All About E-Commerce

SCOPE, CHALLENGES AND FUTURE OF E-COMMERCE IN PAKISTAN

The International Trade Association classifies Pakistan as a cash-based informal economy, indicating that the majority of transactions in the region are settled in cash.

The tremendous growth rate of e-commerce in this kind of economy motivates people to explore this market.

Historically, online e-commerce retail sales have been relatively low, but since COVID-19, the statistics have changed dramatically, opening up many opportunities for online businesses.

This article focuses on the scope, obstacles, and prospects of Pakistan’s e-commerce sector. Pakistan ranks as the 37th largest e-commerce market in the world. It is estimated that in 2021 this market will bring in sales of US$5.9 billion. His projected sales for 2022 are $7.6 billion, which means that the site’s revenue is growing rapidly due to his web-based shopping of shoppers.

This may be due to the fact that COVID-19 has drawn customers to e-commerce. E-commerce, on the other hand, was already a popular platform even before the outbreak of the novel coronavirus disease (COVID-19).

As can be seen in the chart below, the study also revealed that revenue was generated in various markets, especially media, electronics, and food. However, the strongest market in terms of sales is hardware, accounting for the largest share of sales.

As more and more big doors open, so does the challenge of developing a winning strategy.

There is no denying that Pakistan has an opportunity for e-commerce growth, but several issues are hindering the growth of online platforms.

Another problem is the distrust of online payments. Additionally, there are numerous preferred installment strategies. However, according to Statista, users continue to opt for cash delivery because they don’t trust online payments.

However, by 2025, cash on delivery will become less common and card payments will become the most popular method of online shopping.

Some customers report a negative product experience when shopping online. These may be fake surveys on Internet business sites that companies use to mislead customers into closing deals.

These factors can make people mistrust other brands with positive reviews. The fate of Internet businesses is also centered on the substantial capacity of the market.

Global e-commerce sales are also expected to grow in the coming years as the middle classes in East and Southeast Asia grow and interest in brick-and-mortar stores wanes.

According to Statista, annual revenue growth from 2022 to 2025 is expected to reach 6.09%. Customer growth also expects to reach 65.1 million by 2025.

According to credible sources, Pakistan’s top 3 design brands are earning millions of dollars due to the rapid development of their business and revenue. Technological advances and brands’ online presence are likely to reduce the use of traditional brick-and-mortar business models in the not-too-distant future. Such factors will also help promote the country’s currency development.