Amazon, FBA and Dubai

DubaiBlog, has recently interviewed Antonio Vida an Italian entrepreneur who has decided to leave the traditional commerce and dedicate himself to the online commerce. He successfully started his activity in 2015 when he decided to sell different products on Amazon by importing products from China and reselling them to the main international markets. Most recently he has also decided to teach this business to those who don’t want to have a 9am-5pm jobs and to be more free.

In short words, this business is called Fulfilment by Amazon (FBA). FBA is a special online sales formula, which uses Amazon’s logistics to stock and deliver its own products. It is quite similar to E-commerce, but the difference is that, in this business, you do not need to have your storage centre and warehouse staff and you do not have to manage the logistic of your goods.

What you have to do, to start-up your company, is to import the goods from China and deliver them directly to Amazon store. When the buyer places an order, Amazon will arrange all the logistics, including the delivery to the final destination. Therefore, it is not important where you are physically located, to start this business. Amazon is present everywhere and therefore you can have this FBA business wherever you prefer, and even the goods you are delivering to Amazone store in theory can come from any part of the world. Antonio Vida imports products from China, because is a big trade and industrial centre where everything needed is available.

DubaiBlog, has asked an important question, that if it is easy to sell products on Amazon. According to Antonio Vida, selling on Amazon is a simple procedure, from the theoretical point of view. But in practice, you need to study, have competence and some kind of skills which you need to develop with the assistance of an expert.

Another question put forward to Antonio is the risks that an entrepreneur could face in this kind of business. For Antonio, the procurement is the most critical phase and those who want to start-up this activity has to deal with industries which are very far away and with people who speak a different language. One of the risks is to establish a wrong relationship with the factory or choose the wrong products. Moreover, different problems may occur during the import and custom clearance phases. All these phases are very critical and are to be deeply studied step by step.

Hereunder are some tips on how to open this kind of business. First of all, one has to be acquainted with all phases involved during the importation of the products. In particular, one has to study carefully all the custom clearance procedures, the international certifications in order to avoid goods being detained by the customs and the consequent loss of a lot of money. Those who intend to invest in this activity may get positive results and interesting incomes, with a good basic preparation and through the guidance by an expert of this sector.

One of the advantages of this activity is that its registered office can be in Dubai, which has a favourable taxation environment, but can operate in all the markets in the world. In short words, it is a sort of a small multinational company. Income taxes are to be paid only in the country where the registered office of the company is located, while VAT and GST are usually to be paid in the countries where goods are sold.

Dubai represents a particular advantageous environment for this particular activity since income taxes are zero in the free-zones.

Andrea Vida, states that by following his method you can get an immediate success and a gain great economic return through FBA. In order to get extraordinary results in a short time, you need to follow all the steps taught, be brilliant and have enough intuition. Andrea mentioned two examples of excellence. Two participants in his courses who have recently moved to Dubai, started six months ago to daily sell hundreds of products and achieved daily revenues of around 2,500 -3,000 €. During the peak season these revenues can even be higher. The best outcome was to that who has found the most remunerative market niches such as household goods and all products we use every day.

The big risk to avoid is to import goods without knowing the producers and the quality of the products brought in. Andrea is organizing a trip to China, between 11-15 March with a hundred of Italian entrepreneurs interested in the FBA platform. He will carry out a training on the field, by assisting those interested in how to deal with the producers and how to choose the right products. In this way the entrepreneur will make the right choice and will be bound to have a successful business.

Andrea helps wholesalers belonging to a distribution network, to find products with the best price/performance ratio. He also assists and help entrepreneurs who want to join Amazon platform business but have no idea what to sell. His help is in finding out the best products with the best price/performance ratio and the best economic return.
DubaiBlog has asked Antonio why he has chosen Dubai. He said that Dubai allow him to combine business with pleasure. In fact, Dubai is a perfect logistic base for him to go to Asia, has a favourable social link, a better time zone to communicate with the Chinese partners and has a favourable tax free environment.

To get detailed information on how to open a company in Dubai and how it is possible to get many advantages please write to:   ecommerce@freezonedubai.it

Amazon FBA Dubai

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