E-commerce has emerged with miraculous speed in Pakistan bringing in novel and exciting businesses, organizations, start-ups, and customers. The market size of Pakistan’s E-commerce has grown by 35 percent to 96 Billion rupees during the first quarter of the year 2021 in comparison to 71 Billion rupees of the previous fiscal year 2020.
In Pakistan, after the Covid 19 pandemic hit, the e-commerce landscape has completely changed. This is because now people elude to step out of the home. They order their necessities online whether it is sanitizers, masks, groceries, or life-saving pills and medicines. This is another comfort level that the people of Pakistan have realized.
The E-commerce industry will provide Pakistan a sector that would assist the residents to make an effort towards bringing wealth to the country. According to the reports, Pakistan will be able to increase IT exportation by 25 percent in the year 2022.
With the emergence of the e-commerce sector, the livelihoods of individuals have improved. It has also contributed to structuring competitive enterprises and increased the share in worldwide trade. The regulations and promotions of the e-commerce sector would be more substantial as regards giving employment opportunities for more than 0.13 billion over the next 20 years.
The E-commerce sector, particularly in Pakistan, has empowered youth to create their jobs, start businesses and do entrepreneurship. For this purpose, several educational institutes have played their role to produce the finest individuals having entrepreneurial insight and wisdom.
This is one of the biggest and successful ventures of e-commerce in Pakistan, that it has shifted the shoppers to shop from online platforms that provide adaptable and multipurpose personalization features, with iconic in-store experiences, and rationalized checkout procedures. With the eye-catching websites for different online stores at their finest functionality, the stores of e-commerce have considerably enhanced not only their online engagement and traffic but have also significantly increased conversion rates/proportions in Pakistan.
Even though the E-commerce sector is growing at a faster pace in Pakistan but it also faces some challenging issues as well that includes multiple taxes on various ICT products, payment gateways, and the absence of e-payment regulations.
Another biggest issue to slow adoption of e-commerce in developing countries like Pakistan is the unavailability of the absence of credit convenient payments solutions to a huge population
Following are the major challenges that the e-commerce sector has to tackle in Pakistan:
- Trust issues
- E-payment frauds
- Cart Abonnement in E-shopping
- Unauthentic shopping stores and websites.
- Customer retention
- No long term profit growth
- High taxes rates
- Not finding the right/targeted audience
- Language hurdle
All of the above challenges are faced not only by the buyers and customers but also by the sellers. There are so many fake and unauthentic shopping websites of several brands that have made online shoppers think twice before placing a new order.
Pakistan Government should play its part to enable such an environment that helps in developing the e-commerce to an advanced level. This sector itself is a wider opportunistic platform for youth. There is a number of female entrepreneurs who are motivated enough to start their own online business from home. These platforms have created jobs for a huge number of people where the complete supply chain process from raw material to manufacturing, to making a final product to taking online orders and sending it to the clients is all set.
Stepping into the e-commerce market is certainly a great opportunity for those who want to start their businesses. There is a number of retailers who have started to sell their services and products online besides focusing on physical selling, particularly brands that have adopted this way of selling their products online and physically both. Even they keep their customers informed about the new arrivals and upcoming sales so that more and more traffic could be generated on their websites and more people shop from their online stores.