Is doing e-commerce business lucrative in Pakistan?
Market size: Pakistan is the 46th largest e-commerce market, with an estimated revenue of $5.2 billion in 2023. According to trade.gov, there are more than 7.3 million Facebook users in the country and still growing. Social media marketing is a major source of conducting marketing and sales activities in the country, with local and international companies selling and offering services and taking benefits from Pakistan marketing, doing robust or performance marketing. The forecast by statista.com shows the annual growth rate from 2025 to 2029 is going to be $6.8 billion approx. The Pakistani economy is still largely a cash-based, informal economy. The majority of transactions are still carried out in cash.
Current Market Trend: Consumer goods and accessories are the primary focus of Pakistan’s e-commerce market. Based on Google Keyword Planner, we discovered that the majority of search queries were related to consumer electronics, mobile phones and accessories, computers and related computer peripherals, online education and counselling, and employment. Google has seen a significant increase in searches for clothing businesses, perfume impressions made in Pakistan, and footwear in recent days, based on our analysis using Google Keyword Planner.
Famous e-Commerce Sites
Some leading eCommerce websites in Pakistan include:
- OLX
- daraz
- Spotify
- PakWheels
- Zameen
- Shophive
- Naheed Super Market
- Cheetay
- Food Panda
- Priceoye.pk
Opportunities for newcomers launching an online store in Pakistan: Print-on-demand t-shirts, oversized t-shirts, football-related products, home decor, footwear, men’s formal shirts, women’s clothing, and artificial jewelry and mobile accessories. A recent increase has been seen in problem-solving products, meaning newcomers must research and find products that help households or consumers to solve issues, for instance, choked drainages in homes, rusting parts, car wax, car polishes for brittle head or rear lights, emblem polishers, moisture removers, and contact cleaners for daily-use electronic products.
Key factors to run a successful e-commerce business: Always research products life cycles before entering the business market; the most important buyers are middle-class persons or families, so keep in mind if your products cater to the middle-class tier, it will surely help your business in the long run. Doing food business is also lucrative in the Pakistan market and has seen an uptick trajectory in recent years.
Frauds and their implications: The user trust is very important, and one of the major challenges for e-commerce businesses to retain customers is that there are many brands that enter the market and do fraudulent activities, which affects other legit businesses.
Cash on delivery: Mostly brands offer cash-on-delivery options, which are safe, but still, they have many loopholes, and scam brands deceive users. On the other end, brands also face bogus orders and order rejections, which cost brands to pay courier charges, causing them revenue losses and time spent on orders.
Revenue:
Notes: Data was converted from local currencies using average exchange rates of the respective year.
Most recent update: Oct 2024
Source: Statista Market Insights
Key Players e-commerce businesses in Pakistan
Most recent update: Oct 2024
Source: Statista Market Insights
To run an e-commerce business, one must have the following:
- User-friendly website
- Products in demand
- Problem-solving products
- Targeting middle-class population
- Local SEO
- SEO, on-page, off-page, technical and semantic
- Proper keyword research and SEO-optimized content in websites
- Questions and Answers page
- Refunds and returns policies
Platforms for e-commerce
- WordPress sites, WooCommerce integrated
- Shopify
- Wix
- OpenCart
Career Connection Consulting is here to help you to build your online e-commerce stores, We have strong expertise; contact us and we will take care of rest of the things
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