Unlocking E-commerce Growth in Pakistan's Evolving Market
In contrast to the global e-commerce landscape, Pakistan's market share is still relatively small, providing significant room for growth. This opinion piece aims to discuss the challenges facing the e-commerce industry and offers ways to overcome them.
Consumer trust in the country is a major challenge for the e-commerce sector. Online shopping is a new idea, and because of possible fraud and scams, buyers are wary.
According to a Pakistan Telecommunication Authority survey, more than 60% of Pakistanis are unconfident when making payments online, which is impeding the growth of the sector. To gain their customers' trust, e-commerce stores in Pakistan should implement safe payment methods, openly reveal product and service details, and offer dependable customer service.
Limited access to digital infrastructure and technology in Pakistan's rural areas is another issue. Due to restrictions on internet and mobile networks, it is difficult for businesses to engage with potential customers. Poor network quality can result in slow page loading and a bad user experience, even in urban areas.
Pakistan's government should make investments in digital infrastructure to address this, enhancing the availability and quality of the network. E-commerce businesses could assist by setting up physical locations in rural areas and providing offline payment options.
The third issue facing the e-commerce sector is ineffective and unreliable logistics. Delivery delays are frequently brought on by clogged roads, shoddy courier services, and traffic congestion, which irritates customers and impedes the expansion of e-commerce.
Companies can work together with reputable logistics firms to guarantee prompt product delivery. By making investments in road infrastructure and putting policies in place that encourage the expansion of the logistics sector, the government can enhance the logistics system.
In the midst of the challenges, the public in Pakistan is not digitally literate, according to a UNDP report.
Only thirty-five percent of Pakistanis have basic digital skills, which prevents them from engaging in e-commerce. In order to overcome this challenge, online retailers can offer educational programs to improve the level of digital literacy among their customers. Likewise, to increase the population's level of digital literacy, the government can fund educational and training initiatives.
Orderless online trade offers enormous opportunities for Pakistani business industries that serve the large Pakistani diaspora living in the US, Canada, the UK, and the Middle East. However, to take advantage of this opportunity, Pakistani companies need to ensure that their goods and services meet quality standards and that they offer trustworthy delivery services.
E-commerce needs regulatory support to succeed in the face of obstacles. Policies that lack clarity impede progress and create uncertainty. Pakistan's government can set clear regulations and policies, providing tax breaks, streamlined processes, and assistance to small and medium-sized enterprises, in order to promote the expansion of e-commerce.
Considering that 58.4% of internet users make weekly purchases online, optimizing the mobile user experience in e-commerce can greatly increase its scalability. Social media platforms are another powerful tool for e-commerce promotion; local businesses in Pakistan make extensive use of channels like Facebook to support their business.
Social media channels have a staggering 49.2 million users in the nation, making them an excellent tool for product and service marketing.