Unlocking E-commerce Success in the UAE with Omar Angri, CEO of Margin Business | TopsdrawHow to Use Amazon Customer Reviews to Elevate Shopping Experience?

Welcome to our UAE Business Compass series, where we bring you insightful conversations with industry leaders who are shaping the business landscape in the region. In this edition, we have the pleasure of interviewing Omar Angri, CEO of Margin Business. With nearly two decades of international experience in technology and e-commerce, Omar shares his expertise on navigating the UAE’s vibrant e-commerce market. This interview delves into key aspects such as market dynamics, growth drivers, strategic advice for new businesses, and future trends, providing valuable insights for anyone looking to thrive in the UAE’s dynamic e-commerce ecosystem.

Q: Could you describe the current e-commerce landscape in the UAE?

Omar Angri: In the UAE, the e-commerce sector is bustling with activity, yet there’s a noticeable gap in the market. There are plenty of small sellers managing modest sales volumes—like 30 items per month—but there aren’t enough big players. This discrepancy presents a significant opportunity for smaller sellers to scale up if they could just acquire the right knowledge or seek advice from experienced agencies. I believe there’s a critical need for these smaller entities to expand their capabilities to prevent market domination by a few large sellers, similar to the situation in the US, where the market is heavily dominated by professional sellers including a significant portion of Chinese sellers who often have direct ties to manufacturing, allowing them to offer competitive prices and quality.

Q: What do you think is unique about e-commerce in the UAE?

Omar Angri: The e-commerce scene here is uniquely influenced by local culture. It’s fascinating to see how product preferences are culturally aligned. For instance, despite not seeing many pets around, there is a substantial market for pet products, driven largely by the expatriate community. Similarly, home decor and baby products are immensely popular, reflecting the region’s family-oriented values. This cultural nuance is vital for any business looking to succeed in the UAE’s e-commerce market.

Q: What are the key trends influencing e-commerce growth in the UAE?

Omar Angri: The growth trajectory for e-commerce in the UAE is quite impressive, accelerated by the pandemic but set to continue due to broader trends. With the UAE government’s vision to grow the population significantly, the demand for online shopping will only increase. Infrastructure developments like drone delivery and flying taxis are preparing to meet this demand by enhancing delivery speeds. The region’s commitment to convenience and rapid technological advancements is making online shopping an increasingly attractive option, aligning perfectly with the global shift towards more efficient and user-friendly consumer experiences.

Q: As an expert, what foundational steps would you advise for someone trying to set up an e-commerce business in the UAE?

Omar Angri: First and foremost, identify a product you are passionate about. It’s essential to engage with products you care about rather than just selling for the sake of selling. For those starting in the UAE, I recommend registering your brand with the Ministry of Economy, despite the higher cost compared to other countries. This step secures your brand for a long time, allowing you to expand your product line and enhance your brand presence on platforms like Amazon and social media.

Simultaneously, consider taking your online brand into physical stores. The UAE market still values in-person shopping experiences, which can significantly boost brand recognition. Start online, leverage micro-influencers to gain visibility without substantial costs, and gradually build your presence. Remember, establishing a successful brand takes time, often more than just a few months. It’s about perseverance and continuously engaging with the market to introduce innovative and appealing brands.

Q: Considering the legal and regulatory requirements, what advice would you offer to new businesses, especially those established by expatriates in the UAE?

Omar Angri: Absolutely, navigating the legal and regulatory landscape in the UAE is crucial, especially for newcomers. If you’re starting a business as an expatriate, remember, the process begins with obtaining your trade license and undergoing all the required steps to legally establish your company. It’s essential not to handle the accountancy, tax, and VAT registrations on your own. Doing it solo without a deep understanding of the UAE’s legal framework can lead to costly mistakes and penalties, as the authorities are vigilant in ensuring that only compliant and legitimate businesses operate in the region.

Furthermore, it’s imperative to engage experienced legal and financial advisors to ensure your business aligns with local regulations. This step isn’t just about avoiding penalties—it’s about setting a foundation for successful and lawful operations. Additionally, staying informed through webinars and consultations with legal and accounting experts is crucial. These professionals provide updates and insights that can prevent costly missteps and enhance your understanding of the UAE’s business environment.

The UAE government values legitimate, transparent businesses that contribute positively to the economy. They scrutinize businesses to ensure there’s no illicit activity or tax evasion involved. For international business owners, it’s also important to understand and comply with the tax regulations that apply between the UAE and your home country to avoid future legal complications.

Ignorance of the law is no excuse here. It can cost you not just financially but also affect your business’s credibility. Starting a business in the UAE might seem straightforward with the possibility of registering a company in as little as 24 hours, but the real work—and your learning—begins after this point. Make sure you’re well-prepared and supported by experts who can guide you through the complexities of doing business in a new country.

Q: Considering the UAE market, how would you advise someone to select an e-commerce platform? Are there specific technology stacks that should be considered?

Omar Angri: In the UAE, there are two major e-commerce platforms that dominate the market: Amazon and Noon. While I haven’t delved deeply into Noon recently, it’s noteworthy that we do provide services for Noon, preparing listings just as we do for Amazon. For those looking to understand market dynamics and gather sales insights on Amazon, I recommend using tools like Helium 10. It’s an excellent resource for getting detailed sales numbers and understanding broader market trends.

Q: What strategies do you find particularly effective for driving e-commerce sales in the UAE?

Omar Angri: The key to driving e-commerce sales in the UAE lies in the mastery of keywords. It’s a simple concept, but the application is quite distinct from typical Google keyword strategies. The process involves understanding not just the search volume but also the customer avatar. You need to align your product visibility with actual buyer behavior, which isn’t always directly reflected in search volume statistics. For example, a product might have lower search visibility yet high sales because customers go directly to the item. Therefore, it’s crucial to understand your customer deeply, even down to how they interact with product photos. My main takeaway would be to focus intensely on optimizing keywords and enhancing product imagery to truly connect with and convert your audience.

Q: Could you elaborate on the approach toward SEO and SEM in the UAE?

Omar Angri: For SEO, we utilize a three-layer system using Helium 10. Most people only conduct single-layer keyword research and miss out on the nuances of deeper layers where long-tail keywords, which are crucial for effective SEO, are found. Our specialty lies in uncovering these less obvious keywords during the second and third layers of research, giving our clients a competitive edge.

Helium 10, although complex for beginners, is instrumental in this process. Once we’ve identified these keywords, we integrate them into our SEO strategies and complement them with pay-per-click (PPC) advertising on platforms like Amazon. This combination of precise keyword targeting and strategic PPC campaigns is essential for optimizing visibility and driving sales.

Q: What minimal knowledge should a business owner have about SEO and SEM to manage their e-commerce effectively?

Omar Angri: Understanding your customer avatar is fundamental. You need to ensure that every part of your marketing, especially your product listings, is tailored to attract and convert your target audience. For instance, if you’re selling baby products, your SEO and SEM strategies should be designed to attract mothers, not just any visitor. This precision in targeting prevents non-converting traffic, which is crucial because platforms like Amazon can penalize your rankings if your listings attract many visitors who don’t make a purchase.

It’s not just about attracting traffic; it’s about attracting the right traffic. Every business owner should understand the basics of targeting and converting their specific customer personas to ensure that their SEO and SEM efforts lead to actual sales. This understanding is key to preventing the common pitfalls that come with broader, less targeted strategies.

Q: Can you discuss the role of social media influencers in enhancing e-commerce efforts in the UAE?

Omar Angri: Social media influencers play a crucial role in e-commerce in the UAE, especially those with follower counts ranging from 15,000 to 45,000. This segment of influencers is ideal because they are still approachable and more likely to engage directly with brands. Sending them products to feature can significantly boost your visibility and sales. Importantly, as these influencers grow in popularity—potentially reaching upwards of 200,000 followers—you maintain that initial connection, transforming early collaborations into long-term partnerships. This mutual support system is invaluable. If you start early with these influencers, you can evolve together, enhancing your brand’s visibility as their reach expands. Targeting influencers who align with your product category, like sports influencers for fitness products, can place your items directly in the spotlight, making influencer marketing a strategic tool from the outset.

Q: What are some common pitfalls in the UAE e-commerce market, and how can businesses navigate these challenges?

Omar Angri: A significant pitfall for new e-commerce businesses in the UAE is misunderstanding the platform-specific nature of customer bases. Sellers often assume that strategies that work on Amazon will automatically translate to success on Noon, but this isn’t the case. Each platform attracts different demographics and buyer behaviors. For instance, Noon customers might prefer locally-oriented products, while Amazon’s customer base might be broader. It’s crucial to test your products on each platform independently to understand what resonates with each audience. This differentiation is key in a multicultural, competitive market like the UAE, where consumer preferences can vary widely. Recognizing and adapting to these differences can help e-commerce businesses avoid the pitfall of uniform strategy across diverse platforms.

Q: What are some of the issues with logistics and delivery that e-commerce businesses might face in the UAE, and how can they be managed?

A: Omar Angri: In the UAE, logistics and delivery generally operate smoothly, but there are nuances every new business should be aware of. Positively, the process is streamlined—goods from countries like India and China clear customs efficiently when shipped with the right freight forwarder under Delivered Duty Paid (DDP) terms. This ease of process is a stark contrast to places like Germany, where missing documentation can lead to significant delays and complications. In the UAE, the logistics systems are designed to facilitate quick and hassle-free entry into marketplaces like Amazon and Noon without unnecessary customs hold-ups.

However, it’s not without its challenges, particularly concerning products that are sensitive to environmental conditions or require special certifications. For instance, food items and cosmetics face stringent regulations. These products require specific certifications and are sensitive to the UAE’s climatic conditions, which can affect their shelf life and integrity during transit. Selling perishable goods or cosmetics online in the UAE demands careful consideration of these factors. It’s essential to ensure that all regulatory requirements are met and that the products can withstand the transit environment without degrading.

Businesses should also be cautious about inventory management. While it’s feasible to manage smaller inventories directly through platforms like Amazon and Noon, larger inventories might necessitate additional storage solutions. Excess inventory can overload your logistics score on Amazon, indicating the need for a physical warehouse to manage surplus items effectively.

Overall, while the logistics landscape in the UAE is favorable, it requires a strategic approach, particularly when dealing with perishable or regulated items. Businesses should plan logistics meticulously, ensuring compliance with local regulations and suitability for the UAE’s market conditions.

Q: How should businesses navigate the cultural and language barriers when it comes to marketing and customer service in the UAE?

A: Omar Angri: Navigating cultural and language barriers is crucial for success in the UAE’s diverse market. The linguistic landscape here is unique. While English is widely used, Arabic remains the national language, and its use varies significantly between the UAE and Saudi Arabia. For instance, on Amazon, English is the primary language in the UAE, with Arabic as a secondary option. However, in Saudi Arabia, Arabic takes precedence, with English as the secondary language. This difference underscores the importance of localizing content effectively.

For businesses operating in the UAE, even if your primary listings are in English, incorporating Arabic translations, especially in visuals, is highly recommended. This dual-language approach ensures broader accessibility and connection with a diverse customer base. It’s about more than just translation; it’s about localization. Localization extends beyond mere language—it encompasses cultural nuances in imagery, the tone of communication, and the overall customer interaction within listings and marketing campaigns.

When advertising through platforms like Facebook or Instagram, tailoring your approach to reflect the local dialects and cultural contexts is essential. Understanding who your buyers are and how they communicate is vital. There are different dialects and cultural nuances even within the Arabic language, and aligning your marketing to these subtleties can significantly enhance customer engagement.

Ultimately, being customer-centric is not just about liking a product and deciding to sell it—it’s about deeply understanding and anticipating the needs of your customers within their cultural and linguistic context. In today’s competitive market, adopting a customer-centric approach in all aspects of business—from product selection to marketing and customer service—is imperative for success. This focused approach helps bridge any cultural or linguistic gaps and truly connects with the customer base in the UAE.

Q: What are some future trends in technology that e-commerce businesses need to be aware of now?

A: Omar Angri: AI is a game-changer and its potential for e-commerce should not be underestimated. It’s not just about asking AI simplistic questions like what to sell next week; it’s about leveraging AI to gain deeper insights into the market without a heavy financial burden. To effectively utilize AI, sellers need to understand its mechanics to pose the right questions and engage in meaningful interactions. Many of the current software tools used by Amazon sellers now incorporate AI to some extent, such as AMZLISTAI.com, which provides Amazon listing creation

AI is poised to revolutionize efficiency for online sellers in the coming years. For those looking to stay ahead, I recommend starting with accessible AI platforms like ChatGPT. This tool can significantly improve business operations by automating customer interactions and providing insights that can refine marketing and sales strategies.

Q: Are there any predictions in terms of changes in consumer behavior that businesses should be aware of?

A: Omar Angri: The landscape is shifting towards a market flooded with choices, making it imperative for businesses to remain acutely focused on their customers. The abundance of options can overwhelm consumers unless businesses make concerted efforts to stand out. In regions like the US and the European Union, nearly everyone is turning into an agency, and while many are credible, simply being in the market for a long time isn’t enough. Businesses need to differentiate themselves through unique offerings and clear value propositions. Understanding the persona of your target audience is crucial. As the market becomes more saturated, the ability to stand out will dictate whether a business thrives or falters. The focus should always be on delivering exceptional value and maintaining visibility in a highly competitive environment.

Q: What impact might global e-commerce players have on the UAE market in the next few years?

A: Omar Angri: Over the past two years, we’ve seen significant movement from global companies towards establishing a presence in the UAE. I’m currently under contract with one such major player—details of which I can’t reveal yet—but the trend is clear: more are on their way. These companies are preparing to relocate operations here, not just to import listings temporarily. The quick turnaround expectation from UAE customers—who prefer deliveries within hours, not days—necessitates this shift.

The UAE’s tax benefits, coupled with advanced logistical capabilities, make it an attractive destination for these giants. The region operates on a 24-hour logistical cycle, unlike Europe, where operations significantly slow down after business hours. This high-speed operational tempo is akin to the US, making the UAE one of the most logistically advanced regions globally. Given this, I foresee an acceleration in the pace of e-commerce growth. The next decade in the UAE is likely to be more transformative for e-commerce than the last.

Q: What advice would you offer to UAE-based e-commerce startups looking to penetrate global markets?

A: Omar Angri: My first piece of advice is to solidify your operations within the UAE before expanding globally. Understand the intricacies of managing cash flow locally where you can start with as little as $500 to $1,000 and reinvest gradually. This is starkly different from markets like the US, where you might need $10,000 to achieve the same impact.

When you expand to markets with higher operational costs and faster turnover, like the US, the stakes are higher. If your stock runs out and you need to relist, the entire process—from listing to logistics—must be redone, which can be costly and labor-intensive. This emphasizes the importance of having a robust initial strategy and maintaining sufficient inventory to avoid frequent relistings. It’s crucial to focus keenly on these operational details to ensure sustainable growth when scaling globally.

Conclusion of the Interview with Omar Angri:

Omar Angri: Absolutely, learning from others is crucial in any field, particularly in e-commerce. We facilitate this through our YouTube channel, where we engage with various industry leaders. These leaders share their experiences and provide actionable advice, which means you don’t have to figure everything out by yourself. I’m constantly learning too; every day presents a new opportunity to absorb knowledge from others.

I’m not just here to teach; I’m also here to learn. I actively seek conversations and meetings that broaden my understanding and expose me to new ideas. It’s essential to recognize that everyone has a specialty, and there’s immense value in cross-learning. No matter your level of expertise in e-commerce, there’s always something new to learn from someone else. This approach of mutual learning and staying open to advice from various sources is what drives continuous improvement and innovation.

In conclusion, Omar Angri’s insights offer a comprehensive understanding of the opportunities and challenges within the UAE’s e-commerce landscape. From emphasizing the importance of cultural nuances and legal compliance to highlighting the role of technological advancements and influencer marketing, Omar provides a roadmap for success in this rapidly evolving market. His expertise underscores the need for continuous learning and adaptation, encouraging businesses to leverage local opportunities while preparing for global expansion. As the UAE continues to grow as a global business hub, these insights will be invaluable for entrepreneurs and established businesses alike.

To explore more about Omar Angri’s Margin Business and see their offerings, visit their profile on Topsdraw. For a broader view of similar agencies, check out our list of top E-Commerce Marketing agencies in UAE on our platform. You may also explore our comprehensive list of top agencies in UAE in our Service Directory

Key Takeaways of the conversation