Online shopping in pakistan with free home delivery

Online shopping in Pakistan has been around for a while now. However, it couldn’t gain quite a traction and significant growth in the past as it is getting now. As Pakistan’s internet community increases, so will e-commerce. Although a majority of consumers still prefer to do their shopping the old way – by going to conventional markets and shopping malls, with around 30 million internet users in Pakistan, this trend will change with time.

As a large number of businesses are switching towards e-commerce by making a prominent online presence. Customers are also getting used to the ease of purchasing products with a few clicks so, it is a fast-growing audience.

Online Shopping in Pakistan has become very simple because of the introduction and growth of the major online markets. One of the reasons why Pakistanis are switching to web buying in that they don’t want to rush into the nauseating traffic for a long time. The weather in Pakistan has elevated many folds over the last decade, and therefore, people think twice before going out to shop outdoors. People have started trusting internet shopping more and more because a majority of the online sellers offer Cash on Delivery (COD) and good return policies. Also, the majority of the Pakistani nation is job oriented and they rarely get time to go shopping in a physical shopping market. Online shopping provides them with the pleasure of saving both their time and energy.

What Challenges do Pakistani Startups Face?

Online shopping market is still young in Pakistan and people are desperately looking for a trusted online selling giant. But big giant like Amazon still doesn’t operate locally in Pakistan, which has left the void for local businesses to fill. These businesses have to spend a handsome amount of money on digital marketing to attract new customers. Pakistanis are both price and sales conscious which require these businesses to design and implement a unique strategy, not only to attract new customers but to maintain a long-term business relationship with their customers. As a result, we observe targeted advertisements, discount packages, promotional events, and free delivery services all the time.

Facts and Numbers:

Although, the online shopping in Pakistan has not reached up to its potential and there is still a lot of room to fill but the numbers have gone up exceptionally in the last five years or so. As per a report of State Bank of Pakistan, the number of registered e-commerce vendors has risen by 2.6 times and e-commerce payments have surged 2.3 times in only twelve months. Pakistani e-commerce community witnessed a major surge in e-commerce as the online transactions went from Rs 3.9 billion to Rs 9.1 billion in only a year. The state bank of Pakistan also reported that around Rs 800 million payment transactions totaling Rs 4.5 billion were booked in the last quarter of 2017. These numbers are significantly larger than the Rs 2 billion of e-commerce payments that occurred in the same period of 2016.

The real value of e-commerce sales is likely to be several times higher than the above-mentioned numbers by SBP because they only report transactions that occur through credit or debit cards. But Pakistani consumers usually use the Cash on Delivery (COD) system to purchase goods online. As per a certified estimate, nearly 85% of online sales occur through COD. According to this information, we can speculate that almost Rs 26 billion of e-commerce transactions were made in the last quarter of 2017 through the COD system.

Pakistan Telecommunication Authority stated that Pakistan’s e-commerce market could grow $1 billion by 2020. However, experts believe that Pakistan could achieve that $1 billion mark by 2019.

The size of the Pakistani e-commerce market will still be tiny at $1 billion, as Global retail sales are expected to be around $3 trillion this year.

Men Vs Women:

According to a report by a private news channel, there are certain peak points when Pakistanis do most of their online shopping. They mostly shop online between 2:00 PM to 8:00 PM. Reportedly, only 30% of these online shoppers are women and the rest of 70% are men.  The main reason why Pakistani women are not buying from the web is that they prefer the first-hand experience before they decide to buy something. Most of Pakistani women tend to judge and test the product before buying; therefore, they are very skeptical about buying online. However, the overall trend has started to change rapidly due to the rapid growth in online marketplaces. Their trust is growing because most of the brands are very much into e-commerce and women generally show brand loyalty more than men do.

As our economy expands and more people have access to the internet, the country will likely witness a major surge in e-commerce activity. Asad Umar, the Minister of Finance, has declared that the upcoming budget will provide relief to small businesses and e-commerce marketplaces in Pakistan. With this positive intent from the government of Pakistan and major improvements in the shopping experience, we can expect online businesses to grow exponentially in Pakistan.

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