. But a boom in this sector also creates competition. 

Other sellers might offer a better price point, and some might entice with convenient payment methods. For example, 90% of sellers in the UAE have declared that they will offer a Buy Now, Pay Later plan.

One other area that will give you a competitive advantage is logistics. How well and how fast your products get delivered to customers can put your online business ahead of the competition. 

Consumers want what they purchase as soon as they can get it; many will prefer next-day delivery, which used to only be offered on occasion. Today, with Amazon’s commitment to “fast delivery should be an everyday experience, rather than an occasional indulgence,” next-day fulfillment has become a standard.

Logistics is not just about giving what your consumers want. Logistics management is also just good business because it can affect your bottom line. When inventory doesn’t move, you risk tying up capital in unsold stock, increasing your storage costs. Unsold stock could also lead to expired or obsolete products, which means reduced profit margins or total loss.

4 Logistics Tips for Amazon UAE Sellers

Efficient logistics contributes to smoother operations, enables faster cash flow, and delivers a better customer experience. These factors are critical to staying competitive in the UAE’s fast-growing e-commerce space.

Follow these steps to master deliveries and edge out the competition.

1. Choose the right fulfillment method for your business.

Amazon sellers have three options when it comes to fulfillment:

• Fulfillment by Amazon (FBA) - Amazon FBA UAE offers the easiest and most seamless way of getting your products to your customers. Amazon does everything: they’ll pick, pack, and ship on your behalf. They’ll also store your products at their warehouses. Amazon will also take care of customer queries, including returns.

• Amazon Easy Ship in the UAE - Easy Ship is an end-to-end delivery service for Amazon sellers. Amazon picks up your products at your location and delivers them to your customers. With this fulfillment method, you’ll store and pack your own products. You can choose to have Amazon handle returns.

• Self-Ship - This is when you do everything yourself, from storage to delivery. You have to use a third-party logistics service, negotiate better courier rates and track packages to ensure timely deliveries. You can choose to hand over the returns handling to Amazon.

Which fulfillment method is right for you? If you already have a storage facility, you can go with Easy Ship. If your products sell fast and you don’t have a facility, choose FBA. If you’re still growing the business and what you sell caters to a niche market, go with Self-Ship for the time being. 

2. Improve your packaging and follow Amazon guidelines.

Packaging offers two advantages: product differentiation and cost-efficiency. 

In terms of branding and marketing, packaging that stands out from other products can attract customers and strengthen your identity in a highly competitive marketplace. Consumers want products that come in appealing packages, which means it can create a positive first impression.

In terms of cost-efficiency, the right packaging ensures protection and preservation while the product is in storage and when it goes out of the warehouse for delivery. If your packaging is delicate or breakable, the product may be damaged while in transit. Damaged products delivered to your customers can lead to negative reviews, and consistent negative reviews impact brand credibility. What all of this translates to is cost for your business.

Whether you’ve picked FBA or Easy Ship, both methods come with Amazon's packaging guidelines. Amazon specifies the material and size for certain products. When your packaging fails to meet the guidelines, the warehouse might not accept it for storage.

3. Optimize your inventory to avoid stockouts or overstock.

A balanced inventory is crucial for a seamless operation and profitability. The optimal state for inventory is to avoid stockouts or overstock.

A stockout means you’ve run out of inventory, which means customers can’t get what they need. Stockouts happen if:

• You didn’t order enough products.

• You’ve ordered the wrong products.

• Your supplier failed to meet delivery deadlines.

• Demand for your products suddenly spikes.

If you can’t fulfill your orders, you lose sales and reduce revenue.

Overstock is when you have too much inventory. This can happen because your warehouse might not have enough space, or there’s a sudden dip in demand for your products. 

Excess inventory means costs: the cost to store, the cost to liquidate, and the cost to move. Overstock doesn’t just add to your overhead; it could also affect your profit.

How do you prevent both from happening? 

Review your stock and set reorder alerts to stay ahead and maintain consistent fulfilment. And use demand forecasting tools to keep your inventory levels aligned with actual market needs.

4. Simplify your returns process.

Once a product is sold and delivered, the after-sales process kicks in. Part of that process could be handling returns. Shoppers return about 15% to 30% of products they purchase online. 

Customers return products for the following reasons:

• Product came damaged

• Shopper found a better price elsewhere

• Buyer’s remorse

• Ordered the wrong product

• Product did not match the description

• Product was the wrong size

Although returning purchased products may be a loss, you can turn it into an opportunity. It can be an opportunity to improve your product’s packaging (so it’s not damaged when delivered), to improve photos of your products (so customers know exactly what they’re getting), and to provide sizing information (so customers have the information they need).

You can also turn this loss into a gain by simplifying the returns process. An easy and convenient returns policy improves the shopper experience, encouraging the consumer to make a repeat purchase. This would also go a long way toward enhancing your brand image. 

A good way to ensure a seamless return experience is to opt for FBA or Easy Ship.

E-commerce in the UAE is booming, and insiders expect this growth to continue. Leverage the tools available on Amazon, and your online retail business will benefit from the rise of e-commerce in the region.