eCommerce Returns in UAE (United Arab Emirates)- What You Need to Know

Introduction

The United Arab Emirates is often portrayed as the ‘Land of Unlimited Riches’ in almost every movie.

Even though Hollywood movies will have you believe that only princes and drug lords stay here, the U.A.E. does ordinary house people who shop online for their everyday needs.

As a result, ecommerce businesses also have to deal with Ecommerce Product Returns in the UAE. In fact, the United Arab Emirates is one of the few countries that have product return laws for e-commerce. 

Until recent years, the UAE was the retail hub of the world. The business-friendly policies and the low taxes made it a favorite destination for the uber-wealthy to practice retail therapy.

However, the recent pandemic changed the landscape for the entire retail sector in the UAE. Many brands had to shift their focus on their online stores to cater to the needs of their customers.

The ruling family of the United Arab Emirates has been trying to establish Dubai as the logistics hub of the world. As a result, the area's logistics and transport sectors are well-developed. 

Using this seamless transit system, the ecommerce sector in the Middle East region boomed. As the government saw the rise of the new way of doing business, it decided it was best to create laws to govern the sector and protect the customers' interests.

As a result, a product return law was declared in the UAE, which dictates that an online order can be returned within seven days of purchase regardless of the reason for return.

Therefore, ecommerce product returns in U.A.E. have become a hot topic of discussion. The ecommerce businesses had to shift their focus to enable this new feature for the customer without hurting their interests. 

If you are a new business looking to provide eCommerce returns solutions in UAE (United Arab Emirates) or an established brand in UAE that is looking to enable seamless returns on their online storefront, this article will help you. We will discuss all the challenges and the solutions while handling returns in UAE.

Factors Affecting Ecommerce Returns Experience in UAE

The internet might have brought us closer, but customer behavior may vary according to geographies. As customer behavior varies according to the location, the ecommerce returns and the factors influencing the returns experience can also change. Therefore, it is vital to study the critical factors affecting the ecommerce returns process in UAE. 

1) Preferred Payment Method

Ecommerce businesses in UAE must find a convenient way to refund cash payments. Most Middle Eastern customers prefer the cash-on-delivery method. This complicates the returns and refund process. Since the pandemic, customers have opted for safer contactless payment options. 

2) Logistical Supply Chain

UAE is the transit hub of the world. Therefore, the ecommerce businesses in the region do not have to struggle with finding the right 3PL for their returns process. It becomes comparatively easy to set up a seamless ecommerce returns process in the U.A.E as it becomes easier to figure out the reverse logistics process. 

3) Retail Market Penetration

In the UAE, the smartphone retail market has one of the best penetration rates. On the other hand, people have the buying power to afford labels and branded goods. Therefore, luxury is at its peak.

The ecommerce sector follows the trend. The most sought-after product category in the United Arab Emirates is Electronics, along with Food and Beverages. These odd leading categories can challenge figuring out and streamlining the ecommerce product returns in UAE. 

4) Cross-Border Shopping

The middle east has a very customer base. Customers often welcome orders from across the products. The availability of buying power allows ecommerce businesses to sell imported goods. However, international developments and warranties make it challenging to have a standardized return process. 

Now, let’s look at some common reasons customer requests returns in the UAE. These factors affect the returns process and experience in the U.A.E. As an ecommerce business, you will have to consider all these factors and ensure that you consider them while designing and implementing a returns feature for your online platform. 

Common Reasons for Ecommerce Returns in U.A.E

Returns are an essential yet not welcome endeavor in ecommerce. As an ecommerce business, you should try to lower your average rate of returns. For you to do that, you will have to understand and analyze the most common reasons customers request a return in the United Arab Emirates. 

1) Difference Between Listing and Product

One of the top reasons for returns in the UAE is the difference between the details and visuals of the product used to create the listing and the actual product. This can create distrust among the customers and result in losing the customer base as consumers tend to feel cheated. 

2) Customer Behaviour 

In the UAE region, it can be seen that the customers sometimes may place returns without having a proper explanation. With the law on their side, customers in the UAE can sometimes take advantage of a lenient returns policy.

This problem is particularly serious in the fashion sector, as luxury brands face unfair returns practices such as wardrobing. 

3) Wrong Deliveries

You would think the logistics hub of the world would be able to get their orders, right? But no, delivery of wrong items remains one of the most predominant reasons for ecommerce returns in the UAE.

Although ecommerce businesses can use the affordable and widespread network in the country, quality fulfillment services are still scarce. 

4) Low Product Quality

UAE has a rich retail market where the quality of the product is detrimental to the amount of retail success a brand enjoys. Customers tend to return products more often if their expectations for product quality are not met. 

5) Absence of Sizing Charts

While it may seem like an insignificant feature of the product page, the presence of sizing charts is an essential factor affecting the ecommerce return rate on a platform. People tend to order multiple sizes to keep only the size that fits. This will drastically increase your return cost and rate of return. 

6) Display Technologies

The product's look is essential in a product category like luxury goods, smartphones, or apparel. If your product page does not provide a 360 view of the product, it is possible that the customers may not like a part of the product that was not visible on the website. 

Best Ecommerce Returns Practices for UAE

Now that we know the challenges and the reasons for returns in the Middle Eastern region let’s discuss some solutions that will help you lower the return rate in the region. Some of the best practices to decrease the ecommerce return rate in the U.A.E. region include:-

1) Accurate Fulfilment

The logistical supply chain is pretty well-developed in the United Arab Emirates. You must create an accurate order fulfillment process to avoid wrong deliveries.

Either partnering can do this with a reliable warehousing and fulfillment partner or taking matters into your hands.

You can invest in a warehouse management system that lets you pick and fulfill your orders more accurately to reduce returns due to wrong orders. 

2) Content Improvement

Since one of the top reasons for returns is the disparity between the product and the listing, you can work on improving your product representation on the website.

You can add more realistic visuals with the help of high-quality images and use better product descriptions to communicate the product specifications to the customers. 

3) Shopper’s Tools

You can implement certain customer experience enhancement features. These features will improve your conversion rates and help the customers make an informed purchase.

You can start with simple tools like sizing charts and augmented reality. Customer experience management software like ClickPost can be an excellent tool for you to add these features without much technical hassle. 

4) Protective Packaging

Packaging is as important as the courier partner you choose. Protective packaging becomes necessary, especially if your products are prone to physical or weather damage.

The protective packaging can help keep your products safe and ensure that your customers do not have to deal with the frustration of receiving non-usable products. 

5) Analytics

The best way to save yourself from a storm is to see it coming. Similarly, you can use monitoring software to monitor your products' performance and return rate. You can even collect customer feedback in your returns process to tweak your product so that it caters to the customer's needs. 

Implementing these practices can be difficult. You will have to stabilize your returns process to implement measures that can enhance customer experience.

If you want to skip the hassle of having to develop a streamlined workflow and returns automation on your own, you can always go for a returns management portal that will help you with all that. 

Best Ecommerce Returns Management Portal for the United Arab Emirates

Return management portals can be your perfect assistant in streamlining your returns process. But, it is essential to choose the right software in this case. As this software will be responsible for the entire returns process of your platform, the reliability and the feasibility of the software in the UAE have to be considered.

1) ClickPost Returns Plus

This returns management portal features best-in-industry NPR management and returns automation technology. The returns management software of ClickPost can take care of everything ranging from automating your carrier allocation for reverse logistics to assisting you in creating and implementing your returns policy. 

2) ReturnGo

If you are a brand that wants to focus on exchange rather than returns, then ReturnGo might also be an ideal choice for you. ReturnGo has returns management portals that reduce your return rate by promoting exchanges. They also allow you to offer multiple modes of returns and refunds to your customers. 

3) UniCommerce

The UniCommerce Returns management portal focuses on improving the logistical side of things. The portal allows you to keep a better track of inventory. UniCommerce also enables you to reduce your RTO percentage and minimize your losses. 

4) Reverse Logix

This returns management portal allows you to enhance your customer experience during g the returns process. The software dashboard enables you to provide a branded returns experience to your customers and better inventory management and automated returns notification. 

Conclusion

The UAE enjoys one of the best retail penetrations on the globe. The recent pandemic impacting the branded storefronts has created an excellent opportunity for ecommerce businesses to push out their products.

Ideally, the first rule of business was to sell where people had money. However, the laws mandate you to process any returns within seven days. Therefore, developing and streamlining ecommerce returns in the United Arab Emirates becomes crucial. 

According to the surveys, the top reason for returns is the discrepancy in the product and the listing. This indicates that businesses can lower their ecommerce return rate if they implement the proper measures. The customers have a higher buying power than the average population.

However, with great power comes minimal responsibility. The customers expect the returns experience to be as seamless as possible. Therefore, it becomes vital that you use a returns management portal like ClickPost to handle ecommerce product returns in the UAE region. 

FAQs

1) Do I have to have a returns policy in UAE?

Yes, it is better to have a returns policy in UAE as the law requires you to accept returns within 7 days. It makes it easier for you and your customers to place a return. This allows you to increase your retention rate, even though the customer is unhappy with the product. 

2) What are the most popular product categories in the United Arab Emirates?

The UAE ecommerce market usually demands products from categories like electronics, apparel, and food and beverages. The ecommerce returns process for these products can be tricky. Therefore, ecommerce returns in UAE can be challenging to handle for new and upcoming businesses.