An Overview of eCommerce Market Trends, Services, and Online Payment in Pakistan

An Overview of eCommerce Market Trends, Services, and Online Payment in Pakistan
3 min read
14 November 2023

Pakistan's economy is still predominantly cash-based and informal. Except for significant purchases that require a bank draught or pay order, the majority of transactions are made with cash. According to some estimates, up to 60% of the economy is informal, with the bulk of local businesses, particularly SMEs, operating unauthorized and outside the tax net.

eCommerce Market Trends

The e-commerce industry has primarily focused on consumer goods and accessories. Online clients in Pakistan look for and buy consumer electronics, apply for jobs, get online education and counseling, sell/buy and gather information about autos, computers, finances, food and groceries, and a plethora of other items and services. Consumer decisions and the records they make generate a wealth of data that is used in targeted advertising.

Top eCommerce Sites in Pakistan

Some of the best eCommerce websites in Pakistan include:

Daraz

iShopping

ShopHive

HomeShopping

Telemart

Symbios

OLX

Best Buy Mall

For details click on the best online shopping sites in Pakistan.

eCommerce Services

Google Chrome is the most common browser, accounting for 56% of total visitors, with Microsoft Internet Explorer/Edge coming in second (21%). The remaining 23% of searches are conducted via Android, Safari, Opera, Opera Mini, UC Browser, Safari, and Maxthon, in that order.

Online Payment

According to statistics, 95 percent of e-commerce businesses accept cash-on-delivery for online orders. This increases the liquidity requirements for e-commerce enterprises and necessitates them to have dedicated teams who manage the company's cash receipts, and rising operating costs. The biggest e-commerce businesses have begun to accept digital payments, and they are optimistic that the sector will band together to persuade consumers to switch from cash-on-delivery to online payments. 

Digital payments are also a barrier to Pakistan's e-commerce business. While mobile banking products such as EasyPaisa, JazzCash, and uPaisa are available today, none of them have a large market penetration. This, combined with the fact that just 24% of the country's population has a bank account, raises the cost of doing business for e-commerce enterprises dramatically.

The State Bank of Pakistan (SBP) established the "Raast" indigenous digital payment gateway in 2021 to allow people, businesses, and the government to undertake financial transactions. This payment system was established with the goal of enabling small-value retail payments as well as providing cheap and universal access to all actors in the local financial industry's value chain.

Wrap-Up

Pakistan's economy is primarily cash-based, with 60% of transactions being informal. Consumer products and accessories are the primary emphasis of the e-commerce sector. Daraz, iShopping, ShopHive, HomeShopping, Telemart, Symbios, OLX, and Best Buy Mall are among the top eCommerce sites. Google Chrome is the most used browser, accounting for 21% of Android searches. Cash-on-delivery is accepted by 95% of e-commerce enterprises, raising liquidity requirements and operating costs.

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salma khan 2
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