Overview of Logistics Companies in the UAE (United Arab Emirates) for eCommerce Businesses
The United Arab Emirates (UAE) has been witnessing steady growth in several industries in recent years owing to the government’s intention to reduce oil dependency. The UAE has been attracting investment from across the world, allowing businesses to set up regional headquarters and offices in the country’s famed free-trade zones (FTZs). The FTZs offer lucrative tax incentives to businesses for setting up shop in these special economic zones, and as a result, the Emirati economy is now more diverse than most.
The growth of an economy is closely linked to trade between, and within, states. However, to ensure that organic growth through the trade of goods is not hindered, a smooth logistics infrastructure is mandatory. The logistics and transport sector in the UAE contributed more than $29 billion in 2015, expected to grow at a CAGR of 4% by 2022. The contribution of the logistics sector in the UAE has resulted in the population choosing online shopping over physical purchases for the convenience that it brings.
The eCommerce industry in UAE is booming and a report by Dubai Customs indicated that eCommerce sales figures will rise a whopping 23 percent by 2022, with a market size of $27 billion. The pandemic played a key role in creating novel opportunities for online commerce. As per a poll conducted by Standard Chartered, 73 percent of people in the UAE felt more positive about online shopping after the pandemic arrived. Growth in both eCommerce and logistics industries is attributed to competitive shipping companies, increasing container traffic at UAE’s ports, and a paradigm shift in the post-pandemic economy.
In this article, we outline the best 10 logistics companies in the United Arab Emirates for eCommerce shopping and what makes them stand out.
Top 10 Best Logistics Companies in UAE (United Arab Emirates) for eCommerce [2021 Updated List]
1) Al-Futtaim Logistics Company in UAE
The logistics arm of this Dubai-based conglomerate began operations in 1980 and is one of the most popular logistics companies in the UAE today. Al-Futtaim provides access to 150 countries around the world, with integrated solutions for eCommerce, home delivery, retail, F&B, automotive and more sectors. The company operates in both global and local markets and provides clients with warehousing solutions, transportation, relocation, distribution among other services.
- AFL facilitates online order tracking to help manage order deliveries.
- The company uses route optimization solutions for deliveries to ensure the highest efficiency.
- The company offers product-related services such as order pickup, packaging, and labeling services to help eCommerce companies manage their delivery operations.
- The company offers customized packaging solutions based on specific eCommerce requirements of a client.
- Al-Futtaim also provides specialized eCommerce features such as ‘try and buy’ helping eCommerce companies improve their reach and conversions.
- The company provides inventory management services for eCommerce companies to help them keep track of existing, incoming, and outgoing stock.
- The company offers prepaid deliveries as well as COD options, including card-on-delivery for maximum convenience.
- After a delivery has been made, the company provides electronic proof of delivery for authentication purposes.
2) Aramex Logistics Company in the UAE
Aramex is a renowned logistics company founded in 1982 and based out of Dubai. The company has operations in more than 65 countries, a combined reach of 220 countries, and over 600 offices around the world. Aramex is a provider of comprehensive shipping solutions including warehousing and facility management services for eCommerce businesses.
- Aramex allows new online businesses to set up an online store and offers integrations with selling channels such as Martjack and ShopGo.
- The company helps eCommerce businesses manage their warehouses for efficient inventory management.
- The company offers dedicated shipping and delivery solutions for eCommerce companies to help them reduce costs and delivery time.
- Aramex offers value-added services such as cash-on-delivery and co-packaging.
- The company also offers features such as bulk order processing and order tracking.
3) Careem Logistics Company in the United Arab Emirates
Careem is a ride-hailing and delivery service based in Dubai operating as a subsidiary of the ride-hailing giant Uber. The company has operations in over 15 countries across the Middle East, South Asia, and Africa. The solution is ideal for small businesses that require access to customers through a fast and feasible delivery service.
- Careem offers fast delivery services with a timeline of 45 to 60 minutes.
- The platform is capable of optimizing the delivery based on several round-the-clock factors to ensure the fastest and most affordable delivery experience.
- The shipping partner platform allows users to track orders in real-time.
- The platform offers volume-based discounts to companies to help them leverage the cost benefits of scale.
- Careem also offers 24x7 customer support to clients for faster resolution of issues and queries.
4) Global Shipping and Logistics Service Company in UAE
Global Shipping and Logistics LLC (GSL) is a Dubai-based third-party logistics company that specializes in freight management, warehousing, and distribution solutions. The company offers exclusive solutions for online commerce companies and delivers all across the UAE.
- GSL Group allows users to track orders to ensure timely deliveries.
- The company offers inventory management services to businesses.
- The company has state-of-the-art storage facilities with almost 3 million sq. ft. of storage space.
- The company has dedicated solutions for storing consumer electronics.
- The company offers same-day delivery services within the UAE.
5) United Parcel Service (UPS) in UAE for eCommerce Logistics Service
UPS or United Parcel Service is one of the largest logistics companies in the world with operations in 220 countries. The company has a major presence in the Middle East and makes shipments through road transport, railways, aircraft, and container ships. UPS offers dedicated services for eCommerce businesses along with a host of features to make the delivery process efficient.
- UPS offers flexible shipping options based on the volume of orders.
- The courier company offers integrations with major online storefronts and marketplaces to help widen the reach of sellers.
- The eCommerce carrier offers e-fulfillment, order tracking, shipping history, and automation services.
- UPS provides dedicated delivery services for small businesses and woman entrepreneurs in the UAE to enable feasible and reliable shipping.
6) Ceva Logistics Company in the United Arab Emirates
Ceva is a logistics company based in Switzerland with major operations in the UAE. The company operates over 1000 facilities established in more than 160 countries around the world. The company is an end-to-end logistics solutions provider with dedicated solutions for eCommerce businesses.
- Ceva offers logistics solutions to D2C, B2B, and B2C companies.
- The company offers eCommerce and Omnichannel fulfillment warehousing solutions.
- The shipping company offers last-mile delivery solutions.
- The courier service provider offers return solutions to eCommerce businesses.
- The company offers solutions for brokerage and cross-border eCommerce.
- Ceva offers services such as same-day delivery, multiple pickup locations, repacking, and re-labeling.
7) Fetchr Courier Company in UAE
Fetchr is a relatively new shipping company that started in 2012. Fetchr is an ideal logistics solution provider for small businesses operating in the Middle East. The company focuses on providing flexible delivery solutions through an app-based delivery platform.
- Fetchr uses artificial intelligence to improve efficiency in the supply chain.
- The carrier offers dedicated solutions for small businesses for affordable shipping services across the UAE.
- The courier service provider also facilitates cross-border eCommerce deliveries.
- The provider also offers an efficient returns management service.
- The company allows users to track orders, manage inventory and make hyperlocal deliveries through its app-based platform.
8) Saudi Post Shipping Company in UAE
Saudi Post courier is a government-operated logistics company, also known as ‘al-Bareed’, headquartered in Riyadh. The company has significant operations in the Middle East and ships to countries all around the world. The company has a dedicated small business and eCommerce platform for easier facilitation of online shopping within the Middle East.
- Saudi Post allows businesses to choose between options for delivering at the doorstop, to lockers, or to postal offices.
- The company allows businesses to take COD orders, with options to pay via both cards and cash on delivery.
- The company offers reverse logistics management services to manage returns from customers.
- The company allows businesses to choose multiple pickup locations for orders.
- Saudi Post’s platform allows businesses to track orders and receive proof of delivery.
9) ViaMe Logistics Company in UAE
ViaMe is a delivery services provider headquartered in Dubai. The company focuses on technology-driven solutions for making feasible and timely shipments across the UAE. The company pays special attention to last-mile deliveries and is ideal for small and medium-sized online shopping websites.
- ViaMe offers on-demand delivery solutions to businesses for instant and scheduled deliveries.
- The company allows users to track orders in real-time.
- The shipping company offers a unified platform with an intuitive dashboard for viewing details of orders handled by this carrier.
- ViaMe offers round-the-clock support to its eCommerce clients for instant resolution of grievances.
10) Naqel Express Logistics Company in the United Arab Emirates
Naqel Express is a leading logistics company operating in 12 countries in the Middle East. The company was established in 1993 and is headquartered in Riyadh. Naqel Express manages more than 4 million shipments in a year and has a fleet of 3000 vehicles along with more than 3500 logistics professionals.
- Naqel Express offers end-to-end logistics solutions including freight forwarding, customs clearance, and warehousing services.
- The company offers a host of last-mile delivery services for tailored requirements of eCommerce businesses.
- The company allows businesses to accept COD orders with the option to pay via both cash and card at the time of delivery.
- The company offers e-Fulfillment, along with storage space for the inventory of eCommerce companies.
How to Choose the Best Logistics Company in UAE (United Arab Emirates) for Your eCommerce Business?
The market is brimming with options for shipping companies. To settle for a courier partner you need to understand the needs of your business and your customers. It can be overwhelming to look for a good fit for your business. So, consider the following factors while choosing a shipping partner that is suitable for your business.
Cost of delivery is an important factor while considering a shipping company in UAE. The cost of shipping a product is calculated based on several criteria including nature and size of the shipment, value-added services, and more. The right shipping partner does not necessarily mean the cheapest provider in the market, however, has to offer affordable solutions to help maintain feasibility.
Several options in the market may appear to be offering significantly cheaper services than competitors. However, the cheapest option may come at a price. Often these cheaper solutions providers involve some sort of hidden fees for their services which end up costing more than other platforms with higher upfront costs. Do not opt for a cheaper delivery option just to save on upfront costs; take into account the entire delivery process and the requirements of your customers. Choose a delivery partner that offers competitive pricing and justified rates for allied services, coupled with a good track record.
The delivery partner of your choice must be able to reach your customers. The target market for your platform must be assessed and the geography of such clientele must be considered before opting for a shipping company to partner with. It is essential to the survival of your business that your shipping partner serves the region where your target audience resides. More importantly, it should serve your target area well, to ensure customer satisfaction.
Another way that a shipping company with a wider reach helps your business in scope for growth. A large network allows you to gain access to new regions and potential clientele. It also allows your existing target market to be better served through improved regional presence. Serviceability improvements allow businesses to serve existing clients better and gain more clients. To ensure that you do not miss out on clientele, select a partner who has a wide reach across the region of your operations. A broad delivery network also ensures that your customer will receive the product faster.
The efficiency of a carrier is directly proportional to the speed of deliveries. The patience of modern-day customers is significantly lower than what it used to be. In the age of instant gratification, delayed delivery can create a dent in your sales figures. With cut-throat competition in the market, the smallest mistakes could result in the demise of an online selling platform. It is essential to any online seller that their shipping process is highly efficient and reliable. While deciding for a shipping partner, you must acquire information on the efficiency of the shipping company.
Apart from efficiency in the standard shipping process, it is also important that you look for partners that offer express and on-demand shipping solutions. In order to get orders delivered quickly and safely, businesses must partner with an efficient shipping company. A delivery partner must be able to deliver the product efficiently while reducing expenditure and improving delivery time. A client receiving a product on time will help with customer retention rates.
4. Value-added services
Only a delicate concoction of competitive product performance coupled with unparalleled service can yield customer satisfaction. The list of value-added services available can go on forever but look at some of the most important ones such as cash (or card) -on- delivery to provide additional convenience to your customers on top of their online shopping experience. Choose a shipping service that offers value-added services that are relevant to your business and your target market.
While several services that a company offers might not be of relevance to your business while looking for a partner, it is always better to settle for a company that offers more add-ons. Additional services allow businesses to experiment with their shipping experience while also allowing scope to add more solutions with the growth of the firm. Shipping companies with value-added services can also help consolidate activities such as packaging, labelling, etc. under one roof. This improves efficiency and reduces costs for the business.
5. RTO rates
Return-to-origin is an occurrence when the shipping company reports a failed delivery. A high RTO percentage translates into a company not being able to reach maximum fulfillment of orders and that is exactly what you need to avoid. RTO rates are a clear indicator of the performance of a shipping company. Since usually a shipping company is required to make at least three attempts at making a delivery, oftentimes, the delivery agent fakes delivery attempts. Such fakes attempts mean that the shipping company did make every effort to deliver the product to the customer, while causing you to lose out on the sale as well as costing you the price of shipping the product.
RTO percentages are low for a shipping company that ensures that its delivery agents are making every attempt to make the delivery successful. A number of factors can cause RTO such as failing to connect with the client or incorrect delivery information. A reliable partner will try to resolve these issues by informing the online platform promptly. Opt for a partner with a low RTO percentage in your operational and target region. This allows you to ensure that your delivery partner makes every possible effort to deliver the product to your client.
6. Returns management
The online shopping experience is naturally different from physical shopping. The consumer is only able to get a feel of the product once it has already been paid for. There might also be a situation when a customer decides to cancel an order which is already en route. In such cases, some products will inevitably be returned by the client. In cases where the product had already been delivered to the client, the client may be dissatisfied with the product or could have received the wrong product. In such cases, the client may place a return or replacement request.
In the event of a return request being raised by your customer, you need to have a delivery partner that manages the returns process without any hassles. Returning products are exposed to the entire shipping process again which means that they are faced with the risk of damage or loss once again. If handled poorly, reverse logistics can be very costly for your business. Choose a delivery partner with a reliable history of getting the product back to business without causing any loss or damage.
Online commerce platforms are a product of technology. Where such businesses exist on the foundation of technology, the logical way forward is to partner with tech-friendly companies from other domains. As far as shipping is concerned, eCommerce companies benefit greatly if their shipping partners make use of the technology to extend certain capabilities such as visibility, order management and more.
While opting for a shipping partner for your business, keep in mind that a partnership that comes with tech integrations will improve the performance and experience of your shipping operations. Therefore, look for a partner that uses the right kind of technology and offers integrations to their platform.
8. Previous Record
While future projections are important, it is just as important to assess the past performance of a company before getting involved with it. While searching for the right shipping partner for your online business, prefer businesses that showcase an appreciable past performance. It is important that business owners avoid partnering with firms that have displayed poor performance in the past to avoid facing troubles.
While searching for a partner, you may discover certain firms that offer fairly cheaper solutions, however, it is critical that you get a review for the company. Poor performers tend to offer cheaper services which ultimately result in increased costs due to poor performance, delays, damages, and other reasons. The decent historical performance also translates into a quality experience. A highly reviewed sets high standards for your shipping operations and helps you achieve higher efficiency and improved customer satisfaction.
|Al-Futtaim||Dubai, UAE||Abdulla Al-Futtaim||1980||Freight, Warehousing, transportation, Contract logistics, Shipping||Freight, Shipping, 3PL||$45M~|
|Aramex||Dubai, UAE||Bill Kingson, Fadi Ghandour||1982||Express logistics, Freight forwarding, Warehousing, Customs clearance, eCommerce shipping||Shipping, Freight, 3PL||$1.6B|
|Careem||Dubai, UAE||Mudassir Sheikha ,
|2012||Hyperlocal delivery, Express delivery, On-demand delivery||Hyper-local Logistics||$83M~|
|GSL||Dubai, UAE||Abdulla M. Al Shirawi,
Mohan G. Valrani
|1975||International freight, cots-storage warehousing, distribution||Cross-border logistics, 3PL||$142M~|
|UPS||Georgia, US||James E. Casey||1907||Delivery, logistics, warehousing, freight, cross-border shipping||Global logistics, 3PL, Shipping||$84.6B|
|Ceva||Marseille, France||Ken Thomas||2007||Supply chain management, Freight, Project logistics, Customer brokerage,||Global shipping, Freight||$7.4B|
Idriss Al Rifai
|2012||Last-mile delivery, order fulfilment, hyperlocal delivery, supply chain management||Order fulfilment,Courier, Supply chain||n/a|
|Saudi Post||Riyadh, KSA||King Abdul Aziz bin Abdul Rahman Al-Saud||1926||Courier, eCommerce logistics, International shipping||Shipping, logistics, 3PL||2.75B SAR~|
|ViaMe||Dubai, UAE||Mohamed Jamal, Rashed Al Tamini||2019||Last-mile delivery, Domestic shipping||Courier, logistics||$5M~|
|Naqel Express||Riyadh, KSA||Mohammed Al-Bayati||1993||Last-mile delivery, eCommerce fulfilment, Customs clearance, Freight, Express delivery||Shipping, 3PL, Freight||$489M|
Logistics is an inalienable requirement of all eCommerce businesses. However, very few large companies can maintain in-house logistics infrastructure, especially in the UAE. Small and medium businesses require the services of a logistics partner to help them deliver their product to the final consumer. An online seller can leverage the expertise of logistics companies in the United Arab Emirates to reach their customer without the need to navigate the complexities of the shipping industry. The eCommerce industry is growing at unprecedented rates owing to the convenience and ease of access it provides to the customers. A consumer today has limitless options to shop online and the logistics partner you choose can be the difference between your success and collapse.