What’s New on Amazon UAE Marketplace in 2025

Amazon UAE (Amazon.ae) continues to evolve rapidly in 2025. For sellers operating or looking to expand into this market, staying informed about policy changes, fee adjustments, and market trends is critical. Below are the most important recent updates and what they mean for your business.

1. Fee Changes (Effective August 1, 2025)

One of the most significant updates is the changed fee structure, affecting both referral and fulfillment costs for many categories.

• Referral fee adjustments: The Home Entertainment category’s referral fee has dropped from 7% to 5%, while Business, Industrial, and Scientific Supplies saw their referral fees increase from 10% to 11%.

• FBA / Fulfillment Fees: Fulfillment by Amazon (FBA) fulfillment fees have also increased, aligned with operational cost pressures. There’s more granularity now, with a two-tier Seller Flex fulfillment rate depending on whether an item’s price is above د.إ 75.

What this means for sellers: You’ll need to re-evaluate your profitability, especially for lower-margin products. Items priced under د.إ 75 may now carry relatively higher fulfillment costs; in contrast, higher-priced items may get more favorable rates under the Seller Flex model.

2. Growth & Opportunity in UAE & KSA

Amazon.ae and Amazon.sa (Saudi Arabia) remain among the top growth markets in 2025, particularly for international brands and sellers.

• Lower competition, high demand: Because markets like the U.S. are more mature and competitive, Amazon UAE/KSA offer more “white space” — categories not yet saturated and demand for international/unique products is strong.

• Simplified entry: Sellers can often operate without a local entity. Seller verification is becoming faster, and global payment solutions (e.g. via international service providers) are more accepted. FBA infrastructure in UAE & KSA continues to improve.

For those thinking of entering or scaling in the Gulf region, these features make for a relatively easier setup vs. some other Amazon marketplaces.

3. Policy & Requirements Adjustments

While Amazon hasn’t made extremely sweeping policy overhauls in mid-2025 specific to UAE, shifts in fee structure usually come alongside tightening on compliance and performance metrics. Sellers should keep an eye on:

• Ensuring product listings meet all local regulations (labels, certifications, languages, etc.).

• Monitoring performance metrics so that changes in fulfillment costs or referral fees don’t push previously profitable items into loss.

• Staying aware of fulfillment options and whether switching between FBA, Seller Flex, or FBM makes sense under the new rates.

4. Strategic Implications for Sellers

Given the changes, here are some strategies to stay profitable:

• Review pricing & margins: Re-calculate profit for each SKU, especially those priced under د.إ 75 to see if the margin holds after new fulfillment fees.

• Optimize listings for visibility: Use localized keywords (English & Arabic), ensure images meet high quality, and consider differentiating your brand in less-crowded categories.

• Use FBA & Seller Flex smartly: Since fulfillment fees have changed, analyze whether the benefits of FBA vs Flex make sense for your SKUs based on price, weight, and volume.

• Monitor market trends: Consumer preferences in UAE are shifting (premium items, international brands, halal-certified products, ethical/sustainable brands). Products that align with these will likely see demand rise.

5. Final Thoughts

Amazon UAE continues to be a high-potential marketplace in 2025 — especially for international sellers who are nimble and prepared. While the fee increases represent a challenge, they are also an opportunity to optimize, eliminate low-margin SKUs, and focus more on value-added offerings and strategic categories.