SCOPE OF E-COMMERCE

IN PAKISTAN
REPORT PRESENTATION
MUHAMMAD SAEED
WASIF SHEHZAD
HASEEB JAVED
FAIZAN LIAQAT
INTRODUCTION

 Pakistan is still largely a cash-based, informal economy. The majority of transactions are
conducted in cash, except for those that are very large and require a bank draft or pay
order.
 Several local companies now use social media to promote their products and services.
 E-Commerce is very important issue now days because it is the Era of Information
Technology. In these days IT can play an important role in the development of economies
of the world.
 E-Commerce related to the delivery of information, product or payment via telephone lines,
network or any other means. E- Commerce directly relates to online business, services and
many more.

 Those Companies who wants to start business via internet then they should prepare their
own web sites, containing all the information about their organization.

 Pakistan has the capability to move into the Era of electronic trade. Due to the use of
Internet more and more countries are involved in E-Business. Doing business via internet is
easy task and billions of people can be connected at same time.

 The over-all volume of e-commerce is more than $4 billion annually.

 Pakistan is still far behind in chasing the west in this regard.

HOW BIG IS THE SIZE OF PAKISTAN’S E-
COMMERCE MARKET CURRENTLY?

 “The local e-commerce market stands at almost $100 million,” said Badar Khushnood,
Co-Founder, Brammerz – a digital media agency

 “The target is not far-fetched. With growth this steady, it can be achieved even before the
given time,” says Zain Ali Sheikh, Country Manager of Kaymu.pk

 “Different cities in Pakistan are showing interesting e-commerce trends,” said a former
spokesperson for Uber.
 EMERGING TRENDS

According to one estimate

 “9 per cent of the country’s population went
online during last year”
 “30 per cent are likely to get connected to
Internet in next three to five years”
Roughly 30 million Internet users are focusing of entrepreneurs in Pakistan.
 Total volume of online sales was around $35 million last year.
Because of the lack of awareness
 Online transactions as a risky activity
 Strongly believe in physical dealing
PROGRESS ON E-COMMERCE IN PAKISTAN

 Now almost 4,000 bank branches are computerized

 In December 2005, the Central Board of Revenue , the tax authority, started online tax
facilities including online tax returns.
 The Information Technology and Telecommunications Division was established in July
2000
 The National Information Technology Policy was launched by the Ministry of Science and
Technology in August 2000.
 Various e-commerce projects and programs were started in both public and private
sectors in August 2006.
 The government had planned new IT and e-commerce projects worth well over PKR
4.5bn up to 2007.
 The government further aimed to produce 100,000 graduates a year in IT
DOMESTIC ACTIVITY

• Domestic activity allows our and entrepreneur to test their web business marketing skills
before taking on the international markets.
• At the individual level, it is purely a business matter. At the Govt. level, it is a matter of
providing infrastructure for transactions on internet.
• E-commerce is a broad term used to quantify the trading taking place on the internet.
E-COMMERCE RUNS THROUGH FOLLOWING STEPS

• Build a website to let the world know about your existence.

• The second step involves asking customers to lose their pockets and buy
on line.
• The third stage inventory, management adds to the system and lastly,
providing provisions of payments through online banking partnership
between buyers and sellers, the most difficult and complex part of e-
commerce.
CURRENT MARKET
TRENDS
THE E-COMMERCE SECTOR HAS FOCUSED MAINLY ON CONSUMER
PRODUCTS.
MARKET TRENDS

• Consumer Electronics, Laptops and Notebooks

• Mobile Phones,
• Employment Queries
• Online Education and Counseling,
• Sale/Purchase and Information Gathering about Vehicles
• Test Preparation and Tutoring
 E-COMMERCE SERVICES

• Internet browsers usage in Pakistan

Chrome
56%

Internet Explorer Other

21% 23%
LEADING ECOMMERCE WEBSITES IN PAKISTAN

• ● OLX
• ● Daraz
• ● Pak Wheels
• ● Zameen
• ● Kaymu
• ● Shophive
• ● Homeshopping, and other clothing websites
SOCIAL MEDIA
MOBILE E-COMMERCE

• Introduction of 3g/4g in Pakistan

• Total internet subscribers in Pakistan 44.6 million. (2016)
• Internet subscribers growth per year is averaging over 22 percent.
• Low cost of 3g and 4g, Low cost mobile phones have increased the use of mobile phones
for ecommerce.
• New startup businesses claim that 75% of their business is online.
MAJOR BUYING HOLIDAYS IN PAKKISTAN

• Eid-ul-Fitr
• Eid-ul-Adha
• Black Friday
• New Year
• Wedding Season (October through April)
ONLINE PAYMENTS

• Global
• Credit Card (One Million)
• Debit Card (27 Million )
 Domestic
 Easy Paisa
 Jazz Cash
 U Paisa
 Easy Pay
CASH ON DELIVERY

Being a cash-based economy, Pakistan’s e-commerce industry structurally differs from

developed countries.
“About 97 percent of our economic transactions are cash-on-delivery”
Experts Opinion
“There are about 5,000 online shops with only 50 of them having integrated methods of
online payment currently.”
THE DARK SIDE OF E-COMMERCE IN PAKISTAN

 CUSTOMERS THINK THAT LOW-QUALITY PRODUCTS ARE BEING SOLD

“Successful e-commerce store is highly dependent on product quality.”
“Many customers would easily ignore products just by reading their country of origin”
Which can have a negative impact on sales.
 HIGH PRICES ARE BEING CHARGED
Customers searches multiple websites before making purchases.
In online shopping, different e-commerce stores stock the same products for different prices.
But customers always want to purchase reasonably priced items.
 THEY DON’T GET THE BEST CUSTOMER SERVICE
Customer service remains the most important aspect for the success of e-commerce.
Product return policy
 COUSTMERS ARE STILL NOT COMFORTABLE WITH PAYMENT METHODS
Customers are still afraid to use online payment as a mode of transaction.
Over 72% of Internet users in the US are digital shoppers
Only 3% of Pakistani Internet users have purchased items online
 THEY’RE AFRAID OF COUNTERFEIT PRODUCTS
Counterfeit consumer goods are goods, often of inferior quality, made or sold under
another's brand name without the brand owner’s authorization. Sellers of such goods may
infringe on either the trademark, patent or copyright of the brand owner by passing off its
goods as made by the brand owner.
SUGGESTIONS

 Interaction
 Community
 Price sensitivity
 Brand image
 Commitment
 Partnership
 Process improvement
LEGAL BARRIERS

 Absence of policy framework and limited internet market

 Protection of the Public Interest

CONCLUSION