With the booming development of e-commerce, more and more sellers have turned their attention to cross-border e-commerce platforms. As an influential e-commerce platform in the Middle East, Souq’s entry conditions have attracted much attention. In this article, we will introduce Souq’s entry conditions in detail to help sellers understand how to successfully open a store on Souq.
1. Document requirements: prepare a business license.
Souq’s first requirement for sellers is to provide a valid business license. The business license is an important proof of the legality of a company’s operation. Souq requires sellers to provide this document to ensure legal and compliant operations. When submitting an application for entry, please make sure to provide a clear and valid copy of the business license for Souq to review.
2. Cargo requirements: Understand Souq’s logistics policy.
Souq adopts the FBS (Fulfillment by Souq) model, which means that the seller must deliver the goods to the cargo hold designated by Souq in the first leg. Only after entering the warehouse can the goods be sold on the Souq platform. This logistics policy ensures the timely delivery and quality control of goods, and is also an important guarantee of Souq for the quality of goods.
When sellers choose Souq as a sales platform, they need to understand and follow Souq’s logistics requirements to ensure that the goods can be delivered to the designated warehouse in accordance with the prescribed standards. This will not only help improve the sales efficiency of goods, but also improve customer experience and enhance the seller’s credibility on the platform.
Third, account binding: ensure that the account registered with the business license is associated with the company’s bank account.
Souq requires sellers to use the bank account binding method with the company’s business license location when registering an account. In this way, the transaction funds of the seller on the Souq platform can be settled through the association with the company’s bank account. In addition, Souq supports the collection of US dollars, which is a convenience for cross-border sellers.
During the settlement process, sellers need to carefully check the account information to ensure that it is consistent with the account registered with the business license to avoid subsequent settlement problems. Good account management helps sellers handle transaction-related financial affairs more conveniently and improve operational efficiency.
Fourth, fee structure: understand the fees involved in order sales.
Opening a store on Souq does not require monthly rental fees, which is a big advantage for some sellers who are new to the e-commerce field. However, sellers need to be aware that the sale of orders will involve service fees, commissions, and VAT.
Specifically, the order service fee is AED10/order, and for orders over AED100, a certain percentage of service fees will be deducted. In addition, the commission rate varies depending on the selling price and category of the goods, generally between 5% and 20%. When operating on the Souq platform, sellers need to fully understand and consider these fees to ensure that they get the expected benefits from sales.
V. Conclusion
Through the above analysis of the conditions for entering Souq, we can see that Souq provides relatively clear entry requirements and fee structure. When preparing to enter, sellers must carefully read the entry guide provided by the platform and ensure that the documents and information provided are complete and accurate. At the same time, understanding Souq’s logistics policy and fee structure will help sellers better plan their business strategies and improve their competitiveness on the platform.
In general, Souq, as a mainstream e-commerce platform in the Middle East, provides sellers with broad sales channels and rich market resources. As long as sellers can meet the entry requirements and follow the platform regulations, I believe they can create their own new e-commerce journey on Souq.