The ecommerce business in Pakistan will have a great future in the coming years. ecommerce business reached about $5.2 trillion globally in 2021. Moreover, By 2026, this number is expected to increase by 56% to almost $8.1 trillion.
Pakistan is following the global trend of adopting an ecommerce business model. Pakistan’s ecommerce sector is expanding due to the following reasons
- The number of people using the Internet is increasing rapidly
- The middle-class population is high who can purchase online products and service
- Covid-19 restricted life, and more people go for online shopping and now have a good experience online shopping
In this blog, we will take a detailed look at the ecommerce market in Pakistan. Moreover, we will also analyze some of the potential issues and opportunities available in the ecommerce business in Pakistan.
What is E-commerce?
E-commerce, often known as electronic commerce, refers to purchasing and selling products and services via the Internet. In today’s highly connected world, online shopping is not new. Also, it is not incorrect to state that the concept of doing business through the Internet has taken root in every location it has penetrated. Since more than 4 billion individuals across the globe have access to the Internet, online business has boomed into a huge industry.
It is common knowledge that time is almost always the key. Everyone is searching for a quicker approach or strategy that will allow them to accomplish much in the least amount of time feasible. The vast majority of consumers no longer prefer traditional methods of purchasing things. Because of this, we now consider the procedure to be one that is not only difficult but also wasteful of time. Ecommerce makes shopping a lot less difficult.
The convenience of modern smartphones means that you may shop from the convenience of your home by just unlocking the device, going online, and looking for an online store with a wide selection of products. You may have virtually everything delivered to your house with only the click of a button, and you can order almost everything you desire. Moreover, distance is not an issue while doing business online. Products may be sent to you from almost every country by traders selling their products.
It would seem that online shopping has restricted the traditional marketplace recently. Online transactions are becoming more attractive as a viable choice for business dealings among purchasers and vendors. That’s because there are several advantages to trading online, including convenience, accessibility around the clock, time savings, and, most crucially, financial savings. Ecommerce has an advantage over traditional market settings due to the presence of these elements.
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Ecommerce business in Pakistan
Many governmental organizations now provide their services to the public online. Pakistani private sector economy, there are presently four Pakistani airlines that provide e-ticketing, and practically all local banks provide online banking services. There are around 100 million Internet customers in Pakistan, which is likely to expand dramatically over the next five years, and this sector of the economy is expected to develop gradually. According to resources specific to the local trade industry, Pakistan will rank 46th among the most profitable areas for eCommerce in 2021, with revenues of USD 4.2 billion.
In addition, over 49.2 million people use Facebook in Pakistan, and many businesses in the country increasingly use social media for marketing their goods and services. The Pakistan Telecommunication Authority (PTA) reports that the country’s 3G and 4G subscribers exceeded 126 million by the end of February 2023.
You may do business online without having to lease a physical location. Put another way, you may forget about the stress of making monthly payments for utilities like electricity, water, and rent. You can begin selling your goods and services immediately from the comfort of your home if you use a mobile phone to connect with others online. The remarkable expansion of the Internet has made purchasing and selling items much simpler on an entirely new level.
Its expansion may be linked to several causes, including the increasing accessibility of smartphones available at low prices, the expansion of internet infrastructure, and the growing desire from consumers to complete their online purchases.
Ecommerce business challenges in Pakistan
Even though the ecommerce business in Pakistan is expanding. Moreover, the country is still struggling with several obstacles and challenges in the market. The fact that many customers still prefer to make purchases in person is a significant obstacle. Since there is widespread distrust in the security of online transactions. This distrust is partially attributable to worries over the safety of online transactions. Furthermore, the prevalence of fraudulent activity, and general ignorance are also the advantages of doing business online.
Another barrier that must be overcome for ecommerce to flourish in Pakistan is the small number of payment methods that are currently available. In Pakistan, cash on delivery (COD) remains the most common form of payment for online purchases. This method accounts for around 70 % of all transactions. The low adoption rate of digital payment methods such as credit cards, e-wallets, and mobile banking is responsible for using the COD method. Nevertheless, this is starting to change, as both the public and business sectors are pushing to promote digital payment methods and enhance the availability of such methods.
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Ecommerce business opportunities in Pakistan
Despite the difficulties inherent to the ecommerce sector in Pakistan, there are many chances for expansion and improvement. Almost 126 million individuals in the country now have access to the Internet, making this a promising market. Ecommerce companies stand to benefit enormously from this trend, particularly given the increasing number of people who have access to the Internet.
The development of social media as a platform for online shopping offers yet another opportunity. Businesses in Pakistan may use social media platforms for marketing their goods and reaching a broader audience. Moreover they can take advantage of the country’s high number of Facebook users. Many ecommerce enterprises in Pakistan are profiting from this potential by using social media to boost their sales and raise more people’s brand knowledge.
In conclusion, the government of Pakistan is taking measures to help the ecommerce business. These initiatives include the construction of a regulatory framework to oversee online transactions called “Raast,”. This support is expected to help the ecommerce business in Pakistan gain growth and success in the years to come.
Popular ecommerce niches
Ecommerce in Pakistan has a main focus on consumer accessories and products. Pakistani online customers are searching for the following items
- Online education and counselling
- Employment query
- Vehicle information, sale and purchase
- Real estate
- Financial assistance
Popular ecommerce Sites
We are sharing the most popular ecommerce platforms for your convince to start ecommerce business in Pakistan.
In conclusion, the ecommerce business in Pakistan is expanding fast. Which may be attributed to the widespread availability of smartphones and improvements in internet infrastructure. Since COVID-19 will significantly impact Pakistan’s business community starting at the beginning of 2020. In addition, Launching an eCommerce company is the best possible alternative for both new and established enterprises in Pakistan. Maintaining company operations may be made easier when you have an online storefront.