Recent years have seen a significant increase in internet penetration in Pakistani communities compared to neighbpocoloco.rsoring countries like India and China. There are few countries in the world that are as underdeveloped as Pakistan. It is an enviable achievement for Pakistan to have expanded online shopping so quickly.
Numerous factors have directly contributed to this impressive growth. Taking a look at shopon.pk what makes the e-commerce sector in Pakistan grow, we can see that there are several factors directly contributing to its growth.
Usage of the Internet and Demographics
Over the past decade, Pakistan has seen an increase in Internet usage. People who doubt this need only look at the number of Internet users who have increased over the past 12 years. Internet world stats show that the users of the Internet increased from meager 133,900 in 2000 to nearly 18 million.
User numbers have increased exponentially for the past 15 years, from 0.1% in 2000 to 10.4% in 2010. In any case, increasing Internet penetration by 100 times is no small feat.
The Demographics are as Follows
E-commerce activities have always been influenced heavily by demographics. Online shopping has grown rapidly in Pakistan because of the increase in teen shoppers. The number of children in Pakistan aged 0-14 is estimated at 35.4% in 2011 according to the UN. The Pakistani population as of 2011 is 60.3% between the ages of 15 and 64.
Despite this, there are many young people in Pakistan who make up 60% of the country’s population. The younger generation is more likely to adopt new technologies than the older generation. As a result, the transition to new technologies is easier since there are no steep learning curves. Another reason why online shopping can thrive in Pakistan is the young population.
Changing Business Models
Internet usage has changed tremendously over the years. Since 2000, when the Internet started to flourish, Pakistan has not been able to establish an effective online payment system due to terrorism. While e-commerce has become a part of Pakistani society, the diversity of success stories has helped to devise new models to handle internet payments that have helped pave the way for online payments in Pakistan.
Pay-on-delivery has proved to be a successful business model. This business model has become the preferred method of purchasing tech gadgets, dietary supplements, and other necessities. The fact that many websites offer products and pay for shipping has helped them build trust among customers.
Banking on your Mobile Device
The telecommunications industry has been instrumental in popularizing mobile banking. In Pakistan, products as diverse as Easy Paisa, UBL Omni, and Time Pay are already available on mobile phones. The company has been able to penetrate the market while still offering better prices than more sophisticated and customizable online payment solutions like Visa, Master, and PayPal.
Using Online Banking
Increasingly, people are doing their banking online. Payments online can already be easily transferred with banks such as HSBC and Standard Chartered. Online transactions provided a secure environment to reduce the chances of embezzlement or fraud. Many technologies have either succeeded or failed because of the cost of production.
Transaction costs are another important factor that will contribute to the growth of online shopping in Pakistan. A number of companies reduce their transaction costs by offering their customers an online payment option. Additionally, the company will strive to improve the quality of service as it does with its competitors.
Payments via the Internet are Accessible
It’s wonderful when a cash on delivery (COD) option is available when shopping online. The majority of users view it as a leap of faith and are quite happy to pay in cash once the item has been delivered. There are also other online payment options available in the trendy banking sector.
As reputable online brands grow, online consumers are starting to share their credit card information to make online purchases. This has been a major breakthrough in the history of Pakistan’s IT industry.
Mature Courier and Logistics Infrastructure
It was the same phenomenon that entrepreneurs faced in Silicon Valley in the early 90s. The IT industry suffered a lot in its infancy even in Pakistan because there was no basic infrastructure to deliver goods to the doorstep of consumers. Prior to the fact that delivery can be a big issue, it has become quite difficult for online consumers to trust their money to cloud stores.
It was the first time in Pakistani history that we saw no positive change in the attitudes of online consumers towards e-commerce to leverage mainstream media outlets. People watching ads on reputable TV channels thought it would give them a chance and it worked.
Consumer Education
With the growing trend of e-commerce stores in mind, the Pakistani government recently passed a law requiring all universities to teach young people the importance of e-commerce.
Finally, I remember a time when sending money to someone meant at least 2-3 hours of spare work related to deposits, account numbers, and other document obligations. However, modern online payments have solved all the problems of having to present a national ID to transfer money anywhere in the country.
Barriers
In addition to all the achievements, there are still dozens of barriers that Pakistani e-commerce industry has to deal with.
- The government’s discouragement policy.
- Low literacy rates.
- Misconceptions about Pakistan’s e-commerce industry.
In addition to all the achievements, there are still dozens of barriers that Pakistani e-commerce industry has to deal with.
- The government’s discouragement policy.
- Low literacy rates.
- Misconceptions about Pakistan’s e-commerce industry.
Conclusion
It is not wrong to say that Pakistan’s IT industry joined the party quite late. Nevertheless, in recent years, it has attracted the attention of IT professionals who are enjoying a booming citizenry. Regardless of the time, brands such as Shopon, iShopping, Kaymu and daraz have developed attractive value for online consumers.
All of these efforts by major e-commerce brands ultimately incentivized online users to buy things. Offering many facilities, these brands have become Pakistan’s main economic stabilizers. All in all, it was a matter of educating online consumers in Pakistan.
