“An E-Commerce Platform could be a Promising Business; if it is conducted out with true spirit” – Mark Wise
E-Commerce sector in Pakistan is on the rise in recent past years, and because of that reason you might have witnessed various online shopping platforms working online. In major cities of Pakistan, E-commerce websites are the main source for customers to buy their favorite products. Users just select their favorite product online and pay the required amount through credit card or payment on delivery mechanism. As compared to other international markets, E-Commerce markets in Pakistan is currently in development stage. It’s not as developed as the E-commerce markets in USA, Australia, Canada and India.
Most of the E-commerce platforms in Pakistan are Multi-vendor. In a multi-vendor e-Commerce business, every seller has their own independent separate shop. Online shopping is now the growing trend, and millions of Internet users love to buy their favorite products online through a Multi-Vendor e-Commerce platform. On Multi-vendor platforms, sellers can easily upload and sell their product, and assign certain prices to each category of the product by keeping the margin in prices to make profits. The best example of multi-vendor business in Pakistan is Daraz.
Comparing Pakistan’s E-Commerce Market with Successful Economies
Likewise the other growing online economies of the world, Pakistanis still don’t much rely on the E-Commerce platforms. It’s because of various reasons, which comes together to influence on the minds of customer while they decides to purchase a product online. Setting up an E-Commerce website is not a difficult task to perform. The only thing is that you have to be consistent with your approach of posting quality products with true descriptions. On the other hand, Government didn’t have a comprehensive policy to streamline the business of E-Commerce in Pakistan. They don’t have a single department that address the issues faced by the E-Commerce owners as well as E-Commerce users.
Factors Affecting the E-Commerce Growth in Pakistan
Product Fraud and Misrepresentation
The major issue of Pakistan’s E-Commerce platforms is basically related with the product fraud and its misrepresentation. It’s a major flaw, which plays with the emotions of online customers in Pakistan. If somehow they purchase a product online and it didn’t receive as the order was placed, then they decide never to avail the facility again. They prefer to go physically and buy desired product instead of getting wrong products again and again.
No Relevancy in Prices
Product Prices quoted on the different online E-Commerce platforms in Pakistan are not accurate and don’t relate with the actual market prices. There is also a lot of difference between the actual prices of product shown on different E-commerce platform working in the same city. This factor increase the lack of trust, so eventually customer turned down this site.
False Discounts Promotion
Pakistan’s E-Commerce Industry still lacks the deep true discounts on online products and services. First they increase the price of the products and then put a nominal discount on it which finally equals the same amount of the original price. E-Commerce platforms are only used by the educated online customers, so when they see a false discount ad they don’t give a value to it.
Lack of Offering Original Product
Pakistan’s Ecommerce market lacks in offering the original non branded items that impact the quality services of the E-Commerce platform. Like the other global giants, Ecommerce industry don’t deliver the value to the online customers. They pay more and get less efficient products in Pakistan. This feature impacts the encouragement factor and makes online sale process less productive.
Urban and Upper Class Centric
Most of E-Commerce platforms in Pakistan basically address the needs of upper class and upper middle class. It’s a very low chunk of the total buyers in Pakistan. E-Commerce platforms don’t address that issue in proper manner and instead of that they keep on working with the old school model strategy, which eventually reduce their brand value.
Payment Issues and Delivery Failure
E-Commerce shopping stores in Pakistan charge a heavy amount for the delivery services they offer to their customers. At times the delivery charges becomes equal the amount of the actual product they buy. Most of the online users in Pakistan belongs to middle class and lower middle class. When the find out the prices charges of the delivery, they decide to buy the product by visiting physically. Pakistan’s E-Commerce platforms also shows failure in delivering the product or services on time. They don’t have the habit of it as it becomes their weak link.