Ecommerce is a dynamic business sphere in the past few years. There are many success stories of ecommerce start-ups that are increasingly being followed by new companies and small businesses. The future of ecommerce in Pakistan market is bright, as there is an ever-growing demand for the products around the world and Pakistan has a significant growth potential which can be tapped by these successful companies.

The History of Ecommerce in Pakistan

Ecommerce in Pakistan has a relatively short history when compared to other countries in the world. The first few years were focused on establishing the infrastructure and ecosystem necessary for ecommerce to grow. This included setting up payment gateway providers, logistics companies, and online marketplaces. The early 2014s saw a boom in ecommerce activity in Pakistan. This was driven by a number of factors, including the increasing penetration of internet and mobile phones, the launch of 3G/4G services, and a burgeoning middle class with disposable income. Pakistan’s ecommerce market is currently worth an estimated $2 billion. And it is projected to grow at a compound annual rate of 30% over the next 5 years, to reach $8 billion by 2025. The majority of ecommerce transactions in Pakistan are currently conducted on cash-on-delivery (COD) basis. But this is slowly changing, with more people using online payment methods such as credit/debit cards and mobile wallets. There is a growing number of Pakistani businesses that are selling online, both domestically and internationally. And there is an increasing number of foreign companies that are looking to tap into the Pakistani ecommerce market. The future of ecommerce in Pakistan looks very promising. The country has all the ingredients necessary for continued strong growth: a large population, increasing internet/mobile penetration, favorable demographics, and a rapidly growing middle class.

Pakistan’s e-commerce trends

Pakistan is still a largely untapped ecommerce market, with only around 1% of the population currently shopping online. However, this is changing fast, with a growing middle class and increasing internet penetration. By 2025, it is estimated that there will be around 60 million online shoppers in Pakistan. There are a number of key trends that are driving the growth of ecommerce in Pakistan:

1. Increasing internet penetration: Pakistan has seen a dramatic increase in internet users in recent years, with the number of users almost doubling between 2015 and 2018. This trend is set to continue, with increasing access to mobile internet and broadband.
2. Growing middle class: There is a growing middle class in Pakistan, with an increase in disposable incomes. This means that more people have the ability to shop online for items such as electronics, clothing and books.
3. Improving infrastructure: The Pakistani government has been investing heavily in improving infrastructure, including building new highways and expanding the airport in Islamabad. This is making it easier for people to travel around the country and access online shopping sites.
4. Favourable demographics: Pakistan has a young population, with over 60% of the population under the age of 30. This demographic is typically more engaged with technology and more likely to shop online than older generations.

The Future of Ecommerce in Pakistan

It is estimated that by 2021, ecommerce will account for 10% of all retail sales in Pakistan. This is a significant increase from the current 2% share of ecommerce in the country’s total retail market. The growth of ecommerce in Pakistan is being driven by a number of factors, including the increasing penetration of internet and mobile phones, the growing middle class, and the rising popularity of online payment methods. Pakistan has a young population, with over 60% of the population below the age of 30. This demographic group is more likely to be comfortable shopping online and using digital payment methods than older generations. The country also has a large number of unbanked individuals, which presents an opportunity for fintech startups to provide innovative payment solutions that can make online shopping more accessible. The Pakistani government has been supportive of the development of the ecommerce sector, and has taken steps to improve internet connectivity and reduce barriers to entry for businesses. In 2018, the government launched an ecommerce policy that includes a number of initiatives to boost the growth of online shopping in Pakistan. These include investments in infrastructure, simplifying regulations, and providing tax incentives for businesses that sell through ecommerce platforms. The future of ecommerce in Pakistan looks bright, with strong growth prospects driven by favorable demographics and supportive government policies. With its large population and rapidly growing economy, Pakistan has the potential to become one of the leading markets for online shopping in South Asia.

Challenges for the future

There are a few key challenges that will need to be addressed in order to ensure the future success of ecommerce in Pakistan. Firstly, logistics and infrastructure need to be improved in order to facilitate speedy and reliable delivery of goods ordered online. Secondly, awareness of ecommerce and digital payments needs to be increased amongst the Pakistani population, who are still largely unfamiliar with these concepts. Finally, greater trust needs to be built amongst consumers in relation to online shopping, as currently many people are unwilling to make purchases online due to concerns about security and fraud.