AMMAN — Since
the onset of the
COVID-19 pandemic, merchants all over Jordan have been
struggling to keep their businesses alive. The pandemic only compounded an
already difficult situation, made worse by the growing demand for online
shopping.
اضافة اعلان
Jordan
News interviewed
several merchants on Mecca Street on Wednesday about their economic situation.
Ayman
Zahran, an employee at a clothing store, said that online shopping has significantly
affected the store, especially as merchants who sell over the internet have no
rents or bills to pay, and therefore can reduce their prices to encourage
customers to buy from them.
He added
that while
White Friday helped revive markets “by about 20 percent, it does not
make a difference to our situation, as COVID-related losses, due to high
shipping costs, might plague business owners and employees for some time”.
Mohammad
Al Daoud, an employer at a chair-designing store, told
Jordan News that
some goods are not sold online, and consequently, not all merchants and sectors
are affected by online shopping.
He added
that stores with good reputation should never be afraid of competition as
customers will choose them “no matter what”.
Yazeed
Al-Saeed, an employer at a toy store, told
Jordan News, that “nothing
beats buying from a real store”, even though some people still choose to buy
online, stressing that through online shopping, “people will not get the chance
to check their goods or return them if they malfunction”.
He also
believes that every store has its customers that trust it and come back to it despite
the fierce competition merchants face.
Anas
Mohammad, an employer at a home décor store, told
Jordan News that
online shopping had affected his work, highlighting that online shopping delivers
goods to customers, which is a great service to those who do not like to leave
their houses, especially during the pandemic.
However,
he said, “online stores might be deceiving sometimes; they do not let customers
check on the goods before buying them. Sometimes their photos are deceiving,
too; they might post a photo of an item which is ten times smaller in real life”.
Head of
the
Amman Chamber of Commerce Khalil Haj Tawfik told Jordan News that
“thousands of merchants are significantly affected by post parcels, and
thousands of others will be affected, too, if the problem is not addressed
soon”.
He added
that the main problem is lack of fairness, as merchants have their goods thoroughly
examined, in addition to having to pay high shipping costs, ye, there is only a
small fee on post parcels.
He
pointed out that post parcels had left “a negative impact on both state
treasury and merchants”, and called for quick solutions to help merchants stand
on their feet again.
President
of the
Garment Traders Association (GTA) Sultan Allan was quoted by Petra News
Agency as saying that commercial activities during the "White Friday"
are below expectations, stressing that markets witnessed a 30-50 percent decline
in sales this year compared to last year.
Allan
said that foreign e-commerce websites have attracted a wide group of customers with
their encouraging discounts, and that has created an unfair competition in the
market.
“Foreign
e-commerce applications attract a large proportion of buyers with low costs,
customs and tax duties exemptions,” while the Jordanian garment sector has
unfair customs tariffs imposed on it, which makes it lose the edge, said Allan.
He called
on the concerned authorities to conduct a quick and genuine review of the current
policy, to address its loopholes, and lift tax exemptions on post parcels, to place
an even tax burden on all types of trade.
Munir
Deyye, former GTA president, said in a phone interview with Jordan News that post parcels are replacing local stores, affirming that, contrary to
expectations, costumers chose to buy from foreign e-commerce websites in White
Friday.”
He
claimed that merchants pay high shipping costs when they import their goods, in
addition to high customs and excise duties, however, fees levied on post parcels
are very low.
Deyye
said that “till now, we do not have enough legislation to control online
shopping”, adding that if there had been real regulations, merchants’ problems
would have been addressed.
He also
said that besides post parcels, unlicensed local online shopping sites pose a
real challenge for the country and merchants, adding that these sites cannot be
held legally accountable and therefore they do not pay duties and taxes.
Assistant
Director of the Directorate of Market and Supply Control at the
Ministry of Industry and Trade Shabeeb Al-Fuqaha told Jordan News that the ministry has
intensified control over unlicensed local online shopping sites, and tracks them
to make sure they have all the necessary approvals.
He added
that some stores sell below market, and the ministry tracks them to ensure they
adhere to the official pricing set by the ministry.
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