Distribution Channels

Use of Agents/Distributors - Finding a Partner
According to the Commercial Agents and Middlemen Law No. 28 of 2001 foreign firms interested in exporting to Jordan are required to appoint locally registered Jordanian agents or distributors.

For the full text of the above law, please contact the Ministry of Industry and Trade at the following address:
Ministry of Industry and Trade
P.O. Box: 2019
Amman 11181 Jordan
Tel: +962 6 5607191
Fax: +962 6 5684692
URL: http://www.mit.gov.jo

Direct Marketing
Direct marketing of foreign products and services is usually handled by agents/distributors. Firms may also use tele-marketing media or the Internet, to launch direct marketing programs in Jordan.

Selling Factors/Techniques
Thousands of local wholesalers, semi-wholesalers and retailers operate in a competitive Jordanian market. Pricing, financing arrangements and credit terms are essential criteria to the Jordanian importer in making a buying decision. Freight charges and delivery terms are also strong determinants. Training of sales people and engineering support are becoming important factors.

Product Pricing
Local importers base their product pricing on the export price, freight costs, applicable import tariffs and taxes, the sales tax and profit margin. The government of Jordan is gradually lifting price controls on non-strategic food items. A new antitrust legislation, protecting consumers, should pass soon. The legislation will safeguard against price fixing, collusion, product hoarding, and dumping of foreign goods and services. Due to unclear policies on customs valuation, exporters and suppliers should coordinate the pricing of their goods and services with local representatives before assigning a final price to a product.

Selling to the Government
The General Supplies Department is the Government's central procurement agency. Direct offers for local bids are not permitted (i.e. a local agent/distributor or representative must be appointed to act on the potential supplier's behalf). Direct bids for tenders financed by international donors or the World Bank are permitted as stated in tender documents.