Introduction

In Jordan, e-commerce generated 739 million USD in revenue in 2021, a 25.5% increase from 2020. As with the rest of the Middle East, the sector remains largely untapped and set for rapid expansion. Nearly 7 million people use the internet in Jordan right now. In 2021, just over one-third of them made online purchases, generating an average revenue of over $200 per user. Global trends suggest that this number can only rise as more people switch to an online exchange.

The COVID Pandemic Effects on eCommerce

The COVID Pandemic helped Jordan’s eCommerce industry. It paved the way for this constructive change, as evidenced by the increased number of people engaging in financial transactions online over the past two years. It is anticipated that 4.5 million eCommerce users will generate more than one billion dollars in revenue by 2025 if growth continues at its current rate.

Facts About Ecommerce in Jordan

• The growth of population users and online payments was 10.24 million in January 2022 (+0.8 increase vs. 2021).
• 66.8% of Jordanian use the internet – nearly 7 million users in 2021.
• 8% of all Jordanians shop and/or pay bills online in 2022.
• 34.9% of internet users use eCommerce in Jordan in 2022.
• $206.07 is the average revenue generated per user in 2022.
• $739 million was Jordan’s eCommerce revenue by the end of 2021.
• In 2025, 4.5 million eCommerce users are expected to bring in more than $1 billion.
• The growth in the largest eCommerce segment – electronics and media was $202 million in 2021.
• 600k more Jordanians were using social media last year, or a 10.5% increase.
• 6.3 million, or nearly 2/3 of the population, are social media users in Jordan.
• According to global trends, fashion and beauty were significant sectors in eCommerce.
• There was a rise in buying online grocery and personal care products in 2021 due to COVID.

Jordan’s Online Payment Platforms

Efawateercom is Jordan’s primary online payment platform, backed by the Central Bank of Jordan.

Opportunities for eCommerce Growth

According to Deloitte, Jordan presents enormous opportunities for eCommerce growth, but:

• 2% of the overall retail sales in the Middle East represent online sales.
• 15% of businesses in the Middle East have an online presence.
• 90% of the online purchases in the region are shipped from abroad.

How Is Jordan Adjusting To Ecommerce?

Jordan has started to support the eCommerce expansion, raising the minimum threshold for customs duty exemptions to 200 JD. However, payment systems and a lack of digital framework legislation might be the main obstacles to greater adoption.

Global eCommerce has significant growth potential thanks to social media. Jordan’s eCommerce market is still young and needs to be more significant to cause substantial market disruptions. Since most Jordanians use the internet, they are convenient with shopping online. The e-commerce industry has more opportunities for expansion as internet usage keeps growing.

10.24 million people live in Jordan, and the population is expanding quickly. With a high level of education and literacy rates, it is one of the most developed nations in the area. With an increase in Jordanians’ preference for online shopping, the e-commerce market in Jordan is also expanding quickly.

There are numerous chances for e-commerce to flourish in Jordan, including the following: 

• Jordan’s rising mobile internet users will increase demand for e-commerce services.
• As more foreign retailers enter the Jordanian market, there will be more competition, which will result in better prices and services for customers.

The industry’s growth will make online shopping more convenient for consumers. There will be more business opportunities for regional merchants, both domestic and foreign, as the Jordanian e-commerce market expands in the coming years.