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    21-Jul-2025

E-commerce boom in Jordan raises alarms over 'digital smuggling', unfair competition

 

The Jordan Times

 

AMMAN — Jordan’s online shopping market is expanding rapidly, but experts warn the growth is becoming unsustainable as thousands of parcels flood the country daily, many of them evading proper customs procedures.
 
In 2023, Jordan saw a notable surge in e-commerce, with around 1.7 million parcels entering the country through online platforms. According to the Clothing and Textile Merchants Syndicate, an estimated 7,500 parcels arrive daily, containing over 90,000 clothing items. The total value of these shipments reached JD310 million last year, surpassing the JD250 million recorded through traditional retail outlets.
 
The sharp growth has given rise to what local business owners call “digital smuggling,” the import of commercial quantities of goods under the guise of personal shipments. These parcels frequently bypass customs duties and regulatory checks, enabling unlicensed sellers to offer products at significantly lower prices, particularly on social media platforms.
 
“Traditional shop owners are facing an uphill battle,” said Mona Abdalla, who runs a small fashion boutique in Amman. “We pay taxes, rent, and social security, while others sell the same items online without any oversight. The competition is no longer fair.”
 
The Ministry of Industry, Trade and Supply has received an increasing number of consumer complaints regarding the quality and authenticity of products ordered online, a growing indication of weak consumer protection in the digital commerce sector.
 
Many of the individuals behind these shipments lack commercial registration. Once the goods arrive, they are marketed and sold on platforms like Instagram and Facebook, often undercutting licensed businesses.
 
“This situation is creating a parallel market that not only deprives the state of critical revenues but also threatens the survival of legitimate retailers,” said Khaled Hatem, a menswear shop owner. “If I’m paying full customs and taxes while others operate freely, I won’t be able to keep my doors open for long.”
 
While stakeholders acknowledge that digital trade brings innovation and convenience, many stress the urgent need for updated regulations and enforcement mechanisms to ensure fair competition and safeguard consumer rights.
 
“Digital progress should not come at the cost of economic justice,” one trader said. “Clear rules must apply to everyone, online or offline.”
 

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