The fact that 35 per cent of the total 70,000 COD parcels are delivered to cities other than the urban cities of Karachi, Lahore, and Islamabad, depicts the potential of the vast untapped segment of the population outside of these urban centres that is increasingly transitioning to online shopping due to the lack of options available for rural shoppers.
This has also encouraged many specialised online grocery stores to recently pop up and tap into the need for specialized online stores, such as Aaram Shop, Pakistan Grocery and
This man bought for one minute Pakistan, although a late entrant to the world of e-commerce, has recently recorded a massive rise in online shopping trends and other e-commerce businesses.
Such exponential growth trends over the past few years – with US$30 million being spent on online purchases currently – depict a highly positive picture for the future and the size of Pakistan’s e-commerce market is expected to reach over US$600 million by 2017.
These trends provide ample growth opportunities for emerging online business, as well as potential exploration and growth avenues for courier services by association.
Growing trust and reliance on e-commerce The future of ecommerce trends lay in the ability of online business to gain their foothold and establish trust in online shopping and e-commerce initiatives. With just 3 per cent of the Pakistani population indulging in online shopping, several initiatives are starting with online businesses in Pakistan to reach out to their potential market, build up their credibility, and garner consumer trust. Facebook i OS app is tracking your every move: report Online brands such as OLX have now begun to set up significant advertising budgets for mainstream media advertising, as well as targeted digital marketing initiatives through social media.With many new online ventures springing up rapidly and existing businesses recording unprecedented growth rates, there is still a lot that needs to be done to reach the true e-commerce potential of the country and compete with other big players of the region.Several factors are responsible for drastically changing shopping trends over time and driving the growth of e-commerce in Pakistan.Pakistani researchers develop solar-powered mobile phone network All these businesses have emerged in spite of all the barriers such as misconception and mistrust of e-commerce in Pakistan, security concerns regarding online transactions, low access to technology, low literacy rates, and limited infrastructure and logistical support.All in all, this goes to show that the market and timing is ripe for e-commerce in Pakistan – irrespective of a few hiccups – and the industry is all geared up to create massive waves in the country, with colossal scope for innovation and improvement as well as exponential long-term growth.Pakistan’s new e-commerce horizons Many visionary local players such as Shophive, Homeshopping, ROZEE, Just4girls.pk, and Pakwheels, as well as giant foreign investors such as Rocket Internet with their diverse online initiatives such as Jovago, Tripda, and Foodpanda, are all swooping in to establish their market share in the emerging e-commerce industry of Pakistan, within their respective domains.Various other local and home operated business have also flourished through Facebook pages as a result of rapid penetration of the internet and smartphones, COD and IBFT services and the overall growing trends of online shopping.With such easy access to the internet via affordable smartphones, e-commerce trends in the country are expected to boom in the near future.Online modes of payment Even though Cash-on-Delivery (COD) payment methods continue to remain widely popular in Pakistan and account for more than 95 per cent of online purchases, other promising initiatives such as branchless banking (Telenor’s Easy Paisa, Zong and Askari Bank’s Timepey, Mobilink’s Mobicash etc.) and Inter Bank Fund Transfer (IBFT), are also underway.One of the most important factors in the equation is the rate of internet penetration in Pakistan.Pakistan’s internet enabled population is limited to around 30 million users today.