Online shopping is tipped to take off in Pakistan.
While Pakistan has yet to realise its full potential in the field of online shopping, its current statistics are reason for optimism, says online shopping website One Roof Pakistan.
With the country now boasting 31 million internet users, a number of startups in the field of e-commerce have emerged. Fifty per cent of those online use mobiles for browsing making them the fifth largest base of mobile phone users in Asia, according to Pakistan Telecom Authority. This is such an opportunity for a country like Pakistan to have growth in the online retail industry.
Due to no barriers to international trade, US-based online commerce giants like Amazon, Macy’s, and JC Penny are allowed to ship items to Pakistan. Delivery of online orders is made possible via Borderfree. Online consumers experience a hassle-free online shopping as they can pay using their local currency via online banking or cash on delivery.
Online payment options such as credit and debit cards have yet to be developed in Pakistan as there is only one bank, United Bank, which facilitates online payments.
Online stores dedicated to selling products to international buyers generally choose third-party gateways like 2CheckOut, Payza and Skrill for overseas sales. For domestic sales, choices include online bank transfer, branchless banking like mobile network accepting payments on behalf of banks, mostly from consumers without bank accounts and mobile transfer.
Although no major cases of fraudulent activity have emerged in internet retailing since online shopping was introduced in Pakistan in 1997, there is still a need to build the confidence in online shopping and financial security in this country, it says.
There is but a great opportunity to improve the online retail industry in Pakistan with it being a consumer economy as compared to its neighbouring countries which are dependent on manufacturing, tourism and other traditional economic industries.
Based on State Bank of Pakistan data, there is a large percentage of the country’s gross domestic product being spent on consumption which makes consumer retail a growing sector in the country. Pakistan imports $40 billion worth of goods yearly while exporting only $24.6 billion making up the differences from remittances from Pakistanis living abroad of $13.2 billion yearly. The mean percentage of Pakistani consumers likely purchase goods and services, construct housing, etc.
Wholesale and retail sectors account for 17.1 per cent of Pakistan’s economy.
