The luxury site is going to take off!In-depth analysis of how to make money on Amazon Middle East in 2022
March 25, 2022
Contents:
1. Excellent location, many opportunities for expansion!
2. The Middle East has many advantages and great e-commerce potential!
3. Rich in popular products, easy to earn sales!
4. More logistics support, saving time and energy!
5. Newbies come to open a store and lead the way!
1. Excellent location, many opportunities for expansion!
2. The Middle East has many advantages and great e-commerce potential!
3. Rich in popular products, easy to earn sales!
4. More logistics support, saving time and energy!
5. Newbies come to open a store and lead the way!

From the bottom of my heart, the Middle East station, the UAE station, and the Saudi station, I am foolish and unable to understand. Please ask for guidance!
I'm quite unfamiliar with the Middle East. Is it a good place to do e-commerce?


The culture of the Middle East is diverse, what is good to sell?
What is the profit margin of the Middle East Station?


Are there any preferential benefits for newbies to open a store in the Middle East?
Now, Xiaobian will answer your questions and explore the mystery of gold fishing in the Middle East's new blue ocean!

01 Which countries does the Middle East Station cover?
The UAE and Saudi Arabia are pioneers, and can also expand to many countries in the Middle East!
The UAE and Saudi Arabia are pioneers, and can also expand to many countries in the Middle East!
1 Geography of the Middle East
The Middle East refers to parts of the region from the eastern part of the Mediterranean to the Persian Gulf coast, including about 23 countries and regions including Saudi Arabia and the United Arab Emirates, covering an area of more than 15 million square kilometers.

The picture shows the Middle East region
2 Which countries does Amazon's Middle East site cover?
Middle East Station = UAE Station+Saudi Station
Since Amazon acquired Souq, the largest e-commerce website in the Middle East, in 2017, it has launched two major sites for Chinese sellers: the UAE site and Saudi site in 2019 and 2020.
Since Amazon acquired Souq, the largest e-commerce website in the Middle East, in 2017, it has launched two major sites for Chinese sellers: the UAE site and Saudi site in 2019 and 2020.
It can also be expanded to many countries in the Middle East!
That's right!Through the Amazon Logistics Export Program, sellers can expand their business to countries such as Oman, Bahrain, and Kuwait without having to deal with the complexity of international sales at no additional cost.
That's right!Through the Amazon Logistics Export Program, sellers can expand their business to countries such as Oman, Bahrain, and Kuwait without having to deal with the complexity of international sales at no additional cost.
02 I don't know about the Middle East, is it suitable for e-commerce?
Fits!Good e-commerce environment and great potential
Fits!Good e-commerce environment and great potential
1 Large population, young, and rich!
The population continues to grow
◾ UAE: The total population is expected to reach 106 million in 2024 1
◾ Saudi Arabia: The total population is expected to reach 425 million in 2040 2
◾ UAE: The total population is expected to reach 106 million in 2024 1
◾ Saudi Arabia: The total population is expected to reach 425 million in 2040 2
Rejuvenation of the population
◾ UAE: 40.4% of the population is under 30 1
◾ Saudi Arabia: 46.3% of the population is under 30 2
◾ UAE: 40.4% of the population is under 30 1
◾ Saudi Arabia: 46.3% of the population is under 30 2
Buyers are rich and GDP per capita is high
2020
GDP per capita
Global ranking of GDP per capita
AE
Approximately $3.75 million
20th
Surpassing developed countries such as the United Kingdom, France, Japan, and South Korea
Surpassing developed countries such as the United Kingdom, France, Japan, and South Korea
Saud
Approximately $1.92 million
35th
Beyond developed European countries such as Greece and Poland
Beyond developed European countries such as Greece and Poland
2 Excellent e-commerce environment
Internet penetration rate is over 74%
More than 74% of people in the Middle East have access to the Internet, with 95.4% in the UAE using the Internet1, followed by Saudi Arabia, with a penetration rate of 88.1% 2
More than 74% of people in the Middle East have access to the Internet, with 95.4% in the UAE using the Internet1, followed by Saudi Arabia, with a penetration rate of 88.1% 2
High e-commerce penetration rate
Saudi e-commerce penetration rate is as high as 90% 3, and the UAE also has a high 69% 4
Saudi e-commerce penetration rate is as high as 90% 3, and the UAE also has a high 69% 4
3 E-commerce has great potential for growth
The number of online consumers has soared
Data shows that in the past year, the Middle East ranked first in the world in terms of online consumer growth rate, reaching 5.2%, surpassing Latin America and Asia Pacific 5
Data shows that in the past year, the Middle East ranked first in the world in terms of online consumer growth rate, reaching 5.2%, surpassing Latin America and Asia Pacific 5

E-commerce volume is growing rapidly
◾ In 2021, the volume of e-commerce in Saudi Arabia increased 19% year-on-year 3. The volume of e-commerce in the UAE increased 25% year-on-year in 2021, and Amazon's net sales in the UAE increased 35% year-on-year in 2020, ranking first 4
◾ The pandemic has boosted the growth of e-commerce in the Middle East. It is estimated that by the end of 2025, the volume of e-commerce in the Middle East will reach 50 billion US dollars, with a growth rate of up to 14% 6
◾ In 2021, the volume of e-commerce in Saudi Arabia increased 19% year-on-year 3. The volume of e-commerce in the UAE increased 25% year-on-year in 2021, and Amazon's net sales in the UAE increased 35% year-on-year in 2020, ranking first 4
◾ The pandemic has boosted the growth of e-commerce in the Middle East. It is estimated that by the end of 2025, the volume of e-commerce in the Middle East will reach 50 billion US dollars, with a growth rate of up to 14% 6

4 Loved by Amazon
Amazon is very popular in the Middle East and has occupied the top 1 e-commerce site in the Middle East all year round. 7 Amazon's sales volume on the UAE site in 2020 was US$162 million, ranking first in e-commerce sales in the UAE 4
5 Customs clearance efficiency is higher than the average in West Asia 5
Efficient customs clearance between the UAE and Saudi Arabia can ensure that different types of cross-border goods complete the customs clearance process quickly without adding additional costs, and enhance cross-border competitiveness
Customs efficiency
Time required for export
Time required for import
AE
4.5 hours
12 hours
Saud
11 hours
32 hours
West Asia
64.8 hours
67.9 hours
03 If you don't know Middle Eastern consumers, what kind of online buyers are there in the Middle East?
Maybe it's different from what you think!
Maybe it's different from what you think!
1 Mainly a young population!
◾ UAE
The online shopping community in the UAE is dominated by young people aged 25-34 with financial means, accounting for 42% of the total number 3
◾ Saudi Arabia
Saudi online shopping groups are mainly young and middle-aged people, with 35 to 44 year olds accounting for 30% and 25-34 year olds accounting for 28% 3
The online shopping community in the UAE is dominated by young people aged 25-34 with financial means, accounting for 42% of the total number 3
◾ Saudi Arabia
Saudi online shopping groups are mainly young and middle-aged people, with 35 to 44 year olds accounting for 30% and 25-34 year olds accounting for 28% 3


2 Have a higher income!
◾ In the UAE, 36% of online shoppers have higher household income4
◾ Saudi Arabia, 34% of online shoppers have higher household incomes 3
◾ Saudi Arabia, 34% of online shoppers have higher household incomes 3


3 Mainly male groups
The shopping groups in the UAE and Saudi Arabia were dominated by men, accounting for 69% 4 and 58% of the total population, respectively 3


4 Clothing, shoes, and consumer electronics are popular
Saudi Arabia and the UAE have similar consumer preferences. Clothing, shoes, and consumer electronics are the top three categories for online searches and online purchases in both countries.
The picture below shows a comparison of online search and online shopping categories on the Saudi website
The top three categories in the red box are 3
The top three categories in the red box are 3


04 In the Middle East, what is more profitable to sell?
The official selection recommendations are here!Helping you sell well!
The official selection recommendations are here!Helping you sell well!
4 popular categories in the Middle East Station, master popular passwords
For families who are confused about choosing products at the Middle East Station, here are the benefits!Targeting the four best-selling categories: consumer electronics, fashion, department stores, and daily consumption, the three dimensions: high growth rate, high conversion, and continuous popularity. The 2021-2022 Amazon Middle East Product Selection and Category Trend Guide has been released! Please keep it!
Potential models, high growth rate selection!
The sales growth rate and traffic share have increased significantly over the past specific period, and the “money” power is impressive!
Drainage model, high conversion selection!
Generally speaking, it is cost-effective, has high performance, and has a low price. Through these “potential stocks” high-conversion products, it attracts customers, and sales are rising steadily!
Evergreen model, continues to be a popular choice!
The focus is on the preferences and needs of Middle Eastern consumers. Higher customer unit prices enable sellers to obtain more profitable sales opportunities!
The sales growth rate and traffic share have increased significantly over the past specific period, and the “money” power is impressive!
Drainage model, high conversion selection!
Generally speaking, it is cost-effective, has high performance, and has a low price. Through these “potential stocks” high-conversion products, it attracts customers, and sales are rising steadily!
Evergreen model, continues to be a popular choice!
The focus is on the preferences and needs of Middle Eastern consumers. Higher customer unit prices enable sellers to obtain more profitable sales opportunities!
01 Consumer electronics



02 Fashion clothing category



03 Department stores



04 Daily use category



05 Can the Middle East Station really make money?
If you calculate the cost and profit, it's really profitable!
If you calculate the cost and profit, it's really profitable!
Low commissions for 1 category
The same product is listed simultaneously on mature sites and new sites. Middle Eastern sites can generally sell at higher prices, while commissions and delivery costs are far lower than mature sites, greatly increasing profit margins!
category
Category commissions
@沙特站
@沙特站
Category commissions
AE
AE
Category commissions
North America Marketplace
North America Marketplace
Baby Products
14%
8% or 11%
8% or 15%
Beauty
9%
7% or 9%
8% or 15%
mobile phone equipment
4%
5%
8%
electronic accessories
8% or 10%
7% or 10%
8%
consumer electronics
8% or 10%
10%
8% or 15%
Home
10%
10%
15%
Kitchen
10%
8% or 10%
15%
- Middle East site commission vs mature site commission -
2 There are many logistics benefits, and the cost is lower!
[All marketplaces] FBA New Selection program
With FBA shipping, you can store your products in Amazon fulfillment centers, and Amazon will pick, pack, and ship them to your customers for same-day/next-day delivery and cash on delivery. Currently, you can enjoy the “Amazon Logistics New Product Storage Promotion Program” on Amazon Middle East. FBA sellers using the service will enjoy limited-time discounts such as storage fees and removal fees, so you can try and error new products at a low cost!
With FBA shipping, you can store your products in Amazon fulfillment centers, and Amazon will pick, pack, and ship them to your customers for same-day/next-day delivery and cash on delivery. Currently, you can enjoy the “Amazon Logistics New Product Storage Promotion Program” on Amazon Middle East. FBA sellers using the service will enjoy limited-time discounts such as storage fees and removal fees, so you can try and error new products at a low cost!
Third-party Carrier Service Project Pre-S
In order to solve the problems of high first-line logistics costs and high shipping standards in the Middle East, Amazon will launch a pre-S service project supported by a third-party logistics service provider at the Middle East Station. The project can effectively help sellers save logistics costs and improve warehousing efficiency, thereby increasing sales of popular products and new products.
In order to solve the problems of high first-line logistics costs and high shipping standards in the Middle East, Amazon will launch a pre-S service project supported by a third-party logistics service provider at the Middle East Station. The project can effectively help sellers save logistics costs and improve warehousing efficiency, thereby increasing sales of popular products and new products.
3 Low promotion costs
Compared to the fierce competition of mature sites, the new site is a “virgin land” for marketing and promotion. Compared to mature sites, there is still room for increased traffic on the Middle East site, but this has also reduced marketing competition and greatly reduced costs.
4 Free monthly rent!!!
Middle East Station = UAE Station+Saudi Station
Since Amazon acquired Souq, the largest e-commerce website in the Middle East, in 2017, it has launched two major sites for Chinese sellers: the UAE site and Saudi site in 2019 and 2020.
Since Amazon acquired Souq, the largest e-commerce website in the Middle East, in 2017, it has launched two major sites for Chinese sellers: the UAE site and Saudi site in 2019 and 2020.
5 In summary!Higher margins than mature sites
Take the UAE site and Saudi site as an example. Compared to mature US sites, with the same price, commissions and delivery fees are lower, revenue is higher, and profits are higher.
American station
AE
Saudi station
Comparison
Selling prices
$12.99
AED47.7
≈$12.99
≈$12.99
SAR48.72
≈$12.99
≈$12.99
Commission
15%
-$1.95
-$1.95
11%
-AED5.25
≈$1.43
-AED5.25
≈$1.43
10%
-SAR4.87
≈$1.3
-SAR4.87
≈$1.3
The UAE has 27% lower commissions than the US;
Saudi Arabia has 33% lower commissions than the US
Saudi Arabia has 33% lower commissions than the US
Weight Handling fee
-$3.47
-AED6.56
≈$1.79
≈$1.79
-SAR2.82
≈$0.75
≈$0.75
The UAE has 48% lower shipping costs than the US;
Saudi Arabia has 78% lower shipping costs than the US
Saudi Arabia has 78% lower shipping costs than the US
Amazon estimate
Weight Handling fee
Weight Handling fee
$7.57
AED35.89
AED35.89
AED35.89
≈$9.77
≈$9.77
SAR41.03
≈$10.94
≈$10.94
The UAE's profit is 29% higher than the US;
Saudi Arabia makes 45% more profit than the US
Saudi Arabia makes 45% more profit than the US
- Middle East site profit vs mature site profit -
*Exchange rate: 1 USD = 3.75 SAR = 3.67 AED
06 Is there support for new sellers to enter?
There is also!Teach step by step, so you can earn gold smoothly!
There is also!Teach step by step, so you can earn gold smoothly!
The Rising Star Seller Growth Plan helps you place orders quickly!
Amazon's “Rising Star Seller Growth Plan” provides one-stop support from registration to exit to help you grow rapidly, and launch online orders one step faster!Join now and you'll get:
● The latest live course, covering all stages of registration/ordering/peak season
● Share with peers, exchange operational skills and tips with sellers
● Official managers/class representatives take turns to answer questions every day
● “Star sellers” meet face to face and systematically analyze the growth experience of Xiaobai to Big Sellers
● Consult and interpret in a timely manner to avoid pitfalls
● The latest live course, covering all stages of registration/ordering/peak season
● Share with peers, exchange operational skills and tips with sellers
● Official managers/class representatives take turns to answer questions every day
● “Star sellers” meet face to face and systematically analyze the growth experience of Xiaobai to Big Sellers
● Consult and interpret in a timely manner to avoid pitfalls

The Middle East Station has so many advantages, so is it troublesome to enter the Middle East Station?
It's so easy!It only takes 2 steps to activate instantly!

Registration guide
● Required information
1. New unregistered Amazon email
2. Front and back of the corporate ID card
3. Company business license
● Time required
It only takes 15 minutes and is ready to go
● Seller Requirements
Chinese company qualifications
● Main steps:
1. Fill in the company, legal entity, etc. information in the registration process
2. Upload relevant materials
1. New unregistered Amazon email
2. Front and back of the corporate ID card
3. Company business license
● Time required
It only takes 15 minutes and is ready to go
● Seller Requirements
Chinese company qualifications
● Main steps:
1. Fill in the company, legal entity, etc. information in the registration process
2. Upload relevant materials
New Seller Onboarding Guide Video
Before entering Amazon, please read the registration guide video, prepare relevant registration materials in advance, understand the specific registration process, and help you start a store smoothly!
Hot news
Getting Started: New Seller Guide
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