ACC calls for gov’t action to regulate e-commerce, support traditional retailers

AMMAN — Online shopping sites pose a major threat to traditional retail traders, according to a sector representative who urged an immediate government intervention to set clear regulations on e-commerce. 

Due to the pandemic, many people have shifted their shopping towards e-commerce, which in turn poses a huge threat for traditional shopping,  according to Asad Qawasmi, clothing, footwear and jewellery sector representative at the ACC.

Representatives from the Amman Chamber of Commerce (ACC) urged the government for an immediate intervention as clear government regulations are needed to protect online and offline trade, and most importantly consumers, the Jordan News Agency, Petra, reported. 

“An urgent meeting is scheduled at Jordan Chamber of Commerce to discuss the effects of e-commerce on the trade sector, and also to come up with specific demands to be presented officially to the government,” Asad Qawasmi, clothing, footwear and jewellery sector representative at the ACC, told The Jordan Times.

Representatives of various sectors at the ACC have also urged the government to set a “clear timeline” for seasonal sales and unify them for online and offline stores, Petra reported.

“We have been informed about so many fraud cases by online shopping sites,” according to Qawasmi. 

He noted that increased usage and accessibility have made it significantly easier for scammers to commit online shopping fraud. 

“Consumers getting merchandise that are either not original or don’t match the online description is very common nowadays,” he noted.

Meanwhile, Shatha Mustafa, who has been running a page for custom made baby clothing said that “it is not as easy as it seems”, she continued, “we also suffer from customer fraud”

“If a customer places an order online, we custom make the item and mark the inventory as sold. We also hire a driver for delivery and in many cases the customer ends up not wanting to buy the item,” she added. 

“We can’t trace back the order or even give a bad ranking for customers with last-minute cancellations,” Mustafa noted.  

Qawsmi believes that traditional stores cannot compete with online ones, due to the high cost for running a shop in comparison with an online page. 

According to Mustafa, there are a lot of hidden costs for running an online shopping site, such as advertising costs, hiring a social media specialist and paying for influencers to promote merchandise, as well as paying a “fortune” for marketing campaigns.

According to Qawasmi, shopping stores’ sales have been declining dramatically, while e-commerce is on the hike, thus creating a huge imbalance in the market.

People’s financial difficulties are also adding to the trouble of shop owners, Qawasmi continued, shoppers are prioritising their spending, only essentials are bought. 

“Shop owners need to adapt to this change,” Economist Khaled Salameh told The Jordan Times.

Salameh added that shop owners are encouraged to enhance their customer service retention methods and also need to drive traffic to their stores through online services and pickups in stores.