The ecommerce industry is flourishing in Pakistan. In fact, it’s not just flourishing, it’s a major player in the country’s economy! According to a 2017 report by KPMG, the Pakistani ecommerce industry was worth $2 billion and is projected to grow to $4 billion by 2020. The increased adoption of smartphones has also contributed to this rise in ecommerce. However, there are still some challenges and opportunities that remain for the industry when it comes to expanding its market share. Here are some ways we can help ecommerce grow in the future.
The Ecommerce Industry in Pakistan
The ecommerce industry in Pakistan is worth $2 billion and is set to grow even more by 2020. One major challenge that the industry faces is a lack of trust. In a country where personal security is often at risk, consumers are not yet confident enough to spend online. This lack of trust has also made it difficult for ecommerce companies to invest in customer retention strategies.
Another challenge that ecommerce companies face in Pakistan is a lack of awareness about what types of products are on offer and how people can use them. The ecommerce industry offers a wide variety of items, from cosmetics to clothes and electronics, but there isn’t always an understanding among customers about what products are available or how they can be used effectively.
One major opportunity for the future of Pakistani ecommerce is the increasing adoption of smartphones. With an increasing number of people using their mobile devices as their only source of internet access, Pakistani ecommerce looks set to grow rapidly in the coming years!
Challenges Faced by the Ecommerce Industry
In terms of challenges faced by the ecommerce industry in Pakistan, there are a few major ones. One is how people still prefer to shop in physical stores and there’s also the lack of knowledge about shopping online.
According to a study by Google and Ipsos Mori, only 9% of Pakistanis have shopped online before. This number would likely skyrocket if it were easier to buy from international sites and if those sites offered more flexible return policies and shipping options. Not being able to easily shop international sites is due to strict customs regulations that make it difficult for Pakistani businesses to import products from abroad.
Another challenge faced by the industry is the lack of education about ecommerce and digital payments methods. Though there has been an increase in awareness over the past few years, there’s still much work left to be done when it comes to educating consumers on what they need in order to be able to use ecommerce platforms effectively.
What Role Should Government Play?
The government should not play a role in the ecommerce industry in Pakistan. As the industry continues to grow, it will face more challenges and opportunities that need to be addressed. The government should not be able to regulate or interfere with this growth. In fact, they should stay away from it all together!
Potential Solutions to the Challenges
Pakistan’s ecommerce market is still in its early stages, which means there are opportunities for growth. For example, one solution to the challenges would be to increase internet connection speeds in the country. This would make it easier for customers to browse online, buy products and complete transactions. From a business perspective, this would also make it easier for brands to improve their SEO rankings. Another challenge is that many Pakistani consumers are wary of using their credit cards on digital platforms due to high levels of cybercrime and fraud. Brands can work with financial institutions and banks to find solutions and create more secure ways for people to pay digitally.
The Pakistani economy has been in turmoil over the past decade and the challenges faced by ecommerce companies in the country are no exception. Despite these challenges, Pakistan’s ecommerce industry has grown at a rate of 29% annually over the past five years, outpacing the global average of 18%. A recent report from PricewaterhouseCoopers states that there are a number of opportunities for ecommerce expansion in Pakistan, with particular promise for the fashion, mobile services and financial sectors. The government can play a role in supporting this growth through providing education and support for ecommerce companies as well as developing policies to ensure a fairer market.