E-commerce is gaining momentum in Pakistan. According to the Annual performance Review published by the State Bank of Pakistan (SBP), the country has witnessed 1.2 million online transactions worth Rs. 9.4 billion during FY2017.
There are around 571 e-commerce merchants in Pakistan
The inclusion of 3G and 4G technologies have changed the way Pakistanis do most of their work. Instead of feature phones, we have smartphones that can handle not just our personal but also our professional lives as well. Instead of popping into a store, we prefer to look at various options on any of your favorite online marketplace and buy whatever we want in a matter of minutes.
The e-commerce stores who don’t have to bear most of the operational costs associated with brick and mortar businesses can offer various discounts, for instance, Yayvo.com is offering up to 80% off in its Black Friday Sale.
The consumers are attracted to the less annoying way of shopping and who doesn’t love a bit of discount on their favorite item.
Pakistan sees an annual business of worth Rs. 100 million through these e-commerce platforms. What’s remarkable is that currently out of the 200 million population, only around 40 million people are using the internet, a number which is bound to grow in the coming years.
Many people across the country are transitioning from feature to smartphones and will thus have the capability to step into the digital lifestyle.
Analysts from the private sector predict that by 2020 Pakistan’s e-commerce industry will be worth around $1 billion but we still have to take the news with a grain of salt as right now 95% of people still mistrust the online transaction system and prefer to pay on delivery.