The
fashion industry is highly sensitive to the policies and politics that
shape cross-border trade. Trying to circumvent some of the problems, e-commerce
expert Abdalhady Al-Dweik, in collaboration with his brother Abdullah Al-Dweik,
founded JoDealz, in the process getting familiar with Jordan’s trade tensions
and customs tariffs.
اضافة اعلان
JoDealz is a Jordanian startup founded in 2018 that
stands as an omnichannel e-commerce platform with both a website and an
application. It specializes in selling a variety of items at affordable prices,
including clothing, shoes, and accessories.
The COVID-19 pandemic brought about a paradigm
shift, acting as an accelerator for brands to adopt innovative ways to produce
value creation and elevate customer experience. JoDealz approach is to support
the Jordanian fashion industry by connecting shoppers to local designers
through one digital platform. The result was an impactful and sustainable model
whereby shops and suppliers in Amman display their products, simultaneously
boosting industry job creation.
There are challenges in the trade and commerce
industry in Jordan; Dweik’s background in mechanical engineering came in handy,
helping him design, analyze, build, and push the e-commerce movement in the
South West Asian/North African (SWANA) region.
“JoDealz is that place that is not only offered to
offline customers that pass by the shop, but to virtual customers comfortable
with online shopping and the modern retail landscape,” Dweik told
Jordan
News.
To adapt to the fluctuations in customer behavior
post pandemic, JoDealz was initially launched as an e-platform, selling
products grouped in categories on virtual shelves. It started with apparel and
later expanded to include groceries. Throughout the process, Dweik has been
able to find solutions for challenging issues posed by trade regulations and
customs authorities in Jordan.
Minister of Finance
Mohamad Al-Ississ announced at a
press conference the decision to reduce customs fees from 15 percent to 5
percent, but this reduction was not reflected in the prices of products.
Jordan has been part of the
World Trade Organization
since 2000 and the USAID Fiscal Reform Project since 2009, which leveraged the
country’s “single window” program aimed at minimizing the challenges at the
Customs Department.
According to the World Bank, Jordan takes 29 hours
to process exports and 134 to process imports. In 2022, a plan to restructure
the customs fees in Jordan has been decided in the Cabinet, to further reduce
customs categories from 11 to 4, and percentages from 40 to 25.
The comprehensive customs reform will also include
procedures preventing authorities from intervening in the general monitoring
reference on border crossings. Hence, Jordan’s Customs Department will be in
charge of general monitoring activities with all other institutions operating
under its sphere.
Despite the fact that the Cabinet strives to
restructure customs fees, Jordan remains a testing ground for business owners
and suppliers. This is where JoDealz comes in, supporting almost 15 local
suppliers and importing and displaying apparel from countries including
Romania, Bangladesh, and Syria.
JoDealz adapted to the rise of e-grocery shopping
during the pandemic by partnering with Sameh Mall — a commercial mall part of
the Sameh Group — to display grocery items available for delivery in all
Jordanian governorates. Today, its core service remains high-quality fashion
apparel and loyalty brands.
JoDealz prioritizes building a customer-oriented approach where it accepts both visa and cash upon delivery, has flexible return and exchange policies, and offers high quality products for suitable prices.
Despite being led by the
Ministry of Digital Economy and Entrepreneurship, JoDealz has seldom benefited from it due to Jordan’s lack
of awareness and culture around online shopping. The company was pushed to open
an offline store for customers to physically interact with its products.
Tracking customer behavior led to the understanding that offline shopping
raises purchasing power as much as online shopping.
According to economist Wajdi Makhamreh, Jordanian
suppliers and shops struggle with tracking customer behavior and purchases over
specific periods of time due to random, irrational, and impulsive buying
habits.
The company’s business model has evolved to support
customers in two ways: through payment solutions and customer service. Its
retention has reached 80 percent, with 40,000 customers actively shopping on
its e-commerce platform.
JoDealz prioritizes building a customer-oriented
approach where it accepts both visa and cash upon delivery, has flexible return
and exchange policies, and offers high quality products for suitable prices.
JoDealz further evolved upon joining the Heart of
Amman, the UNDP project funded by the government of Japan. JoDealz was one of
seven startups selected for the fund based on the company’s impressive
performance and traction. It was able to expand its team to 10 core members,
utilize marketing tools, and strategize its growth mechanism.
Today, it has expanded to Dubai and Abu Dhabi — the
region’s fashion capital.
“Attending the RiseUp Summit in Egypt has supported
me in being a part of the ‘Dubai Store’, Dubai’s leading marketplace for a
diverse range of products and services, and this is where I see myself
operating in the upcoming years,” Dweik explained.
JoDealz continues to direct its efforts toward the fashion
sector, growing its business and satisfying its customers.
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