Document background
The Online Consignment Agreement is essential for businesses operating in the UAE's growing e-commerce sector who wish to establish a consignment-based sales relationship through online platforms. This agreement type has become increasingly important with the digital transformation of retail in the UAE, particularly following the implementation of comprehensive e-commerce regulations. The document is specifically designed to comply with UAE federal and emirate-level legislation, including Federal Law No. 1 of 2006 on Electronic Commerce and Federal Law No. 24 of 2006 on Consumer Protection. It outlines the complete framework for online consignment relationships, covering everything from platform integration requirements to commission structures, while ensuring proper risk allocation and consumer protection measures are in place. The agreement is particularly relevant for businesses looking to expand their online presence without taking on inventory risks, while platform operators can use it to expand their product offerings without capital investment in inventory.
