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7 Steps for Starting an eCommerce Business from Scratch in Saudi Arabia

28, September 2020

7 Steps for Starting an eCommerce Business from Scratch in Saudi Arabia

Amid the COVID-19 pandemic, eCommerce in Saudi Arabia has witnessed widespread growth backed by the high internet penetration and the flourishing smartphone market. This inspired startups and even small retailers to take a real step into building their own eCommerce store.

In response to the new trends, this blog explained the key primary steps involved in the process of building an eCommerce business from scratch in KSA and tips to start selling items instantly.

Let’s get started!

Different Ways for Creating an Online Store in KSA

Basically, building an online store in Saudi Arabia depends basically on the business model you choose. There are 2 key ways to choose from when setting up your online business in KSA:

1. Developing Your Own eCommerce Website from Scratch

Creating an eCommerce website from scratch for startups is a rather expensive, difficult option to choose as it requires detailed website development, payment gateway integration, online marketing set-up, logistics implementation, and much more. And you need to be picky about hiring the best eCommerce development companies in KSA.

However, building your eCommerce website from scratch will help you build a custom brand name for yourself and it’s a very successful business strategy in the long-term.

2. Joining an eCommerce Marketplace

Being a part of an eCommerce marketplace is an easy, simple way to start selling your products/services online in KSA. All you need to do is to become a part of an eCommerce platform and having a bank account and a tax registration number.

The best thing here is that the eCommerce marketplace will take care of everything else, such as website development, website design, payment gateway, marketing, etc. this helps to reduce the workload for sellers. Moreover, a seller can join multiple eCommerce marketplaces at the same time to maximize sales.

How to Start Your Own eCommerce Business in Saudi Arabia

To start your own eCommerce business in Saudi Arabia, there are some steps involved in the process. Let’s take a look at each step:

Step 1: Choose an eCommerce Business Model

There are 2 main types of eCommerce business models that you can opt for. You can go with either a single vendor or a multi-vendor eCommerce store. You can also choose either a single product line or have multiple product lines based on your business budget.

Choosing a single-vendor marketplace only involves 2 entities— a single seller who is selling products/services to multiple customers. By using this e-commerce model you’ll be having more control over the inventory.

On the other side, a multi-vendor marketplace enables multiple vendors to sell their products/services to various customers. This model gives you security in terms of making a sale. It also helps you deal with demand fluctuations and helps prevent a disruption in the supply process.

Step 2: Build your Brand

Once you’ve chosen your business model and the product or products you want to sell, as well as the target audience you want to reach, the next big step is to come up with the prefect name for your brand.

Your brand name should be:

  • Unique
  • Easy-to-remember
  • Short
  • Reflect your brand personality

Moreover, you should come up with a finalized design for your store design and business logo.

Step 3: Register Your eCommerce Business

It is one of the most critical parts of building your eCommerce business from scratch in KSA. You need to register and complete all the legal formalities.

Follow the below procedures to register your company:

  1. Obtain a Trade Name Clearance Certificate (done by the business owner)
  2. Obtain a certificate from an authorized bank (done by the business owner)
  3. Submit documents to the Companies Establishment Department, under the General Authority for Investments (GAFI) (done by the business owner)
  4. Notarize company’s contract (done by the business owner)
  5. Obtain Chamber of Commerce Certificate (done by the General Authority for Investments)
  6. Issuance the notification of incorporation (done by the General Authority for Investments)
  7. Commercial Registry Certification (done by the business owner)
  8. Register for taxes (done by the business owner)
  9. Register employees with the National Authority of Social Insurance (done by the business owner)

Step 4: Open a Bank Account

Once your company is officially registered, you will need to open up a bank account in the official name of your company.

Step 5: Build Your eCommerce Website

In this case, you have two main options:

  1. Building an Online Store from Scratch: You can develop your eCommerce website step by step exactly the way you’d imagined it in your mind. CodeShip, the leading eCommerce development company in the Middle East, is the preferred option for many entrepreneurs to develop their online stores.
  2. Using a Pre-built Platform like BigCommerce, Shopify, ExpandCart, etc. These platforms offer you readymade, easy-to-use templates designed according to your industry.

Step 6: Decide on Payment Gateways and Logistics

This step is essential to carrying out a successful eCommerce business in Saudi Arabia. You need to set up payment gateways that allow the processing of credit cards, debit cards, cash card transactions, and so on.

Determine also the logistics. It’s the process of shipping an item to a customer or transporting an inventory to a retailer. Having effective logistics plays a great role in preventing products from going missing and efficiently responding to customer queries regarding the expected delivery time.

Step 7: Promoting Your Online Store

It’s time to promote your online store and attract customers to make purchases. Based on your objectives and budget you’ve set for promoting your eCommerce website, you can choose from a variety of digital marketing techniques that can be used effectively.

If you want to start your eCommerce empire in KSA? CodeShip brings the best-customized eCommerce websites solutions in the Arab world by providing a bundle of solutions of B2C and B2B eCommerce websites.

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