Jordan that has a rooted history is an Arabian Muslim country in the north of Arabian Peninsula and West Asia. E-commerce in Jordan is expanding fast with high-speed broadband. Jordan government has additional initiatives to encourage the growth of e-commerce. This makes Jordan the target of e-commerce with true potential. Jordan has 10.1 million population and e-commerce turn into an attractive commerce model gaining traction among commercial surroundings.
E-Commerce And Cross-Border E-Commerce in Jordan
Those who want to do e-commerce and cross-border e-commerce in Jordan must be careful about certain things. Certain documents are requested from each country to do cross-border e-commerce with Jordan. Electronic Commerce Customs Declaration (ECCD), invoice, international shipment documents, A.TR certification of circulation are among the most important requested documents. There is no tax collection from exported goods up to 22 Euro per shipment with fast shipment. There is no tax exemption for export. Tax exemption is up to 150 Euro for goods sent from Jordan.
On April 2020, average revenue per user for payment with operator invoicing in Jordan was 4.8 USD. Operator invoicing is a popular method in Jordan for mobile digital purchases of mobile games and in-app purchases.
E-Commerce Barriers in Jordan
E-commerce in Jordan is accepted as one of the most advanced commerce in the region. In 2017, total e-commerce sales in Jordan was approximately estimated at 700 million dollars. Due to e-commerce strategy of the government, there are major barriers in the market. Lack of legislation to support e-commerce and protect customers, lack of applicable electronic payment system for e-commerce companies, arbitrary changes in licensing and taxes are among the handicaps of e-commerce.
70% of the country’s population do not have bank accounts. When all of these are considered, cash on delivery is the most popular payment methods among consumers. Although cash on delivery is an ideal option for online shopping from local websites, this is an important barrier when it comes to e-commerce or cross-border e-commerce.
Popular Online Marketplaces in Jordan
The most popular marketplaces in the country are Opensooq, Amazon, eBay and Aliexpress.
Opensooq.om established in 2008 for the Libyan market reaches 1.5 billion page views per month. The famous marketplace with various categories including home, cars, fashion and electronic is among the most popular marketplaces in Jordan.
It is possible to sell in every category on Amazon. Up-to-date prices and discount campaigns make this marketplace advantageous for e-commerce in Jordan. Amazon offers customer-oriented and reliable customer experience and it is among the most popular marketplaces in Jordan.
eBay is a famous marketplace for auction and consumer-to-consumer sales. It is popular in Jordan as a good sales channel for online sellers. The product range is the point of interest among online consumers in the Jordanian market.
AliExpress is a Chinese-based B2B e-commerce retail giant. Technically, it is working with the same system as the main company Alibaba or American marketplace Amazon or other leading marketplaces. The retail company is presenting products of global suppliers. Alibaba is among the top blue-chip brands around the world. AliExpress attracts the attention of the Jordanian e-commerce customers with cheap products and flexible delivery options.
Payment Methods in Jordan
It is important to give important information to list the most popular payment methods for e-commerce in Jordan. 70% of Jordan’s population do not have bank accounts. Therefore, the most popular payment method is cash on delivery. Other payment methods include credit card, debit card, PayPal and cheque.
Amazon uses Visa and MasterCard; Opensooq uses Visa and MasterCard, SMS or Knew system; eBay uses PayPal or Visa and MasterCard. Payment options on AliExpress vary. AliExpress might accept credit card, bank card, pre-paid cards, PayPal and bank wire.
Customs Tax in Jordan
Customs tax in Jordan is 20% without being less than 50 Jordanian dinars (JOD) and more than 500 JOD. 50 dinar is paid for each customs declaration, 30 dinars is paid for each export customs declaration and 7 dinars is paid for personal belonging customs declaration. Additionally, Jordan imposes 30% customs tax to goods from Turkey as of 2018.
Jordan Customs Office introduced new rules and special service fees for personal cross-border e-commerce clothing, shoe, toy and food purchases since August 2019. Previously, goods purchased from international e-commerce websites for personal use were exempt from customs tax.
Amazon (Global) and most of the other websites do not send goods to Jordan. But there is third part package guiding services that facilitate purchasing with online platforms. These online platforms provide a virtual address in the USA, the UK or any other country to the users to place an order. When the products are delivered to these addresses, they are transferred to the customers in Jordan.
All shipment up to 50 JOD (70 USD) is subjected to 5 JOD (7 USD) customs service fee in Jordan. Customers must declare this purchasing. Jordan Customs Office collects three times more customs service fee which is 15 JOD (21 USD) if the declaration is not made on the Arabic platform.
Fulfillment in Jordan
It is possible to send goods from Turkey to Jordan with DHL, FedEx and UPS. Although this seems like a logical selection, it becomes expensive in the future. In case of returns, you will work with loss. Therefore, fulfillment solution is more advantageous and affordable. Jordan only has Amazon fulfillment service. By making an agreement with Jordan-based fulfillment service, you can save time, money and labour.
Data About Jordan
- On January 2020, the number of internet users in Jordan reached 6.78 million. On January 2020, internet penetration was 67%.
- The number of internet users in Jordan in 2020 increased 79 thousand than the previous year.
- On April 2020, the number of social media users in Jordan was 5.70 million people. The number of social media users increased by 7.4% compared to the same period of the previous year.
- On January 2020, social media penetration in Jordan was 56%.
- On January 2020, there was 8.23 million mobile connection in Jordan. With these numbers, the number of mobile connection reached 81% of the total population.