Amazon and Noon in 2025: Growth, Rivalry, and What Sellers Need to Know

E-commerce in the UAE and wider GCC is now a mature, mobile-first market where convenience, fast delivery, and trust decide winners. Two platforms dominate that reality: Amazon and Noon. If you sell physical products in the region, 2025 is not about choosing one platform. It is about building a resilient mix that protects margin, accelerates sell-through, and keeps your brand visible even when algorithms shift.

Below is a practical guide for founders, operators, and category managers. It covers where growth is coming from, how Amazon and Noon differ, the traps to avoid, and how to build a playbook that actually scales.

The state of GCC e-commerce in 2025

Mobile shopping keeps pulling demand online. UAE and Saudi consumers treat marketplaces as the default search engine for products, not just a checkout layer. Industry trackers peg UAE e-commerce at around the low-teens billions of dollars in 2025, with steady double-digit growth through the decade. Research and Markets estimates the UAE e-commerce market at about 12.3 billion dollars in 2025, growing toward 21.2 billion dollars by 2030. That trajectory is backed by high smartphone penetration, digital payments, and logistics density in major cities.

Saudi Arabia is the other growth engine. Independent market outlooks show the KSA e-commerce market crossing the mid-twenties billions in 2024 and compounding at roughly low double digits through the 2025–2033 period. Translating that into seller strategy is simple. If you build operations in the UAE and set up compliant routes into KSA, you cover most of the addressable demand in the GCC. The logistics story matters. Same-day and next-day windows are increasingly normal in urban hubs. Quick-commerce experiments continue to compress expectations on convenience. Partnerships around rapid delivery, including Noon’s alliances in convenience retail, are signals that speed and proximity will remain strategic levers for conversion.

Amazon in the UAE and KSA: the momentum story

“Amazon entered the UAE by rebranding Souq to Amazon.ae in 2019, then layered Prime benefits, local selection, and FBA-style fulfilment. The result is a platform that many consumers associate with reliability, breadth, and predictable delivery. For sellers, that reliability translates into consistent traffic, a sophisticated ad stack, and a mature set of tools for catalogue control.”

Do not ignore Saudi Arabia. Amazon’s growth in KSA has benefited from policy support for digital services and infrastructure spending. Even if you currently sell only in the UAE, plan your catalogue, packaging, and compliance so you can list in KSA without rework. Regionally, Amazon’s corporate investments in the Kingdom’s digital infrastructure, including very public AWS commitments, reinforce a long-term bet on the market’s expansion. That confidence tends to trickle down into better tooling and seller programs over time.

Two practical seller takeaways for Amazon in 2025:

1. Treat Prime-level delivery speed as the expectation, not a perk.
   
2. Expect the ad auction to be competitive. You will need creative testing, disciplined bidding, and strong product pages to maintain efficient ROAS.

Noon in 2025: local strength and fast-moving execution

Noon is homegrown, backed by regional heavyweights including Saudi Arabia’s Public Investment Fund. That ownership profile matters. It aligns Noon with local priorities, gives it deep capital support, and helps it integrate with regional partners in ways that are structurally hard for a foreign platform. PIF’s stake in Noon Investment Company is set at 50 percent, highlighting that alignment.

Noon’s other advantage is speed. The company has pushed into quick delivery through Noon Minutes and keeps adding brand and retail partnerships that lean on its rapid-delivery infrastructure. Recent announcements around beverage and convenience tie-ups underline a strategy built on proximity and immediacy. If your product is impulse-friendly or habit-forming, Noon’s front-of-mind presence in daily categories can be a growth accelerant.

Noon is also aggressive with seller onboarding and promotions. For a new brand, that can mean lower barriers to entry and faster exposure. The flip side is pricing pressure. You will need to protect margin with package sizes, bundles, or value-add content rather than relying on list-price wars.

Where the platforms differ

Think of Amazon and Noon as two different roads to the same destination: repeatable sales.

Positioning. Amazon skews toward trust, selection, and consistent experience. Noon leans into regional identity, deals, and speed. That shows up in shopper expectations: on Amazon, you win with depth of content and consistent delivery; on Noon, you often win with sharp price-to-value and stock availability around promotions.

Seller economics. Both platforms charge commissions and fulfilment fees by category. Amazon’s fee table is broad and changes with category and size tier. Noon’s fee structure is simpler in some categories and often paired with promotional levers. Model the total landed cost across both platforms before deciding your hero SKUs. Include returns and advertising in that model. Public referral-fee pages and seller centers on each platform are your source of truth.

Discovery and ads. Amazon’s search and browse are driven by performance signals, relevancy, and paid placements. The ad stack is mature, which is good for scale but creates auction pressure. Noon uses promotions and placements aggressively. Expect discount events and front-page slots to play a bigger role in Noon’s conversion moments. Treat both platforms as pay-to-play, but weigh creative testing differently: Amazon rewards long-form A+ content and rating velocity; Noon rewards offer sharpness and stock depth during events.

Fulfilment. If your catalogue fits FBA-style workflows, Amazon’s operations can be a powerful stabilizer. Noon’s operations shine when you ride event windows or quick delivery. Your playbook should map SKUs to the fulfilment environment that best fits their demand pattern.

Local leverage. Noon’s ownership and partnerships can open doors for local collaborations and brand visibility. Amazon’s global tooling and institutional know-how help with scaling operational discipline. Sellers often do best when they use both advantages at once.

For context on Noon’s investor backing and quick-commerce posture, see the PIF profile of Noon and reports of Noon’s q-commerce partnerships. For Amazon’s regional footing and history, see Amazon’s UAE launch announcement and ongoing corporate moves in the region.

Where the growth is coming from in 2025

Category mix. Electronics remains a volume driver across both platforms. Beauty, health, and personal care keep growing because of replenishment behavior. Home and kitchen benefits from mid-ticket purchases that are less price elastic. Groceries and everyday essentials are where delivery speed and convenience determine share.

Seller influx. Amazon is actively courting UAE businesses. The public target of onboarding 100,000 businesses by 2026 gives you a sense of pace. For sellers, more sellers means more competition, which raises the bar on listing quality and ad discipline.

Saudi expansion. The KSA market’s scale justifies dedicated focus. If you are building your first warehouse or choosing a 3PL, test inbound routes that let you mirror inventory into KSA without adding complexity. Market forecasts point to robust Saudi growth through the late 2020s, which supports the case for early localization of content and packaging.

Convenience. Quick-commerce is not just about food. It is a habit-builder that trains customers to expect faster delivery for many categories. Noon’s partnerships in convenience retail, plus quick delivery pilots and alliances in the UAE, are the practical signs to watch.

The 2025 playbook: how to win on both platforms

1) Listings that rank and convert

• Treat the first 200 characters of your title as prime real estate.
  
• Build bullet points that answer use cases, not just specs.
• Add comparison tables in A+ content to pre-empt objections.
  
• Push for early reviews via compliant request flows.

This is table stakes on Amazon, but it also helps Noon pages convert when you send paid traffic to them.

2) Media and ads with a budget you can actually defend

Amazon’s ad stack is sophisticated. Do not chase impression share without a margin model. Start with branded terms, defend hero ASINs, then scale into category terms once your rating velocity is healthy. On Noon, align promotions with stock depth and a clean logistics plan for the event window. Track campaign profitability weekly and cut non-performers fast.

3) Inventory discipline

Sales velocity in the GCC can be spiky around paydays and national events. Build a simple forecast using three baselines: trailing 30 days, trailing 90 days, and last year’s same period. Use the highest of the three for event windows. Keep a safety stock buffer for fast movers and a liquidation plan for slow movers before they become write-offs.

4) Price architecture that protects margin

Do not fight daily price wars. Use bundles, multi-packs, and value tiers that make comparison harder. Reserve sharp list prices for entry SKUs that lead shoppers into your range. Keep map pricing and promo calendars tight if you sell through distributors.

5) Ratings and returns

Aim for a return rate that matches your category’s median. If you are above it, fix product detail clarity, packaging protection, and size guides. Respond to negative reviews with useful, factual replies that show you stand behind the product. The goal is not perfect ratings. The goal is a credible rating profile that converts.

6) Compliance first, always

The UAE remains strict on VAT registration, customs documentation, and product standards, especially for food, cosmetics, and electronics. Register the right HS codes, keep certificates ready, and follow Arabic labelling rules where required. This reduces clearance delays and protects seller health scores. 

Two case-style examples to copy

A beauty brand that moved from reseller to private label.
A UAE reseller of K-beauty masks faced falling margins due to constant price matching. The team used marketplace data to identify the three attributes buyers mentioned most in reviews. They engaged a contract manufacturer to build a private label variant that foregrounded those attributes, launched with a tight SKU set, and priced it to deliver target gross margin after ads. On Amazon, they led with content and reviews. On Noon, they led with promotions and bundles during events. Outcome: higher blended margin, lower dependency on distributor pricing, and better catalogue control.

A small electronics accessory brand hedging risk.
A phone accessories brand relied on a single platform for 90 percent of sales. An algorithm change reduced organic visibility. The team rebuilt its mix: Amazon for core hero SKUs with A+ content and defendable ad terms; Noon for event-led bundles and seasonal colorways. They integrated a 3PL with routes into KSA, created separate promo calendars by platform, and built dashboards for ROAS, return rate, and contribution margin. Outcome: steadier weekly revenue, healthier ad efficiency, and reduced stock outs during spikes. These examples are simple by design. Copy the logic, not the category.

The practical economics of selling in 2025

Sellers often underestimate three cost lines.

Working capital. Payout cycles and inbound freight tie up cash. If you plan a big event push, arrange short-term working capital ahead of time and order earlier than feels comfortable.

Returns. Returns are not just reverse freight. They are repack, refurb, and resale risk. Reduce returns with sizing clarity, better images, and packaging that survives last-mile handling.

Creative. Skipping high-quality images and video is a false economy. Your product page is the salesperson. Treat creative like a cost of goods because it directly affects conversion and ad efficiency.

What the future holds beyond marketplaces

Marketplaces remain the core, but the broader digital commerce stack in the GCC is getting interesting.

D2C plus marketplace. Many brands run a Shopify or WooCommerce site alongside marketplace listings for first-party data capture. Marketplaces drive volume; D2C drives lifetime value.

Social commerce. Short-form video and live shopping pilots are growing across the region. Even if you do not sell directly through social yet, use those channels to prime demand before marketplace events.

Q-commerce adjacency. Fast delivery changes shopper expectations. If your product fits quick-turn categories, explore the operators testing retail partnerships and dark-store models. It is not for every SKU, but it can be a profitable channel for the right ones.

Compliance checkpoints that save time and money

If you are new to the region, build a simple compliance checklist and revisit it each quarter.

• Licensing. Choose the right activity on your trade license for marketplace selling.
• VAT. Register if you cross the threshold and file on time.
• Customs. Use accurate HS codes and keep certificates ready.
• Product registration. Required for categories like cosmetics and some food.
• Arabic labelling. Check the latest requirements for ingredients and expiry dates.

These are not optional. They are the cost of speed. Getting them right avoids delayed clearances and suspended listings. For reference on market size context and the regulatory baseline that shapes marketplace operations, see the UAE market outlook and category compliance notes. 

Your 90-day plan for Amazon and Noon

Week 1–2: Foundation

• Finalize licence and VAT status.
  
• Finalize licence and VAT status.
  
• Create a pricing ladder that protects margin.

Week 3–4: Launch

• List on both platforms.
  
• Run branded search and defensive ads on Amazon.
• Align Noon promos with a stock buffer and a calendar.
  

Week 5–8: Optimise

• Kill underperforming ad groups.
  
• Tighten images and bullets based on search terms.
  
• Add bundles and multi-packs to lift AOV.
  

Week 9–12: Scale

• Expand to KSA if operations allow.
  
• Introduce private label SKUs where you see repeat demand.
  
• Build dashboards for ROAS, return rate, and contribution margin by SKU.

This plan avoids vanity metrics. It focuses on what moves inventory and margin.

Final word: do not choose, orchestrate

Amazon and Noon will both matter in 2025. Amazon gives you reliable scale and a deep toolset. Noon gives you regional leverage, promotion elasticity, and speed. Sellers who win will stop asking which platform is best and start asking which SKUs, offers, and calendars belong on each.

If you want help turning that into a working plan, Comms & Goods is built for it. We source products, set up compliant trade routes, build marketplace catalogues, and run the operations that keep you in stock and profitable.

Partner with us. Build a marketplace engine that scales without drama.

Sources

• UAE e-commerce market size and growth outlook to 2030. Research and Markets
• KSA e-commerce market forecast to 2033. GlobeNewswire
  
• Amazon’s UAE launch context from the Souq rebrand. EU About Amazon