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LAHORE: The arrival of e -commerce offers an important opportunity for small and medium -sized businesses (SMEs), which is an integral part of Pakistan’s economy, which includes more than 90 % of all businesses and the country. About 40 % of KGDP accounts.
Through e -commerce, businesses can increase their access, reduce operational costs and increase overall performance. It enables SMEs to control geographical boundaries, which provides access to both national and international markets. This is a benefit that is especially in a country where traditional retail infrastructure is limited.
By adopting an online platform, SMEs can reduce the cost of physical store fronts and batch, which can improve smooth operation and profit margin. The digital platform also facilitates direct consumer communications, which allows personal marketing and more responsive services.
Traditionally, the offline business has difficulty connecting with e -commerce. SMEs, especially in rural areas, struggle with limited digital literacy and inadequate technical infrastructure, which hinders their ability to effectively engage in online trade. The absence of a comprehensive regulatory framework and limited access to digital payment solutions leads to further obstacles. For example, the absence of a global payment system like PayPal in Pakistan limits smooth financial transactions for SMEs.
Consumer confidence building in online transactions remains a challenge, which has concerns about data security and fraud, preventing both businesses and users from accepting e -commerce fully.
The government has to implement targeted strategies to facilitate the adoption of e -commerce. Investing in digital literacy programs and providing training for SME owners and employees can help eliminate the difference between knowledge, which can enable effective use of online platforms.
Increasing the Internet access and reliable, especially in the areas, is very important to adopt e -commerce extensively. Developing clear and supportive e -commerce policies, including the convenience of the digital payment system, can create an an atmosphere of SMEs to flourish online.
Although e -commerce offers benefits for Pakistani SMEs, the current challenges need to be tackled through the concrete efforts of both public and private sectors to understand its full potential.
By 2022, Pakistan’s online retail market value was approximately $ 9 billion, of which the electrical and electronics retail segment is $ 1.9 billion, or 48.9 % of the total value of the sector.
Although specific figures about the total retail sales of online in Pakistan are limited, the sector is significantly growth. Estimates show that by 2025, market volume can reach $ 9.15 billion to $ 9.15 billion between 2022 and 2025.
Digital payments and online retail sales must be distinguished. Recent reports show that during the third quarter of the financial year 2023-24, digital transactions in Pakistan had 83 % of the total retail payments. However, the figures include all types of digital payments, including digital sources, rather than representing online retail sales in stores in the store.
Although Pakistan’s e -commerce sector is spreading, its online retail penetration is still developing and may not be compatible with the global average. The pace of development suggests a positive trend, but more comprehensive data is needed to accurately evaluate online sales shares within Pakistan’s total retail landscape.
The online sales in Pakistan began in the early 2000s, but due to low penetration and limited digital payment options in the Internet, the sector was relatively small. Some of the early e -commerce platforms were websites.
The original online shopping growth in Pakistan began with the launch of a platform like Draz (2012) around 2012-2014. The rise of cash on Delivery (COD) as a priority payment method played an important role in expanding e -commerce. By the mid -2010’s, increasing mobile Internet access and introducing digital payment solutions increased online sales.
