E-Commerce Surge Challenges Local Retailers
Jordan is witnessing a rapid increase in e-commerce parcel imports, creating serious competition for small and medium-sized traditional businesses. Thousands of online purchases, particularly clothing and accessories, enter the country every day. In 2023 alone, the total value of these parcels reached JD 310 million, exceeding the JD 250 million generated by physical retail stores, according to the Jordan Clothing and Textile Merchants Syndicate (Jordan Times).
Local traders argue that many of these goods enter the market without meeting proper customs or quality control standards, contributing to unfair competition and the growth of informal trade (Jordan News). They have called on the government to take more assertive action to protect the formal economy, particularly as many local businesses are still recovering from the economic effects of the COVID-19 pandemic.
Ministry of Industry Prepares New Regulatory Framework
To address these concerns, the Ministry of Industry, Trade, and Supply is drafting a bylaw aimed at regulating inbound e-commerce parcels. The legislation will establish clear procedures to ensure all shipments comply with customs rules, product safety standards, and commercial regulations (Jordan Times).
Officials from the Ministry have emphasized that the proposed regulation is not meant to hinder the growth of e-commerce, but rather to ensure a fair and transparent digital marketplace. “We aim to create a balance between the interests of digital entrepreneurs and the sustainability of traditional retail,” a ministry representative told
Key Components of the Proposed Bylaw
The draft bylaw is expected to address several key issues currently affecting the e-commerce landscape:
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Licensing requirements for domestic and foreign e-commerce vendors
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Verification of product authenticity and safety certifications
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Mandatory disclosure of seller information
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Clear return and exchange policies
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Mechanisms for handling consumer complaints
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Stronger enforcement of data protection regulations
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Full customs declarations for commercial shipments
The regulation will also cover sellers operating via social media platforms and mobile apps, which have become increasingly popular in Jordan but often function outside the tax system (Jordan Times).
Tax and Customs Rules Under Review
Currently, parcels valued under JD 200 are eligible for minimal customs duties—just 10% or a minimum of JD 5 if declared as personal items. However, according to the Jordan Chamber of Commerce (JCC), many commercial sellers exploit this loophole by misdeclaring high-volume or high-value goods, avoiding proper taxation (Ammon News).
This situation has led to significant revenue losses for the government and frustration among local merchants who must comply with full regulatory requirements. The new bylaw is expected to close these gaps and ensure more accurate reporting and taxation.
Parcel Volume Reaches Record Highs
Data from the Telecommunications Regulatory Commission (TRC) show that inbound e-commerce parcels rose by 70% in 2023, reaching 1.7 million. These shipments accounted for 95% of all parcels entering the country (Jordan Times).
The TRC highlighted that the growth has accelerated since 2021 due to rising consumer trust in online platforms, widespread smartphone use, and faster logistics services. However, it also warned of increasing challenges related to product quality, delivery delays, and consumer fraud.
New Customs Center Enhances Parcel Oversight
In August 2024, the Jordan Customs Department and the TRC launched a new E-Commerce and Express Transport Customs Center to improve monitoring and processing of digital trade shipments (5M Global). Located near Queen Alia International Airport, the facility provides advanced inspection tools and digital integration between customs, logistics companies, and payment systems.
Officials say this center will support the new bylaw’s implementation by providing centralized, real-time data on parcel imports, which will help reduce smuggling and tax evasion.
Economic and Regional Implications
Experts believe that this regulatory push reflects Jordan’s broader ambition to lead in digital trade governance in the MENA region. According to analysts, countries such as Egypt, Lebanon, and Saudi Arabia are facing similar pressures from unregulated e-commerce and are closely watching Jordan’s model.
At the same time, the reforms may create short-term friction with international e-commerce platforms and global sellers who benefit from Jordan’s current tax exemptions. Government officials stress that dialogue with private sector stakeholders is ongoing and that the draft law will undergo public consultation before implementation.
A Step Toward Digital Trade Sustainability
The proposed bylaw is a cornerstone of Jordan’s National E-Commerce Strategy 2023–2025, which seeks to build a competitive, inclusive, and sustainable digital economy. Future phases of the strategy, covering 2026–2029 and 2030–2033, will expand efforts to enhance regional integration, promote cross-border e-payments, and invest in digital infrastructure (Jordan News).
The bylaw is expected to be released for public consultation in late 2025, with implementation likely to begin in early 2026. If successful, it may serve as a blueprint for balanced e-commerce regulation across the region.
