E-commerce in Pakistan: A Comparison With Other Developing Countries
Pakistan is not an exception to the ongoing evolution of the e-commerce globe. E-commerce in Pakistan has grown significantly in recent years as a result of increased internet use and smartphone usage. But how does Pakistan’s e-commerce market compare to that of other developing nations?
In this article, we’ll examine Pakistan’s E-Commerce situation in more detail and contrast it to that of other emerging nations.
According to research by the State Bank of Pakistan, E-Commerce in Pakistan has increased over the past five years at a compound annual growth rate of 20%. This exceeds the 14.6% worldwide average by a wide margin. According to the survey, Pakistan’s e-commerce business is anticipated to grow to $1 billion by 2023.
What Does the World Say
Pakistan still lags behind other emerging nations in terms of overall e-commerce adoption, though. According to a UNCTAD assessment, Pakistan has a far lower percentage of e-commerce penetration than the rest of the world, at 2.6% as opposed to 14.1% globally. Compared to nations like India (3.8%), Brazil (7.8%), and China (24.3%), this is much less.
One of the main reasons for the miserable E-Commerce penetration in Pakistan is the lack of trust in online transactions. Most customers feel reluctant to give orders online. The main reason is the infrastructure of Pakistan that does not support the delivery of goods on time. Most of the surveys taken from different sources create this gossip. A survey by the Pakistan Software Houses Association for IT and ITES (PASHA) found that only 27% of Pakistanis trust online transactions, compared to 69% in India and 85% in China. This lack of trust is partly due to the lack of regulations and a legal framework for E-Commerce in Pakistan.
As we mentioned above, one of the main reasons for customers’ dissatisfaction with online business orders is the weak infrastructure and logistic support. The country has a poor road network and a lack of reliable delivery services, which makes it difficult for E-Commerce companies to reach customers in remote areas. This is in contrast to countries such as China and India, which have invested heavily in their logistics and delivery infrastructure.
Despite these challenges, there are a growing number of E-Commerce startups in Pakistan. These startups are focusing on niche markets and are using social media and digital marketing to reach customers. For example, Daraz, an E-Commerce platform in Pakistan, has seen a significant increase in sales during the COVID-19 pandemic, as customers turned to online shopping to avoid crowded markets.
E-commerce and Developing Countries
E-commerce has revolutionized the way people do business around the world. With the rise of the internet and mobile technology, e-commerce has become an important platform for buying and selling goods and services. While e-commerce has been a popular trend in developing countries for many years, it is now gaining momentum in developing countries as well. In these countries, e-commerce has the potential to create new economic opportunities, drive innovation and entrepreneurship, and increase access to goods and services. However, there are also challenges that must be addressed, such as the need for infrastructure, digital literacy, and policy reforms. This article will explore the opportunities and challenges of e-commerce in developing countries and its potential to transform the global economy.
E-Commerce in South Asia
Modern technology is being utilized by Southeast Asian nations to improve the lives of their citizens. Singapore stands out with the highest per capita e-commerce spending, surpassing Thailand’s e-commerce spending by over three times, and having more than eight times the m-commerce spending of Malaysia. Despite its low per capita spending, Indonesia is projected to become the third-largest e-commerce market in Southeast Asia. Some Southeast Asian nations have high levels of cross-border e-commerce, with 55% of e-commerce in Singapore and 40% in Malaysia being conducted across borders.
There are also significant discrepancies between how mobile and the internet are used in urban and rural locations all over South Asia. According to recent research, there is a 22 percent difference between poor rural and urban areas of India, Pakistan, Bangladesh, and Nepal in terms of the ownership of mobile phones. In urban India, there is a 14% gender discrepancy in internet usage, whereas this difference is 27% in rural India. In Pakistan, the proportion of women using the Internet in urban and rural regions varies between 40 and 49 percent. All of these statistics obviously demonstrate the barriers between men and women, as well as between urban and rural areas, in South Asian nations.
In conclusion, after studying E-commerce in Pakistan a compared it with other developing countries. Now, we know much about the actual stage of e-commerce in Pakistan. Although there has been significant growth in this sector in the South Asian region, still it has a way to go. The growth rate between these countries varies largely. The gender disparity and urban-rural gap in the use of the internet and mobile is other areas of concern and it needs to be addressed urgently. Even after so many years of growth none of the South Asian countries have any comprehensive policy to regulate the industry and safeguard the interests of buyers and sellers. Much work is needed to be done in strengthening the digital infrastructure, especially in smaller countries like Nepal and Sri Lanka.
If you enjoyed reading this post, be sure to check out our other article, E-commerce is Changing Retail Landscape in Pakistan,” for more informative and engaging content.
Is eCommerce Growing in Pakistan?
In Pakistan, yes, e-commerce is expanding. Due to growing internet usage and the accessibility of digital payment alternatives, the country has seen a major rise in online shopping.
What is the Example of E-commerce in Pakistan?
One example of e-commerce in Pakistan is Daraz.pk, which is an online marketplace offering a wide range of products from clothing and electronics to home and beauty items. Customers can browse, select, and purchase products from the comfort of their own homes, and have them delivered right to their doorstep.
Is Amazon E-commerce Successful in Pakistan?
No, Amazon is not successful in Pakistan because the nation lacks a specific marketplace for its products. Pakistani customers can still buy items from Amazon’s global website and have them sent to Pakistan, but this can be expensive because of shipping and customs fees.