I have lost count of how many times, I have credited Covid for flourishing the e-commerce industry worldwide. However, it is a reality as digital shopping has evolved quite drastically since 2020. The well-developed countries such as USA and UK have managed to acquire benefits from e-commerce, and others that have a struggling economy have managed to gain as well. Pakistan is one of those countries, that has been identified as the fasting growing E-commerce country. Pakistan’s growth rate in E-commerce has been quite surprising as the country had uncertain revenues prepone Covid. Being home to popular E-commerce sites such as Farosh, Pakistan is marked as the 37th largest market for the digital platform. According to the latest business statistics Pakistan has managed to grow its revenue to US 7.6 Billion in 2022.
Whereas in 2021, it made a generous profit of Us 5.9 billion. It clearly shows that the revenue has been boosting rapidly in the South Asian country since consumers have shifted to online shopping portals. Pakistan’s popular E-commerce sites play a major role in adding big numbers to the country’s fiscal years. It is strongly speculated a major chunk of the good profits came through electronics, as it is one of the most popular categories in the country. Food and media are said to be other contributions to the growth of E-commerce in Pakistan. I hope this answers your curiosity about Where Pakistan stands in E-commerce? However, accomplishing impressive progress in the digital marketplace, clearly depicts what is e-commerce in Pakistan and how it affects the economy. Here are the 6 types of e-commerce Systems in Pakistan and their quick descriptions, that have helped the country to move in a better direction.
- Business to Business (B2B)- the exchange of goods and services between two companies digitally
- Business to Consumers (B2C)- the trade of goods or services through an online store.
- Consumer to Consumer (C2C)- the process of selling goods between two consumers.
- Consumer to Business (C2B)- the operations where the consumer provides the business with a service or goods.
- Business to Administration (B2A)- the e-commerce system where a business provides digital tools to government officials.
- Consumer to Administration (C2A)- An online platform where customers can interact with government portals digitally.
E-commerce in Pakistan Needs Improvement to Succeed Further
Although there are different systems of e-commerce that drive the industry, major improvements are demanded in the B2C model. The Business to Consumer model plays a vital role in boosting Pakistan’s rank as a successful e-commerce country. There are still some factors that need to be improved on before Pakistan ranks further higher on the list of E-commerce friendly countries. The following are the problematic aspects that need to be solved to make the country more successful in E-commerce and erase questions such as whether is e-commerce real or a scam in Pakistan.
- Delivery of Incorrect Products
- Adding an Incomplete Product Description
- Providing Defected Items to the Customer
- Dishonest Commitment to Delivery Time
- Offering No Installment Plans
Delivery of Incorrect Products
This is one of the most common issues people face while placing orders on digital shopping platforms. Customers are left heartbroken when they receive the complete opposite of what they have ordered. Needless to say, they feel jeopardized and drift away from online shopping. Such harmful acts from deceitful sellers tarnish Pakistan’s Growth Rate in E-commerce and discourage people from investing their money in the industry. However, Farosh, one of the popular e-commerce sites in Lahore, has strict guidelines against such acts and ensures its customers receive what they paid for. Such strict actions taken by other online shopping portals can turn Pakistan’s E-commerce into a more reliable platform for online shopping.
Incomplete Product Description
When a customer land on a website to purchase a product, it is crucial for the product description to be accurately informative as it influences the final decision of the consumer. A lot of websites, tend to ignore the detailed description which leads to numerous abandoned carts in a day. When a customer fails to understand the usage or benefit of the product, it is understandable that he/she will abandon their carts within a blink of an eye. Incomplete product descriptions often raise doubts such as whether is e-commerce real or a scam that kills the potential sale.
Providing Defected Items to the Customer
The rise in inflation in the country has given birth to dishonest sellers who wrap up defective items and deliver them to the customers. Such scams are quite common, with orders that are prepaid through credit cards or mobile wallets. Frauds like these have become one of the more prominent reasons why people still scare away from E-commerce and prefer shopping in person. These kinds of acts doubt the value of trust online and raise concerns about where Pakistan stands in E-commerce.
Dishonest Commitment to Delivery Time
The moment a customer places an order online; he/she can simply not wait to receive the delivery. However, many sellers or brands online quote incorrect estimations of delivery which puts customers into the pain of following up with the brands through various text messages and phone calls. Apart from other reliable Pakistan Popular E-commerce Sites, Farosh goes to extreme measures to ensure timely delivery to its customers. The Lahore-based online shopping mall guides its sellers to quote the correct time of delivery so that it does not cause any kind of inconvenience to the customers.
Offering No Installment Plans
The good thing about the E-commerce industry in Pakistan is, that online shops offer multiple payment options to make the purchasing method easier for its consumers. Commonly, cash on delivery, Credit/debit cards, and mobile wallets are offered on the checkout pages of the online store. However, majority of the e-commerce businesses do not offer installment plans which are already a norm internationally. The process of making the payment into four divisions is a kind of installment plan that would bring ease to the consumers amidst the rise of inflation. Such changes can create a more positive impact on Pakistan’s Growth Rate in E-commerce.
Trust-worthiness Builds a Stronger Community
Whether it is a seller or a buyer on the digital platform, it is very important for both parties to play their role truthfully. At times, sellers might find loopholes to ditch the buyer through unethical behavior. However, sometimes, buyers also create unwanted challenges for online vendors. Incidents are often reported, on social media where customers don’t accept the delivery after having a simple change of mind. Such cases are said to happen with “Cash on Delivery” orders. Moreover, a lot of the time, customers are unavailable to receive the delivery even though the company has confirmed their presence prior to the delivery.
Such acts of carelessness lead to the company bearing the cost of the undelivered order, which can be a huge pullback for small businesses. With such cases noted, it raises the question of where Pakistan stands in E-commerce and what is E-commerce in Pakistan to the nation. Needless to say, the success of digital commerce is as crucial as oxygen is to the human body. E-commerce not only promotes a stronger economy but also frees a nation from the hefty costs of starting up a business and much more.