Things to consider when starting a dropshipping business in Saudi Arabia

Running our own business is what we all dream of. There is no doubt, it is not so easy. Nonetheless, it is great to improve our knowledge and accomplish our goals. Whether you are running a small or large business, if you often cooperate with other companies then you know how hard it is to stay on track. Planning a budget, managing all operations, employees and processes are not easy at all. In addition, if you are running your business worldwide, all this is even harder. For that reason, you probably often need logistic services international. As a reliable moving and logistic company, we exactly know what you are facing every day. So, if you are planning to start dropshipping business and focus on one or just a few certain things, we will help you. Stay with us and think about details before starting a dropshipping business in Saudi Arabia.

Consider all benefits of dropshipping business

Want to have your online shop and sell products from third-party suppliers? Well, as a drop shipper you will be able to do that. That means you can have coworkers (suppliers) who manage the inventory and ship the products on your behalf. That also means you will save a lot since you will not have to store all products in warehouse Riyadh. Also, you can forget about investing a large amount of money in inventory to launch a store.

Get ready for starting a dropshipping business in Saudi Arabia.
Starting a dropshipping business in Saudi Arabia means you will become a part of this successful community.

Dropshipping means that your job is to find a target group and make a sale. Yes, all your job will be conducted online. You will run your online store on the Shopify platform and search for potential customers in the niche you opt for. Once you get your public by using social media ads and options, then you will purchase the product from a supplier that is already paid for by your customer.

Precisely, you will agree with the Chinese factory manager and let them know you will cooperate with them. When your Shopify buyers make for example 50 orders, you will (forward) make an order at the factory you are cooperating with. They will deliver the goods to your customers, all you need is to send them the data of the order. You can create the prices on your online shop as you want and make a profit easily.

What is important to know before starting a dropshipping business in Saudi Arabia?

Although this is not the case for all the countries in the world, in Saudi Arabia you will need a trade license to establish your dropshipping online store. Our Four Winds Saudi Arabia experts remind you that trade rules and regulations in Saudi Arabia are very strict. Unluckily, without a trade license starting a dropshipping business in Saudi Arabia can lead you to serious problems.

Businessman in the city
Obtain a trade license firstly.

Maybe you did not know, but in KSA, all businesses are required by law to be registered to do a business. Also, all businesses, regardless of their size and complexity, need to have a viable plan, strategy, and vision. The registration is obligatory for forming companies, even the small ones, to do business. The lack of an online business license to conduct e-commerce business is not allowed. So, make sure to get your trade licensed from the Saudi Arabian general investment authority before starting a dropshipping business in KSA. This should be your first step before you establish your online business. One more time, don’t sell any products within your online shop before you get a trade license. The last thing you want is to pay g a hefty fine when you are trying to start your business.

Stick to regulations and you will prosper when starting a dropshipping business in Saudi Arabia

Once you obtain a trade license, there is nothing else you should worry about. Dropshipping is an ideal way for you to accomplish serious business success. Also, starting this kind of business is less risky than traditional. With far less capital you will take an opportunity to make a good profit. On the other hand, traditionally starting a business requires:

  • paying for air conditioned warehouse;
  • costs for packing and shipping your products;
  • having employees in the store;
  • tracking your inventory while in transit;
  • constantly tracking your stocks.

Will you need to face all these challenges when starting a dropshipping business in Saudi Arabia? All mentioned things are not part of running your dropshipping business. Definitely, you should know how less stressful and demanding this way of running a business really is. Even if it seems pretty complicated to begin this type of journey in the business world, if you want it, you could make it.

Will you have to base your online shop on any recommended field?

The answer is no, you can choose to sell anything you want. What you must know is psychology and how to recognize your future audience. Also, it is important to offer to your audience product they don’t have yet. Or, you can present a certain product in a way that no one ever did before you. For instance, if you are in love with some specific niche such as outdoor sports, this can be a great idea for creating your online store. Specific garments and specialized equipment will attract many people who are also outdoor sports lovers. Most of them did not even know about certain products and tools that could be very useful for them. Track the market demand and interest and be innovative!

Woman rocking climbing near waterfalls
You can offer specific climbing equipment within your online shop.

Before starting a dropshipping business in Saudi Arabia, you need to have a good idea of what your online shop will offer to the consumers. The golden rule for a solid start- be creative! As more creative you are, as successful your online shop will be. So, investigate a certain niche you are attached to, this is one of the proven ways to identify an idea that could change your entire life. Wish you luck in running a dropshipping business!

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