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Running Head: E-Commerce in Pakistan 1

Running Head: E-Commerce in Pakistan 2

E-commerce or E-Business is the idea which has shifted the human lives from 0 to 180, it

would not be wrong if I say that it has saved our money by saving our time as Bejamin Franklin

once said “Time is money”. E-Business refers to buying and selling online. All type of

transaction that is done online is part of this business. And these days it’s impossible to work

without not having knowledge of this market, It consumes mobile-commerce, electronic funds

transfer, supply chain management, internet marketing, online transaction process, electronic

data interchange, inventory management system, and automated data collection system. As this

market is growing rapidly so every person or every business man is trying or have moved to this

system. Because life is getting so busy day to day that people don’t find time to visit the markets

and get the product themselves. On other hand internet has make it easier that they can get the

product online which save their time. It’s was a great idea as it is beneficial for both buyer and

seller. The best part of this market is that there is no monopoly in the market, competition is

perfect. It absorbs every buyer and seller. Amazon.com leading shopping site on the internet and

it’s CEO Jeff Bezos is the 3rd richest person in the world, he was number 5 in 2016, while his

name was not in the top 10 list in 2015. Same as Mark Zuckerberg CEO of Facebook also comes

in top 10 list of world’s billionaire and also the youngest in the list. America and China are the

leading countries in E-commerce by generating maximum revenue through E-marketing. They

also have the maximum number of websites. And they are playing an important role in GDP of

their countries.

Now if we talk about Pakistan where the literacy rate is 56.4% and the number of internet

user is only 9.0%, Pakistan is still generally money based casual economy. The larger part of

exchanges is directed in real money, aside from those that are extensive and require a bank draft

or pay arrange. A few investigations propose that up to 60% of the economy is casual, with the
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lion's share of nearby organizations, especially SMEs, undocumented and outside the expense

net. Various government offices have begun to offer administrations through the Internet. In the

private part, 3 Pakistani carriers now offer e-ticketing and every nearby bank offer web based

saving money administrations. This fragment of the economy is relied upon to develop

consistently as there are roughly 40 million Internet endorsers in Pakistan and this figure is

normal twofold amid the following five years.

Internet business drifts crosswise over Pakistan relating to in-advertise fragment has

stayed much inclines towards gadgets and cell phones of late. Since cell phones, for example,

cell phones and tablets have settled on an immense number of decisions and a lot of data

accessible at fingertips, online clients in Pakistan are generally keen on seeking about and

obtaining Consumer Electronics and Mobile Phones, trailed by Employment Queries, Online

Education and Counseling, Sale/Purchase and Information Gathering for Autos and Vehicles,

Computers and Accessories, Financial Services, Laptops and Notebooks, Motor Vehicles by

Brand, Test Preparation and Tutoring and last however not the slightest, Apparel and

Accessories. In this research paper we are going to discuss the

1) Comparative analysis of E-Business in Pakistan with neighboring countries.

2) How E-Business can grow in Pakistan?

E-commerce is driving this world crazy but rationally. In Pakistan we have some major

ecommerce websites. People misunderstand e-commerce as the shopping of dresses and shoes

but this is not it. People makes e-commerce limited but in reality it’s a massive term for any kind

of online trading. It’s not a particular term instead, it’s a general term for many things going on
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online electronically. Below we have some major websites that are working in Pakistan. As Bill

Gates said, “If your business is not on internet, then your business will be out of business.”

1. Olx.com.pk is doing great in Pakistan. It’s not just a place for sale and purchase of

second hand goods but it is also a service provider website, advertisement for different

brands and also jobs for the locals.

2. Daraz.pk is top ranking website when it comes to e-commerce in Pakistan. It is basically

a shopping site for clothes, shoes, home appliances, electronic products, brands and many

other goods and services. It also works as an advertising agent, technically.

3. PakWheels.com is specifically a website for automobile industry in Pakistan. It works as

an information agent for costumers to give information about new vehicles, used

vehicles, new arrivals and new launches of vehicles. It provides a comparative service to

all the costumers of different automobiles. This e-commerce website has their own

appropriate blog where they write regularly about anything new in the industry.

4. Zameen.com this e-commerce website is for the sale, purchase and rent a property. This

website provides a platform to the owners to sell and costumers to purchase the property

of their own choices. It works all over the country. This website is a big name in real

estate industry.

5. Kaymu.pk is place where you can sell and purchase anything to any potential costumer. It

is not just a shopping website but also a selling website, just like olx.com.pk.

6. Shophive.com this e-commerce website is offering all the products all over the Pakistan,

with a free delivery system. They have many national and international companies
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working with them. Its major focus is electronic products like smart phones, laptops,

television, projectors, video games, cameras and many others.

In India e-commerce is the rapidly and immensely. India is among leading e-commerce

markets in the world, despite of a fact that it is still a third world country. As Culsha Sherlock

said, “E-commerce is a force that no investor can afford to ignore”. It is a fastest growing factor

of e-commerce in India. In India e-commerce is working as domestic trade, cross border trade,

B2B, B2C, single brand trade and multi brand trade.

Information technology is the fastest growing field in India so with the aspects of it, brings e-

commerce at domestic level and made it just so easy for everyone. The local e-commerce

websites such as Snapdeal.com, Jabong.com, Flipkart.com, 99acres.com and TataCliq.com are

the most famous and visited websites in Indian e-commerce market.

Cross-border refers to import any product from another country that we can say from

across the border. Cross-border trade is majorly focusing on the American brands for trade in

India. In India websites like Amazon.com, Ebay.com and Alibab.com has made a huge

revolution in e-commerce field. These websites made it so easy to have an American brand at

your doorsteps in some working days. Cross-border trade has its own advantages so it has some

disadvantages like, high prices, high shipping cost, government taxes, hidden charges and extra-

duty charges.

E-Commerce has touched an immense level of business by digitalizing everything such as:

When it comes to tourism, they have Goibibo.com, Trivago.com and Yatra.com

When it comes to entertainment India have bookmyshow.com and Netflix.


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When you talk about real estate India has 99acres.com, Magicbrick.com and housing.com.

For online payments India has PayTM.com, Freecharge.com, PayUmoney.com and

PhonePe.com.

Japan is the world’s third largest and one of the most powerful countries in the world. In

Japan travelling and hotel booking has got the highest ratings in e-commerce digitalized

platforms. 91% flights and 86% hotel booking was done online in 2015. Following the trend

insurance services and music services has got the next positions in Japan.

Digital marketing has got an enormous attention of Japanese people. Digital marketing has made

advertisement for any product mandatory in every sense. Digital marketing has made a bright

path for all the businesses in Japan. Payment are also important, as we know that debit card and

credit card are the two methods and now E-Wallet and E-Payment has got a lot of attention in

Japan.

The most important and chief e-commerce companies in Japan includes: Rakuten.com,

Apple and Yahoo. For departmental groceries and stores, Daimaru.com, Aeon.com, Isetan.com

and Seibu&Sogo.com. For the clothing in Japan, ZozoTown.com, TrinityArts.com and

Origami.com are the major outlets. For books and media consumption they have: Bookf-

Off.com, Sanyodo.com and Tsutaya.com. China is the world’s largest country and one of the

most powerful countries as well as the largest e-commerce market of the world. China holds 40%

of the world e-commerce business.

According to the research of Dezan Shira Associates, the domestic e-commerce market of

China is covered and dominated by Alibaba.com, TMall.com and JD.com. The rest of the share
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is hold by the local websites like: Amazon.com, 360buy.com, SuningandGome.com,

QQbuy.com and Dangdang.com and many more.

Cross border trade in China is giving a lot of opportunities to the US companies to enter

the market. According to the China’s ministry of commerce cross border companies have two

ways to enter the market, one is that they directly sell their product to the costumers online or

electronically and deliver the product and the other way is to have an outlet in China. Having an

outlet is like having a company’s subsidiary in China. Well, in today’s time American companies

can take a full advantage of cross border trade facility to enter the Chinese market of e-

commerce. Making e-commerce grow in an enormous way is not an easy task and in a country

like Pakistan where we lack many resources like: electricity, power, transportation and many

others. E-commerce is still a growing industry in Pakistan and we have a lot of bloopers and loop

holes in our systems that must be fixed. As I have mentioned before that we belong to a 3rd world

country and in our country most of the people don’t have a bank account and those who have

don’t use their debit and credit cards for online shopping.

Unspecified location is another big issue that people face who live far away from the

metropolitan cities. But 3g internet and google maps have done a great job in covering this gap

but we still have a long path to go.

Build a strong and friendly relation with you costumers, this how you can do great

business in e-commerce. As Jeff Bezos said, “If you do build a great experience, costumers tell

each other about that. Word of mouth is very powerful”. People have a misunderstanding that

costumers get attached with product, services or platform, people get attach to people, so if you

have a strong and more friendly relation with your costumers then they going to strongly attach
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with you. A company can get familiar with their targeted audiences in many ways like: different

campaigns, advertisement, social media and print media too.

Always try to bring the best quality for your costumers. Well as we know that in most of

the online shopping people don’t get what they see online but that the major point you must

deliver the thing that costumer is seeing online on your website. That’s why people will always

come back to your website. There are many other problems like: vendors, logistics, payment

methods, technology and most of all trust.

As 40 million people in Pakistan use internet and number are growing rapidly, and

expected to grow up to 80 million in next 5 years. Still people are not so used to E-commerce. As

the main obstacle is the lack of education and awareness in rural areas. The other is shortage of

Electricity, high bandwidth rates and monopoly role of PTCL. As it is beneficial for buyers and

sellers and also a time saving procedure. It is beneficial for the government as well. And it’s the

responsibility of the government to fix these problems for their people. The need to aware the

people about use of e-banking even to the people of rural areas and also the use of debit and

credit cards, as their will be less use of cash and government will print less money and it will

drop down the inflation rate of the country. Secondly they should fix the power problem of the

countries, as big firms and banks have find a substitute as big power generators and some even to

solar power, but as small entrepreneurs can’t afford that, if government can’t meet the power

consumption of our country at least they should give supply to commercial areas for minimum of

8-10 working hours. And last but not the least there should be a perfect competition among the

Internet supplying companies, monopoly of the PTCL needs to get finished now, as PTCL is

allowing other companies to supply internet at higher rates which is not easily accessible and

affordable to every individual. Because if market will shift to the internet than there the supply
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and demand will grow and equilibrium can easily achieved, as in our neighboring countries E-

business is growing very fast and to match the pace of the world with developing countries we

need to develop our E-business market as it will Grow the GDP of our country. As Joel

Anderson, CEO of Wal-Mart once said

“I can’t overstate how mobile is changing how we interact with our consumers”

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