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Pakistan’s eCommerce Market Growth

Sunday, May 6, 2018

Last year has resulted in exponential growth of the ecommerce industry in Pakistan. We have witnessed  strong movement in the sector in terms of overall sales and customer acquisitions. Traditional industries have also started to benefit from this trend and have begun to move towards partnering with online stores to increase their revenues. This growth is coming in due to some exciting partnerships taking place, however a lot remains to be fixed as well if we are to hit $1 Billion in ecommerce revenue by 2020.

The online retail market is growing immensely on an annual basis.  Ecommerce companies post growth of as much as 300% per year and these growth numbers are apparent across the rest of the industry as well.

With growth accelerating across all sectors and estimated to reach $1 Billion in revenue in 2020, ensuring positive customer experiences is the minimum requirement. In fact ecommerce should promise its customers an above average shopping experience that surpasses all their expectations, this is the only way ecommerce sales can start becoming a bigger chunk of retail sales.

To do this we have to realise the right levers that are necessary to enable great customer service. While a customer will directly interact with 1 Website, that website is reliant on multiple industries and players to ensure they deliver a seamless experience.

  • Vendors – without vendors the ecommerce industry would not have any products to display. Vendors are crucial to marketplaces in particular where any delay in receiving the product can ruin the customer experience.
  • Logistics: Once the product is procured having the right delivery partner is crucial. Factors such as service quality and cost are both equally important as well as providing live tracking data and support.
  • Payments: Whether the payments is handled by the logistics players through COD – or by Credit Card merchants how easy and accessible the payment method is crucial for both the customer and the ecommerce player. The ecommerce player needs to ensure he receives his payment on time otherwise can suffer greatly from lack of working capital.
  • Technology: The backbone of the ecommerce site, technology whether its just the web store, the seller centre, the warehouse management system or the customer support system. Without the right technology no ecommerce company can succeed. Whether the technology is custom developed or bought is irrelevant, however its requirement and proper usage is crucial to succeed.
  • Trust: Only when all of these elements are working properly will the customer end up getting a good experience and therefore start to build trust in the overall sector. This will result in higher repurchase rates and therefore retention which itself will then drive further acquisitions of new customers.
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