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Export Business Benefits and Challenges in Jordan

Companies should do proper research about the advantages and disadvantages in any import and export business. Some companies enter the international market intentionally and some may receive an order from the foreign market based on their product. But never jump into something new without any proper preparation. Whether it’s an unintentional or deliberate move to start an export business go through all the pros and cons to avoid any regret later. Export of products undoubtedly a beneficial step for the economy of Jordan. Read more about Export Challenges in Jordan below.

List of the advantages of export business

Low-cost unit

By taking your business to an international level, you can utilize your existing facilities such as machines, labor, and factory more than ever before without increasing the cost. To fulfill more orders, labor involves in work more actively without wasting any working hour leads to overall more production and economic growth. You can also add profit to your firm by producing more products with increasing returns.

Higher profit

Certainly, you do not start an export business to make any loss. Everyone enters with high hope of getting maximum return from the exporting products. International orders are usually larger in quantity due to the shipment cost and many other factors led to more success in export and import business. Domestic buyers usually make small orders due to ease of delivery. It is usually difficult to make place in the domestic market with innovative or unique products whereas innovative products are more welcomed in the foreign market.

Better sale

When you stay stuck to sell your product in the local market you usually get less profit due to less demand. If you are really into increasing your sale potential get yourself in the export business to expand the pie from which you earn the money. Before starting the export business, saturate the local market with your product and check the response as well as be aware of all the potential risks and business challenges associated with export business.

Minimizes seasonal fluctuation

When you are selling your seasonal products in a limited domestic market you may have to face seasonal sale fluctuation which can badly impact your business with extremely reduced sales. By taking your business to an international level you can get never-ending profit with the sale throughout the year.

Risk reduction

When you are selling your product solely in the local market you can face a lot of challenges related to fluctuation in the domestic market. Larger the market place more will be the growth rate helping in company expansion. If you will stay bound to the local market your growth rate will be slow affecting your overall profit. If you export your product to different countries, all the countries will have different growth rates and a reduction in the sale of one country can be compensated by other.

Challenges in export business

Quality modification

When you are selling your product in a local market you can compromise a little bit on product quality, but this can never be an option in an international business. To meet the foreign need you will have to modify the product quality according to import restrictions, safety rules, and security codes. In the export and import business packaging matters a lot with the proper labeling. One of the worse Export Challenges in Jordan.

More financial risk

All the payments methods that are included in the export business are very time taking and complicated including prepayment, consignment, open account, or documentary. The export business also includes political risk, any fluctuation in a foreign market, or sudden reduction in product demand due to various reasons.

Cost issue

When you try to become a part of the international market, it takes a lot more effort and time to make a good enough place to start getting a good return. To make a place in a foreign market, marketing costs, travel costs, and other administrative costs related to starting an export business could be a bit difficult for a small size company.

License and documentation process

To sell the products in the foreign market many companies need to go through proper license and documentation. This documentation makes it easy for them to sell their product at an international level whereas less documentation process is needed to sell the product in the domestic market.

Market research

In the export business to sell your product in a foreign market, you need to know about the market properly to take any step. International market information collection is unquestionably difficult and time taking than collecting information about the domestic market.


Exporting business can help you get more investment return than domestic business but more careful planning, market knowledge, unique product, and good management are required to make an export business successful.

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Red Note: 30 September 2022

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