Release date: Monday, August 19, 2024 1:48 PM
E-commerce operators in the UAE will step up scrutiny of products sold through their platforms, especially those from third-party sellers, to ensure they are safe, authentic and secure for UAE consumers.
This comes as part of a compliance pledge signed by 11 of the country’s leading e-commerce operators with the UAE Ministry of Industry and Advanced Technology (MoIAT) on Monday.
Companies that have signed the pledge include Amazon, Noon, Sharaf DG, Eros, Nikai and Samsung.
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Speaking to Khaleej Times after signing the pledge, Sharaf DG CEO Nilesh Karko said that checks and balances have been put in place to ensure that genuine third-party sellers are on board.
“On e-commerce platforms, products are not only sold by authorized agents but also by third-party sellers. Sellers need to source genuine and safe products so that consumers feel secure while purchasing products from e-commerce merchants,” he said, adding that they would make further efforts to ensure that genuine products are sold online going forward.
“E-commerce merchants have to exercise great control. When they list a product, they ask for an Esma (Emirates Authority for Standardization and Metrology) certificate. When products are loaded into fulfilment centres, they need to scan and check if the right products are entering the fulfilment centre before it is delivered to the consumer. Ensuring that the right and authorised products are being sold is a big step towards making a big difference,” he said.
He elaborated that nearly 50 percent of DG Sharaf’s online sales come from third-party sellers.
“We vet the products of third-party sellers very carefully. When we onboard them, we make sure they have a trade license, approval from a distributor or agent, and that they source their products from appropriate sources. We also need to check for Esma certification,” he said.
“We advise consumers not to risk their health and safety by buying products just because they are cheap. They need to know where the product comes from and if it is genuine, not just look at the price,” Kalko added.
The UAE’s e-commerce market has grown significantly in recent years, reaching $5 billion this year and is predicted to reach $9 billion by 2026.
“With such great opportunities for growth, we must not forget the important role of operators to ensure that products sold in the market are safe, reliable and compliant with relevant regulations. All who sign today’s pledge share this sense of responsibility and will ensure that online products comply with regulations and standards are sold,” said Omar Ahmed Suwaina Al Suwaidi, Undersecretary of the MoIAT.
Al Suwaidi added that this is a voluntary initiative that will bring greater confidence in the quality and safety of products offered online.
“We actively seek to reassure consumers when these entities publicly commit to their compliance commitments,” he said, adding that the ministry has legislation that takes into account feedback from the private sector.
Paras Shahdadpourri, chairman of Nikai Group of Companies, said the Compliance Pledge will increase the reliability and credibility of e-commerce platforms in the UAE, allowing people to buy products with more confidence.
“The purpose of this pledge is to ensure that products sold online are safe, trustworthy and original. There have been talks about some e-commerce platforms not behaving responsibly, but after this pledge, I think they will exercise restraint and self-regulate. We should be responsible and follow regulations, which will further increase consumer confidence,” he said.
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