Strike gold in the blue ocean of the Middle East, compete with cross-border models, have you made the right choice?
Have you made the right choice competing with cross-border models to strike gold in the Middle East's blue ocean?
In the Middle East, as an important region of the “Belt and Road”, there are huge business opportunities. How can you stand out and gain advantages in such a huge market in the Middle East? This is the topic we are going to talk about today: independent website, which may be your best choice in the Middle East market!
Comparison of cross-border models in the Middle East
If you want to do cross-border business, local e-commerce platforms are the first choice for many sellers. However, we recommend that cross-border sellers use independent websites to enter the Middle East market. Below we will tell you why through a comparison of four dimensions.
First of all, let’s take a look at the entry threshold.
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The Middle East e-commerce platforms have strict entry thresholds and regulations. For example, if you want to enter the Middle East e-commerce giant Souq, you need a local business license. If you want to enter the Noon platform, you need a mainland/Hong Kong corporate identity. If you do an independent website, there is almost no identity threshold.
Then, let’s take a look at the operating costs.
The minimum operating costs of e-commerce platforms include deposits, product commissions, warehousing fees, logistics costs, etc.
For independent websites, your costs are completely under your control. You can adjust and control your costs flexibly to maximize your profits.
Finally, let’s talk about customer data. On e-commerce platforms, customer data is held by the platform and merchants have no right to access it. This is undoubtedly a huge frustration for merchants who want to dig deep into their customers. However, on independent websites, all customer data belongs to you. You can use this data for precision marketing, increase customer repurchase rates, reduce your customer acquisition costs, and earn more profits.
So, what should you pay attention to if you want to start an independent station in the Middle East?
Characteristics of the Independent Station Business in the Middle East
The biggest characteristic of the Middle Eastern market is COD.
COD stands for Cash On Delivery, which is a popular payment method in the Middle East. Because many consumers in the Middle East do not trust online payments, they prefer to pay in cash after receiving the goods.
This is more friendly to novice sellers.
In addition, using an independent station to do COD business has a unique “COD single page mode”. Simply put, the product and payment interface are both kept on the same page, and the customer can scroll down to fill in the information and payment without jumping to another page.
Even novices who have not done cross-border website building can quickly complete the decoration and settings of the product page.
In addition, compared to platforms, competition is smaller, costs are controllable, and the conversion path is simpler, resulting in a lower customer loss rate!
How to Start an Independent Station in the Middle East
Starting an independent station may sound complicated, but it is actually not difficult. Here are some key steps to help you successfully start an independent station in the Middle East.
Firstly, you need to choose how to build your independent station.
Choosing an independent station SaaS system is a more cost-effective, faster and simpler way. This system usually helps you to do all the necessary e-commerce functions, and you only need to complete simple settings to start selling.
Once you have chosen the website building platform, you can officially start your independent station business.
It is very important to choose a suitable logistics provider among them, because it bears the “last mile” of logistics delivery, and the merchant’s payment also needs to rely on the logistics provider. Currently, the mainstream logistics providers in the Middle East include iMile and Dealfy, covering from domestic collection to last-mile delivery, solving pain points such as low signing rates and difficult delivery.
In addition, it is important to have a deep understanding of consumer habits in the Middle Eastern market. Cash on delivery (COD) is very popular in the Middle Eastern market, but this does not mean that all consumers accept this payment method. Therefore, it is recommended that sellers prepare at least one local online payment method targeted to the market.
Of course, understanding and complying with the laws and regulations of the Middle Eastern market is also a necessary step to open an independent website. You need to have a certain understanding of regulations on tariffs, product labeling, data protection, and consumer rights, and know what goods can be sold and what goods cannot be sold.
Finally, to stand out in a fiercely competitive market, you need to prepare advertising accounts for various channels in advance, so that you can quickly bind and start advertising when building the website. Applying for some advertising accounts may require a review period, so it is recommended to prepare in advance to avoid affecting business planning.
In summary, if you want to open an independent website in the Middle Eastern market, a deep understanding of the market and consumers, professional technical support, compliance with regulations, customer service, and marketing strategies are all essential.
This may take some time and patience, but as long as you have the determination to persevere, you can definitely successfully open an independent website in the Middle Eastern market and embrace new e-commerce opportunities!
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