Start Online Business in Saudi Arabia in 10 Steps with a Low Budget

You might thought before about online selling in KSA and how to earn money in Saudi Arabia. Let’s say that you have a big opportunity to do so now.

In recent years, the online business landscape in Saudi Arabia has witnessed significant growth and opportunities. With the increasing penetration of the internet and the rise of e-commerce, individuals and businesses are exploring various avenues to make money online.

This article aims to provide insights and strategies for starting and succeeding in an online business in Saudi Arabia, along with tips on earning money online and leveraging the e-commerce market in the country.

10 Steps to Follow to Start Online Business in Saudi Arabia

Follow these steps, tailored for retailers who want to sell online using online stores, to get your e-commerce business live with ease:

1. Research and Identify Your Niche:

The first thing you have to do to sell online in Saudi Arabia or any other country is to conduct market research to identify popular products or niches in the Saudi Arabian market.

It’s important to consider your own interests and expertise to find a niche that aligns with your passion.

Also, you need to analyze the competition and identify gaps or opportunities within your chosen niche. Check the stores of other sellers to find out how they sell and promote their products, what are their prices, what are their marketing activities, what tools and platforms they use, etc.

2. Create a Business Plan:

Strategic planning is the North Star that guides entrepreneurs to the shores of popularity and prosperity. To plan for your e-commerce in Saudi Arabia you need to:

• Define your business goals, target audience, and unique selling proposition (USP).
• Outline your marketing strategies, product sourcing, pricing, and financial projections.
• Determine your budget and allocate funds for essential aspects such as website development, inventory, and marketing.
• Collect all these data in files, organize them, and start working accordingly.

3. Choose an E-commerce Platform:

As if you are building your home, planning and analysis form the basis for it, but what about its view and appearance?

It’s as important as the first two stages. So, you should select a cost-effective e-commerce platform that suits your budget and requirements. Look also for platforms that offer user-friendly interfaces, customizable designs, and secure payment gateways.

You’ll find all of these features and more in “Zid”— the best choice to have your own eCommerce in Saudi Arabia. Here is Why:

• Providing endless customization options for the template and appearance of online stores, allowing businesses to choose a design that reflects their identity, with a control panel for store operations and appearance seamlessly.

• Supporting both Arabic and English to facilitate interaction with customers of different languages and dialects with high efficiency and flexibility.
• Offering a distinctive and smooth solution for payment processes, ZidPay enables customers to manage orders and electronic payment transactions in one place, characterized by the following features:
  • Instant activation with a single click and through various payment methods.
  • Competitive prices without setup, monthly, or fixed transaction fees or refund fees.
  • Providing quick payment links and the ability to share them through various means, with tracking details of the payment link.

• Providing an excellent solution for shipping suitable for all e-commerce stores and retailers, called ZidShip. It offers customers services from 35+ shipping companies through a single contract with competitive prices, supporting both local and international shipping.
• Providing an excellent control panel allowing customers to track all information about their purchase orders in their online stores, schedule tasks, send reports, create automatic invoices, etc. 
• Offering a mobile app service to enable you to create a custom application for your store that works on both iOS and Android systems, making your website design more responsive to mobile phones and more attractive to customers.

And this is not everything. Build your online store with Zid now. IT’S TOTALLY FREE

4. Establish Your Online Store:

It’s the time to bring your idea to light:

• Register a domain name that reflects your brand and is easy to remember. You can get it from Zid for free once you subscribe to the Essential Plan.
• Set up your online store using the chosen e-commerce platform and customize it to align with your brand identity.
• Create clear and appealing product descriptions, high-quality product images, and intuitive navigation for a seamless shopping experience.

5. Source Products:

If you don’t manufacture the products, follow these steps to get products for your store:

• Identify reliable suppliers and wholesalers for your products.
• Consider dropshipping as a low-budget option, where you don’t need to hold inventory and can fulfill orders through a third-party supplier.
• Alternatively, you can source products locally or import them from other countries.
• Use 4 Streams—the largest platform for dropshipping services in Saudi Arabia to get the best products to drop ship.

6. Manage Inventory and Fulfillment:

• Implement an inventory management system to keep track of your stock levels.
• Explore cost-effective fulfillment options, such as using third-party logistics (3PL) providers or utilizing the fulfillment services offered by e-commerce platforms.
• Ensure timely and efficient order processing and shipping to provide a positive customer experience.

Check the Zid Apps Market and get all the necessary applications to automate your inventory operational tasks and grow your business.

7. Optimize for Search Engines:

What is the benefit of a business if it doesn’t generate profit, and what is the benefit of a store if visitors don’t come to it?

So, you must conduct SEO activities to attract visitors to your store in an organic, not paid, way that increases the chances of purchasing from your store.

• Conduct keyword research and optimize your website’s content, meta tags, and product descriptions accordingly.
• Generate high-quality backlinks and leverage social media to drive organic traffic to your online store.

8. Market Your Online Store:

• Leverage social media platforms, such as Instagram, Facebook, and Twitter, to promote your products and engage with potential customers.
• Run targeted online advertising campaigns, such as Google Ads or Facebook Ads, to reach your target audience.
• Collaborate with influencers or bloggers in your niche to expand your reach and gain credibility.

9. Provide Excellent Customer Service:

• Offer multiple contact channels for customer inquiries and support, such as email, live chat, or phone.
• Respond promptly to customer queries and resolve any issues or concerns in a professional and timely manner.
• Implement a customer feedback system to gather valuable insights and improve your products and services.

10. Monitor and Analyze Performance:

• Utilize web analytics tools, such as Google Analytics, to track your website’s performance, visitor behavior, and conversion rates.
• Monitor your sales, expenses, and profitability regularly to ensure the business is on track.
• Continuously analyze and optimize your marketing strategies based on the data and insights gathered.

“Can foreigners do business in Saudi Arabia?” If this question came to your mind, the answer, definitely, will be “Yes, they can.” the Saudi government  have launched initiatives demonstrate the commitment of Saudi Arabia to fostering a favorable environment for entrepreneurship and supporting the growth of small businesses for local and foreign residents. 

Why You Should Start Online Business in Saudi Arabia?

Recent statistics suggest that there are several reasons why people in Saudi Arabia are interested in building online stores for their own online businesses. These reasons are influenced by various factors such as increasing internet penetration, a growing middle class, and the impact of the COVID-19 pandemic.

Let’s prove this with some key statistics:

• Growing E-commerce Market

The e-commerce market in Saudi Arabia is rapidly expanding. In 2020, the market size was estimated at $13.9 billion, and it is projected to reach $30.2 billion by 2028 [1].

• Internet Penetration: 

Around 90% of the population in Saudi Arabia had internet access in 2020, making it a tech-savvy market. Thus, people have greater access to online stores.

• Shifting Consumer Behavior:

The COVID-19 pandemic has significantly influenced consumer behavior in Saudi Arabia. This is something that is obvious and known to everyone. More consumers are shifting towards online shopping, including groceries, due to the convenience and safety it offers. 

• Product Diversity and Convenience: 

Factors such as product diversity and convenience play a significant role in shaping consumer purchasing patterns. Online shopping provides consumers with more choices in terms of time, shops, and product diversity, which has contributed to the growth of online stores.

• Trust and Security: 

Trust and security are important considerations for consumers when it comes to online shopping. The Saudi government has taken steps to address security concerns and build trust among consumers, including implementing laws and regulations to protect online shoppers.

Let’s talk more about the Saudi government initiatives…

Supportive Saudi Government Initiatives for Ambitious Business Owners

Saudi Arabia has implemented several government initiatives to encourage and support individuals in building their own businesses. Here are some key initiatives:

• Vision 2030

This is a comprehensive plan launched by the Saudi government to diversify the economy and reduce its dependence on oil. 

It aims to create a vibrant entrepreneurial ecosystem and support the growth of small and medium-sized enterprises (SMEs).

• Small and Medium Enterprises Authority (Monsha’at) 

Monsha’at is a government agency dedicated to promoting and supporting SMEs in Saudi Arabia. 

It provides various programs and services, including business development support, funding opportunities, and training programs.

• Entrepreneurship Programs and Competitions:

The Saudi government organizes entrepreneurship programs and competitions to foster innovation and provide financial support to startups. Examples include the Misk Innovation and the Entrepreneurship World Cup.

• Start-up Investment Funds:

The government has established several start-up investment funds to provide financial support and venture capital to early-stage businesses. Examples include the Saudi Venture Capital Company (SVC) and the Saudi Arabian General Investment Authority (SAGIA).

• Business Incubators and Accelerators: 

The government has set up business incubators and accelerators across the country to provide entrepreneurs with mentorship, training, and infrastructure support. Examples include Badir Program and King Abdullah University of Science and Technology (KAUST) Entrepreneurship Center.

• Regulatory Reforms

The government has implemented regulatory reforms to simplify the process of starting and operating a business. Initiatives such as the issuance of instant licenses and the reduction of bureaucratic procedures aim to facilitate business setup and promote entrepreneurship.

The government also has taken steps to enhance access to financing for entrepreneurs and SMEs. This includes establishing credit guarantee programs, supporting microfinance institutions, and collaborating with banks to provide specialized financing products.

• Localization Initiatives: 

The government encourages the localization of industries and supports local entrepreneurs through initiatives such as the In-Kingdom Total Value Add (IKTVA) program. These initiatives aim to create opportunities for Saudi nationals and promote economic growth.

By leveraging these initiatives, aspiring entrepreneurs can benefit from the various programs, funding opportunities, and support services available to start and scale their businesses.

Last but not least…

If you have ever wondered how to earn money online in Saudi Arabia without investment, you’ll find your answer in this guide but remember, starting an online business requires dedication, perseverance, and continuous learning. With the right mindset and strategic planning, you can successfully launch and grow your online store in Saudi Arabia, even with a limited budget.

Good luck!