If you are a Chinese merchant who wants to open a store on the Souq platform and start selling your products, there are some necessary conditions and steps to follow. The Souq platform is an e-commerce platform in the Middle East that provides a huge sales market, but due to its special nature, certain requirements need to be met to enter.
a. Apply for an account and provide required documents
First, you need to apply for a merchant account on the Souq platform locally. In order to complete the account application, the following documents and information are required:
Local business license: You must have a business license that is legally registered in the Middle East. This is one of the important documents required by the Souq platform.
Middle East ID, phone number, tax number, etc.: You need to provide your identity documents, contact phone number, tax number and other information in the Middle East to ensure that your identity is legal.
b. Set up local warehousing
The Souq platform has its own logistics system, so you need to ensure that you have the ability to provide local warehousing facilities to store and distribute the merchant’s products. This is an important step to ensure that orders can be shipped in a timely manner.
c. Bank account and payment method
A local bank account is required to receive sales proceeds. Souq platform requires payment to be made only through local bank cards, which is to simplify transactions and comply with local financial regulations.
d. Provide a shipping address
Finally, you need to provide a valid shipping address so that the courier of the Souq platform can pick up the goods and deliver the products to Souq’s warehouse for unified delivery to customers.
Please note that since the Souq platform is not currently open to countries outside the Middle East, Chinese merchants cannot directly enter. Therefore, it is necessary to enter through third-party channels or overseas warehouses in the Middle East, and the sales proceeds may be transferred by overseas warehouses on behalf of the payment, accompanied by certain handling fees.
Souq platform fees
It is free to open a store on the Souq platform, but when selling products, you need to pay some fees, including order service fees, commissions and VAT.
– Order service fee: Each order needs to pay an order service fee of AED10, but if the order amount is greater than 100AED, the service fee for each order will be reduced. For more detailed fee information, please refer to the charging information on the platform.
Commission: Commission is charged based on the sales price of each product, and the commission rate is between 5% and 20%, depending on the type of product.
Currently, Souq platform mainly sells in two ways, namely FBS mode and self-delivery mode.
FBS mode: This mode is characterized by relatively fast delivery speed, but the product needs to be shipped to Souq’s FBS warehouse. Although Souq announced in the second half of 2017 that it will start charging storage fees, storage fees are not yet generally charged. This model is relatively safe because your products will be stored in Souq’s warehouse.
Self-delivery mode: This model is relatively more flexible, and many overseas warehouses maintain a good cooperative relationship with Souq, and these overseas warehouses are usually close to Souq. Merchants can share SKU (stock unit code) and support and grow each other. However, in this model, it is necessary to choose a trusted overseas warehouse for cooperation and manage products and funds carefully to avoid potential losses.
Joining the Souq platform can bring opportunities in the Middle East market to merchants’ businesses, but please be sure to abide by the platform’s regulations and requirements to ensure smooth business and meet local regulations. If you are interested in joining the Souq platform, it is recommended to consult relevant professionals or third-party service providers for more detailed guidance and support.