Why You Should Protect Your Brand on Amazon in the UAE

The Middle East ecommerce market has grown fast and the pandemic has only accelerated Western brands wanting to sell online there, particularly on Amazon.ae. However, it's crucial to ensure that your brand is properly represented for the benefit of your sales through all channels, so you should ensure you protect your brand on Amazon in the UAE. The region now has one of the highest ecommerce growth opportunities, and it is predicted that [retail ecommerce across Middle East & Africa will grow by 20% in the next five years](https://www.retail-week.com/retail-voice/why-the-middle-east-should-be-next-on-your-list-for-online-growth/7035836.article?authent=1), compared to a global growth of 13%. Western brands will want to capitalise on this, but should not underestimate the impact of grey market activity, unauthorised sellers and fake product; all of which can make it harder for them to maximise sales Below, we highlight some of the reasons and benefits as to why now is the time to protect your brand on Amazon in the UAE. ## Protect your brand from unauthorised sellers In our recent benchmark analysis of 50 brands being sold on Amazon in the Middle East, we found 74% of them had more than one reseller on their listings. The [category with the most competition was Electronics](https://info.pattern.com/amazon-uae-electronics-report-2021?region=MENA) where 47% of listings had more than six sellers. Whilst competition can be a good thing, offering customers more choice on who to purchase from, in reality, a high number of sellers on a product is a sign of a messy seller landscape which can have a negative impact on customers and the brand. Although Amazon may not be a brand's first choice as a sales channel, you can be sure that if you are not selling your brand directly on the marketplace, it’s highly likely it’s being sold by another seller that is potentially damaging your brand reputation and perception. Typically, these types of sellers’ main business strategy is driven by quick revenue rather than investing in quality control, marketing, and brand experience. As a result, customers are often left unsatisfied with the quality of their products, often questioning the authenticity or items, and consequently, generating bad reviews and ratings for the brand. A category where we noticed this to be a significant issue was [Beauty](https://info.pattern.com/amazon-uae-beauty-report-2021?region=MENA), where most of the brands reviewed experienced a high volume of negative reviews. In comparison to other categories, brands in the beauty category also had a lot more customer questions on their listings; mainly questioning the legitimacy of the products. However, none of the brands replied directly. This is a missed opportunity to generate sales, build trust and protect your brand from other customers or sellers providing inaccurate responses. For brands that may be sceptical about scaling up their business on Amazon.ae, the benefit of working with an authorised third-party seller such as Pattern, is that you can build your legitimate presence and diminish the impact of unauthorised sellers.  This will help significantly improve reviews and ratings, as well as drive revenue on sales channels outside of Amazon. ## A high percentage of cross-border sales in the UAE In 2020, [86% of consumers made purchases from outside of the region](https://www.linkedin.com/pulse/selling-cross-border-middle-east-what-strategies-work-al-shami-/), partly due to high local pricing, and partly because consumers are actively seeking out brands and products that are not yet sold locally. Vitamins and Supplements is one category with strong cross-border sales. It also scored relatively poorly in the benchmarking, partly due to a competitive seller landscape of unauthorised sellers and a low percentage of product listings that had a rating of 4* and above. Product that has been stored incorrectly and slow delivery are two problems that can impact the customer experience and perception of your brand, even if it is a third-party supplying your product. ## Amazon Advertising can help increase your awareness Brands will also benefit from investing in Amazon Advertising to increase their presence in the market and compete against their peers within the category, especially since competition for Sponsored Brand and Sponsored Product Ads are low. When we analysed the use of Sponsored Advertising for the [10 Vitamins & Supplements brands selling on Amazon.ae](https://info.pattern.com/amazon-uae-vitamins-supplements-report-2021?region=MENA), we found none were utilising this ad type – this is a great opportunity to advertise your legitimate listings at relatively low costs if you aren't already doing so. To sum it up, being able to protect your brand on Amazon in the UAE means more than making direct sales. What's equally, if not more, important is the impact on Middle Eastern consumers' perception of your brand in general. Having the right strategy will grow your sales while ensuring your brand is protected. [Download the Amazon UAE benchmarking report](https://info.pattern.com/amazon-uae-report-2021?region=MENA) where we share best practise examples that effect more than just your presence on Amazon or to learn more about how Pattern can help you grow your business on Amazon, contact MENA@pattern.com.

Akta Bavalia

October 27, 2021

The Middle East ecommerce market has grown fast and the pandemic has only accelerated Western brands wanting to sell online there, particularly on Amazon.ae. However, it's crucial to ensure that your brand is properly represented for the benefit of your sales through all channels, so you should ensure you protect your brand on Amazon in the UAE.

The region now has one the highest ecommerce growth opportunities, and it is predicted that retail ecommerce across Middle East & Africa will grow by 20% in the next five years, compared to a global growth of 13%. Western brands will want to capitalise on this, but should not underestimate the impact of grey market activity, unauthorised sellers and fake product; all of which can make it harder for them to maximise sales

Below, we highlight some of the reasons and benefits as to why now is the time to protect your brand on Amazon in the UAE.

Protect your brand from unauthorised sellers

In our recent benchmark analysis of 50 brands being sold on Amazon in the Middle East, we found 74% of them had more than one reseller on their listings. The category with the most competition was Electronics where 47% of listings had more than six sellers. Whilst competition can be a good thing, offering customers more choice on who to purchase from, in reality, a high number of sellers on a product is a sign of a messy seller landscape which can have a negative impact on customers and the brand.

Although Amazon may not be a brand's first choice as a sales channel, you can be sure that if you are not selling your brand directly on the marketplace, it’s highly likely it’s being sold by another seller that is potentially damaging your brand reputation and perception. Typically, these types of sellers’ main business strategy is driven by quick revenue rather than investing in quality control, marketing, and brand experience. As a result, customers are often left unsatisfied with the quality of their products, often questioning the authenticity or items, and consequently, generating bad reviews and ratings for the brand.

A category where we noticed this to be a significant issue was Beauty, where most of the brands reviewed experienced a high volume of negative reviews. In comparison to other categories, brands in the beauty category also had a lot more customer questions on their listings; mainly questioning the legitimacy of the products. However, none of the brands replied directly. This is a missed opportunity to generate sales, build trust and protect your brand from other customers or sellers providing inaccurate responses.

For brands that may be sceptical about scaling up their business on Amazon.ae, the benefit of working with an authorised third-party seller such as Pattern, is that you can build your legitimate presence and diminish the impact of unauthorised sellers.  This will help significantly improve reviews and ratings, as well as drive revenue on sales channels outside of Amazon.

A high percentage of cross-border sales in the UAE

In 2020, 86% of consumers made purchases from outside of the region, partly due to high local pricing, and partly because consumers are actively seeking out brands and products that are not yet sold locally.

Vitamins and Supplements is one category with strong cross-border sales. It also scored relatively poorly in the benchmarking, partly due to a competitive seller landscape of unauthorised sellers and a low percentage of product listings that had a rating of 4* and above. Product that has been stored incorrectly and slow delivery are two problems that can impact the customer experience and perception of your brand, even if it is a third-party supplying your product.

Amazon Advertising can help increase your awareness

Brands will also benefit from investing in Amazon Advertising to increase their presence in the market and compete against their peers within the category, especially since competition for Sponsored Brand and Sponsored Product Ads are low.

When we analysed the use of Sponsored Advertising for the 10 Vitamins & Supplements brands selling on Amazon.ae, we found none were utilising this ad type – this is a great opportunity to advertise your legitimate listings at relatively low costs if you aren't already doing so.

To sum it up, being able to protect your brand on Amazon in the UAE means more than making direct sales. What's equally, if not more, important is the impact on Middle Eastern consumers' perception of your brand in general. Having the right strategy will grow your sales while ensuring your brand is protected.

Download the Amazon UAE benchmarking report where we share best practise examples that effect more than just your presence on Amazon or to learn more about how Pattern can help you grow your business on Amazon, contact MENA@pattern.com

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Sept 6, 2022

Global Ecommerce Weekly News: 6th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon announces new inventory and distribution service, AWD Amazon has launched Amazon Warehousing and Distribution (AWD), providing inventory and distribution services to its sellers as a means of addressing current supply chain issues. AWD is now available for sellers using Fulfilment by Amazon (FBA), i.e. outsourcing their fulfilment to the platform. Amazon has plans to expand the service outside the platform in 2023. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/02/amazon-introduces-new-service-to-help-solve-supply-chain-challenges/) Amazon Web Services (AWS) launches in the UAE AWS, Amazon’s cloud-computing platform offering, has launched its second region in the Middle East and now provides its services in the UAE. The move will now allow anyone in the UAE who utilises cloud technologies to harness AWS’s advanced platforms and APIs. An estimated $11 billion USD is expected to be added to the UAE’s GDP thanks to the implementation, with an average of 6,000 external vendor jobs to be created annually. AWS is now available in 87 zones across 27 regions, with sights set on expanding further across Australia, Canada, India, Israel, New Zealand, Spain, and Switzerland. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/30/amazon-web-services-launches-region-in-uae/) --- Other Marketplace News --- Lazada to launch in Europe Alibaba-owned ecommerce platform Lazada is set to launch in Europe, marking a refreshed internationalisation push from the company. The move follows toughening economic conditions and performance in Southeast Asia, advancing the need to tap overseas markets. In Europe, Lazada will face tough competition from giants like Amazon and Zalando. Lazada’s exact entry strategy is to be confirmed and will be reliant on macroeconomic and market conditions, according to Lazada CEO James Dong. [Read more on DigitalCommerce360](https://www.digitalcommerce360.com/2022/09/01/alibabas-lazada-to-take-on-amazon-zalando-in-europe-push/) Chinese ecommerce giant Pinduoduo to launch cross-border platform in the United States Pinduoduo, a Chinese ecommerce giant rivalling Alibaba and JD, has announced it will be launching a new cross-border ecommerce platform. The marketplace is set to launch in the United States next month, as part of the company’s larger push into new markets. Pinduoduo found success in China thanks to its rock-bottom price offerings and harnessing of social commerce marketing, emulating strategies similar to fast-fashion giant Shein. [Read more on Yahoo Finance](https://uk.finance.yahoo.com/news/pinduoduo-launch-international-e-commerce-034129263.html) Alibaba launches its biggest B2B sales event, ‘Super September’ China ecommerce giant, Alibaba, has now launched its month-long B2B sales event ‘Super September’. The event provides 40 million buyers and 200,000 suppliers with the ability to connect on the platform, showcasing a ‘virtually unlimited’ number of products. The event hopes to foster new cross-border business relationships to tackle supply chain challenges currently faced by businesses. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/alibaba-launches-super-september-b2b-sales-event/) --- Other Ecommerce News --- Klarna’s losses quadruple in first half of 2022 BNPL provider, Klarna, has reported losses of $581 million USD for the first half of 2022. This figure is almost four times larger than a year earlier, where $129 million USD in losses were reported. The company attributes the losses to employee costs, technology investments, and rising credit losses. Klarna’s figure reporting comes amidst worsening economic conditions, fresh legal and regulatory scrutiny, and pressure from Big Tech competitors. [Read more on The Financial Times](https://www.ft.com/content/483451db-9221-4ca4-83a6-b4ddc6bfcfbb) [Read more on the Guardian](https://www.theguardian.com/business/2022/aug/31/klarna-losses-more-than-triple-as-consumer-spending-slows) One fifth of Snap employees to be laid off amidst poor financial performance Social media platform Snap (‘Snapchat’) has announced it will be laying off 20% of its employees and closing out a number of projects following a year of poor financial results.The move will see 1,200 employees globally lose their jobs, saving the company an estimated $500 million USD in costs. Snap is currently valued at $20 billion, an 84% decrease from its valuation of $130 billion last year. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/snap-to-lay-off-20-of-its-workforce-and-wind-down-a-number-of-projects/)
Aug 30, 2022

Global Ecommerce Weekly News: 30th August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon set to shut down Amazon Care Amazon is closing its telehealth service, Amazon Care, which launched in 2019 as a trial program for its headquartered employees. Later the service was rolled out nationwide for employees and other companies. The ecommerce giant has now made the decision to move away from the healthcare space, believing it was not the right long-term solution for its enterprise customers. [Read more on CNBC](https://www.cnbc.com/2022/08/24/amazon-is-shutting-down-amazon-care-telehealth-service.html) Peloton closes new deal to sell on Amazon Following a recent deal, Amazon customers will soon be able to buy Peloton fitness equipment on the marketplace, marking Peleton’s first move outside a direct-to-consumer model. According to Peloton’s CCO, there are already around half a million searches on Amazon for Peloton products every month, despite having no presence on the marketplace. Some key products include the original Peloton Bike, retailing for $1,445 and Peloton Guide for $295. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/24/peloton-strikes-deal-to-sell-fitness-equipment-on-amazon/) --- Other Marketplace News --- 60% of Malaysians are buying from local sellers on Shopee A recent survey of nearly 3,500 respondents found that nearly half of the shoppers prefer to purchase from local sellers due to shorter delivery times. Other shoppers decide to shop locally due to the quality of the products made in Malaysia and an interest in keeping the economy running. As a result, smaller local merchants have been able to grow their businesses, and shoppers benefit from shorter delivery times, products of high quality and supporting local businesses. [Read more on The Malaysian Reserve](https://themalaysianreserve.com/2022/08/25/around-60-malaysians-are-buying-from-local-sellers-on-shopee/) Flipkart’s social commerce platform Shopsy crosses 100 million users Flipkart launched a social commerce arm, Shopsy, in July of last year, which has now surpassed 100 million users, ahead of its target timeline being the end of 2022. This acquisition of new users has made Shopsy one of the largest platforms of its kind in the country, and is expected to onboard a further 100 million by the end of 2023. The platform is centred around boosting local entrepreneurship and powering ecommerce for consumers across tier 2+ regions where users face challenges around trust and navigation when shopping online. [Read more on Business Standard](https://www.business-standard.com/article/companies/flipkart-s-social-commerce-platform-shopsy-hits-100-million-users-1220828006851.html) Meta joins Amazon and Walmart in bid for Indian ecommerce market Amazon mentioned earlier in the year that it would be building a logistics division in-house through its purchase of a 51% stake in Ecom Express, an end-to-end logistics firm, to make ecommerce deliveries more efficient in the country. Walmart operates Flipkart in India and is set to continue its investment in the marketplace. In an effort to compete in the Indian ecommerce market, Meta has partnered with Indian ecommerce company, JioMart, to offer customers a grocery shopping platform within its WhatsApp chat feature. [Read more on Pymnts](https://www.pymnts.com/news/retail/2022/meta-joins-amazon-walmart-indian-ecommerce-market/) --- Other Ecommerce News --- Ecommerce in Spain worth €57.7 billion in 2021 Spanish ecommerce saw 11.7% growth compared to last year, largely attributed to cross-border sales. In the final quarter of 2021, ecommerce sales in Spain were at €16.9 billion euros, at least 60% of which came from cross-border sales. Transactions from foreign locations to Spain generated a turnover of €1.56 billion in Q4, a growth of 27.7% compared to Q4 a year before. [Read more on Ecommerce News](https://ecommercenews.eu/ecommerce-in-spain-was-worth-e57-7-billion-in-2021/)
Aug 23, 2022

Global Ecommerce Weekly News: 23rd August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon to add mental health support to primary-care service Amazon is set to move into mental health therapy with its primary-care division, following its recent acquisition deal of One Medical. The plan is to partner with virtual behavioural therapy service, Ginger, to offer its Amazon Care users with on-demand access to mental health services, licensed therapists and psychiatrists. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/11/amazon-plans-to-add-mental-health-support-to-primary-care-service/) GMB union calls for £15 an hour minimum pay at UK Amazon warehouses Amazon recently offered its warehouse workers a 3% pay rise, which in comparison to the June inflation rate of 9.4% left employees disappointed. Following this, hundreds of Amazon warehouse workers stopped work last week, protesting against the minimal pay increase, seeking a minimum of £15 an hour. Recent protests consisting of employee walkouts and sit-ins aim to get a better offer out of Amazon. [Read more on The Guardian](https://www.theguardian.com/technology/2022/aug/09/gmb-calls-for-15-an-hour-minimum-pay-at-amazon-warehouses-in-uk) Amazon third-party sellers have received their first-ever holiday fee hike Amazon’s third-party marketplaces account for close to half of the company’s online sales. The company introduced a 5% fuel and inflation charge to its third-party sellers earlier this year, and has now implemented another inflation increase charge. Commencing 14 October, any seller who uses Amazon’s fulfilment service is subject to the price hike, which is set to be an additional 35 cents per item for products sold in the US and Canada. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/17/amazon-third-party-sellers-have-received-their-first-ever-holiday-fee-hike/) Amazon puts a pause on UK grocery shop roll-out as the cost of living increases Amazon has slowed down on its UK roll-out of till-free Amazon Fresh grocery stores following disappointing sales and the rise in cost of living. Allegedly, the company is no longer looking for potential sites to expand and if more stores are opened, they will likely no longer use a till-free system, as consumers become more cautious about spending. [Read more on The Telegraph](https://www.telegraph.co.uk/business/2022/08/21/amazon-pauses-uk-grocery-shop-roll-out-following-disappointing/) --- Other Marketplace News --- Shopee overtakes Alibaba across international markets Shopee has surpassed Alibaba and taken the top spot for sales outside of China. Singapore-based marketplace saw a year-on-year increase of 51.4% at the end of Q2 of this year, while Alibaba saw a 3% drop during the same time period. This can be seen as a promising development for start-ups and their ability to compete with some of the largest ecommerce giants in the market. [Read more on Exchange Wire](https://www.exchangewire.com/blog/2022/08/18/shopee-surpasses-alibaba-in-international-sales-amazon-searches-for-entertainment-exec/) H&M reopens its official store to Alibaba’s Tmall ecommerce platform It has been nearly 18 months since Alibaba removed H&M from its Tmall platform, following H&M’s criticism of human rights abuses in Xinjiang. It is estimated that over a million people, predominantly minorities in the area, have been unlawfully detained in camps across the city. Brands including Nike, Adidas, Burberry and Converse were swept up in the controversy, however H&M was one of the first to be targeted for speaking out about the issue. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/16/hm-returns-to-alibabas-tmall-platform-16-months-after-xinjiang-controversy/) Klarna launches new feature allowing UK consumers to view full online order history Buy-now-pay-later company, Klarna, has launched a new feature on its shopping app, which allows UK consumers to view their full online order history, regardless of whether they purchased the product using Klarna. The feature also shows delivery tracking and aids consumers in managing their online purchases more conveniently. [Read more on The Industry](https://www.theindustry.fashion/klarna-launches-new-feature-allowing-uk-consumers-to-view-full-online-order-history/) --- Other Ecommerce News --- Online marketplaces responsible for £280 billion business turnover in the UK Nearly 900,000 UK businesses are currently selling on online marketplaces, generating an estimated £282 billion worth of sales each year. This figure represents 6% of the UK’s annual business turnover, highlighting the notable contribution that marketplaces make to the UK economy, along with the potential for further growth in this area. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/09/online-marketplaces-responsible-for-280-billion-business-turnover-in-uk/)