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Jordanian Market : E-commerce

E-commerce

Internet access
With 8.7 million users, internet penetration in Jordan reached 87.8% by the end of 2017. That year, there were 4 fixed-broadband subscriptions per 100 inhabitants, a number that grows significantly when it comes to mobile-broadband subscriptions (106.3 per 100 inhabitants). Additionally, 55.8% of households had a computer, and 82.9% of them had internet access at home. Even though the country has a high internet penetration rate, access in remote areas remains poor, as almost all companies concentrate their operations and promotions in major cities. There is also a contrast when it comes to the age of the internet users. While 75% of individuals aged 18-34 were internet users, only 57% of those aged 35 and above were connected to the internet. Internet connection fees have been considered high for years, but prices have dropped lately. Still, internet users in the country seem to be unhappy with what they claim is poor quality of service. It is worth noting that formerly state-owned Jordan Telecom controls the fixed-line network, centralising most of the connections to the international internet. Therefore, the government retains a certain level of control over the country’s internet, given that all traffic within the country must flow through a government-controlled telecommunications hub.
E-commerce market
E-Commerce in Jordan is considered to be one of the most advanced in the region. Total e-Commerce sales in Jordan was estimated at US$ 662 million in 2017. According to the government' s e-Commerce strategy, the main obstacles to the market in the country are the lack of legislation which supports e-Commerce and protects consumers, arbitrary changes to licenses and taxes that deter e-Commerce companies and the lack of a viable electronic payment system. Given that 70% of the population does not have a bank account, cash-on-delivery is the most popular payment method among Jordanian consumers. However, while that may be an option when buying from local websites, it becomes a hurdle when it comes to making cross-boarder purchases. Even though about 60% of the online purchases are paid with cash on delivery, this method is also not ideal for Jordanian businesses, because customers can refuse to hand over cash if they are not satisfied with the item they ordered. Some of the most popular e-Commerce websites in the country are  souq.com, automart-me.com, mansoura.com, semiramispastries.com and markavip.com.

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Latest Update: April 2022