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Answers · 16 questions

E-commerce questions from UAE sellers

Sourced answers on cash on delivery, failed deliveries, returns, Tabby and Tamara, Amazon.ae and noon, and the UAE sale calendar to mid-2027.

01How big is the e-commerce market in the UAE?

EZDubai Logistics Hub, working with Euromonitor International, put the UAE e-commerce market at AED 42.2 billion (USD 11.5 billion) in 2025, as reported by Gulf Today on 28 September 2026. It's a logistics hub's report rather than a government statistic, and other estimates differ widely because they count different things, so name the source whenever you quote the figure.

02How do I start selling online in the UAE?

Sort the licence first, then payments and delivery, then ads. Ask the licensing authority which licence covers online selling for your activity before you take a single order. Then set up card payments, a courier that handles cash on delivery and returns, and a WhatsApp number on every page: DataReportal, citing GWI's Q2 2026 survey, reports that 84.1% of UAE internet users aged 16 and over said they used WhatsApp in the past month.

03How much does an e-commerce licence cost in Dubai?

We won't print a figure we can't verify. The fee depends on whether you register on the mainland or in a free zone, and on which activities the licence lists. Get the price in writing from the licensing authority or the free zone you're considering, and ask whether the licence covers selling online, storing stock and delivering to customers, and what renewal costs. A number from a blog isn't a quote.

04Should I offer cash on delivery in the UAE?

Offer it only after you've priced the failures. Add up what one failed order costs you, meaning outbound shipping, return shipping and handling, multiply by the share of cash orders that fail, and compare the result with the margin on a prepaid order. If cash orders still earn more, keep them and confirm each one before dispatch. If they don't, limit cash on delivery to repeat customers or switch it off.

05Is cash on delivery disappearing in the UAE?

Its use is falling, but we couldn't find a credible figure for what share of orders it still makes up. Checkout.com's State of Digital Commerce in MENA 2025 report says cash on delivery usage in the UAE has fallen 53% since 2020. That measures a drop in use, not a current share, so check your own order data before you drop it.

06What is return to origin (RTO), and what's a normal rate?

Return to origin (RTO) is when a delivery fails and the parcel goes back to the seller. Quiqup, a UAE delivery company, said in May 2026 that for many UAE merchants RTO rates sit between 20% and 35%, and that a realistic target is under 10%. That's a delivery company's estimate, not an official market figure, so measure your own rate before you set a target.

07How do I cut failed cash on delivery orders?

Confirm every cash order before it ships. Quiqup, a UAE delivery company, advises WhatsApp order confirmation, nudges towards prepaying and address validation, and points out that a returned parcel means paying for logistics twice. In practice that's a message with the address and total, a deadline for the customer to reply, and no dispatch until they do. Track the share of orders that come back, every week.

08What should my returns policy say?

It should state how long customers have, what condition the item must be in, who pays return shipping, and how and when the refund arrives. Say how cash on delivery orders are refunded, because there's no card to credit: bank transfer or store credit. Show the policy on the product page and at checkout, not only the footer, and confirm what UAE consumer law requires with the Ministry of Economy before you publish it.

09Should I offer Tabby or Tamara at checkout?

Add buy now, pay later if your baskets are big enough that shoppers hesitate at checkout, then compare conversion before and after and set the provider's merchant fee against your margin. Wamda reported on 14 September 2026 that Tabby, which is headquartered in Saudi Arabia, has 25 million registered users and 70,000 business partners across its markets: group figures, not UAE ones. Gulf News reports that Tabby and Tamara purchases reach UAE credit reports from July 2026.

10Should I sell on Amazon.ae, noon or my own store?

If nobody knows your brand yet, start on a marketplace. If you already have customers or an ad budget, build your own store first and add a marketplace later. A marketplace rents you traffic on its terms and fees, while your own store gives you the customer relationship. Be wary of anyone quoting a market share for Amazon.ae or noon, because no credible current figure turned up for either.

11What does Amazon.ae mean, and what happened to Souq?

Amazon.ae is Amazon's store for the UAE, and .ae is the UAE's country domain. Amazon announced the launch of Amazon.ae on 1 May 2019, when Souq became Amazon.ae in the UAE. The Associated Press reported that noon went live in the UAE around 1 October 2017.

12What ROAS does an online shop need to break even?

Divide 1 by your margin after product cost, delivery, payment fees and returns. Say that margin is 25% of order value: break-even ROAS is 4, so every AED 1 of ad spend must bring back AED 4 of orders just to cover itself. Count failed cash on delivery orders as lost revenue before you divide, or your dashboard will report sales you never banked.

13When is White Friday in 2026?

Expect late November, starting around Friday 27 November 2026. Amazon Ads says White Friday begins on the Friday after US Thanksgiving, which gives 27 November in 2026, but as of 7 November 2026 we couldn't confirm dates announced by Amazon.ae or noon. Al Bayan reported that Amazon.ae's 2025 sale ran 20 to 30 November, so plan for a window that opens before the Friday and confirm each marketplace's dates before you schedule ads.

14When does the Dubai Shopping Festival run?

The 32nd Dubai Shopping Festival runs from 4 December 2026 to 17 January 2027, according to its organiser, Dubai Festivals and Retail Establishment, part of Dubai's Department of Economy and Tourism. That's a little over six weeks, so plan separate offers for separate weeks rather than one long discount, and ask the Department of Economy and Tourism whether your promotion needs a permit.

15When is Ramadan in 2027, and do online sales rise?

Ramadan 2027 is expected to begin on 8 February 2027, according to the UAE Astronomy Centre's projections reported by The National, subject to moon sighting. Admitad, an affiliate network, said online sales in the UAE rose about 20% during Ramadan 2025, measured as gross merchandise value, Khaleej Times reported in February 2026. Treat the date as expected, not fixed, and have stock and creative ready before it.

16Which UAE holidays should an online shop plan around?

Plan around National Day, Eid Al Fitr and Eid Al Adha, and confirm each date before you schedule anything. The UAE government portal (updated 29 October 2026) lists National Day, now celebrated as Eid Al Etihad, as a two-day holiday on 2 and 3 December, though Gulf News warned in August that 2026 arrangements weren't yet confirmed. The National expects Eid Al Fitr on 9 or 10 March 2027, and Khaleej Times expects Eid Al Adha on 16 or 17 May 2027, subject to moon sighting.

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