Pakistan is the 51st largest eCommerce market, with US$2,851.6 million in revenue by 2024, ahead of Nigeria. The Pakistani eCommerce market is anticipated to expand 14.6% in 2024, contributing to the global growth rate of 10.4%. Global eCommerce sales are likely to rise in the coming years, like in Pakistan. [Source]
Based on these figures, what are your thoughts on starting an ecommerce business in Pakistan?
It appears that ecommerce business in Pakistan has a bright future ahead of it. But many people still have no idea how to benefit from an ecommerce business. The bright side is that a lot of people are interested. So, first, we’ll define e-commerce, and then we’ll look at its potential in Pakistan.
What is ECommerce?
Ever notice how people talk about “do a dropshipping” or “start a profitable online store” on social media? They’re really talking about setting up an ecommerce business.
So, basically, the word “ecommerce” describes the practice of selling goods and services through the internet. They are accessible around the clock and can reach customers all around the world. This means that everything from choosing a product to paying for it and receiving it is done online.
Read Also: Startup Cost In Business | Initial Business Setup Cost
What are the models of ecommerce businesses?
There are many models of ecommerce businesses you can choose according to trends and your passion. Consider your budget as well when choosing the business model.
1-Business-to-Consumer (B2C)
This model lets your company sell goods or services straight to individual customers.
An online marketplace such as Daraz.pk is a prime example.
2-Business-to-Business (B2B)
Here, you deal with other businesses by selling them your products and services.
Marketplaces for wholesale goods and services and companies offering software as a service (SaaS) to businesses are two examples.
3-Consumer-to-Consumer (C2C)
In this model, e-commerce platforms enable consumers to purchase and sell goods and services directly to one another online.
Marketplaces on social media platforms, such as Facebook, Craigslist, and eBay, allow users to post goods for sale to other users.
4-Consumer-to-Business (C2B)
Consumers engage in B2B e-commerce when they sell goods and services directly to other companies. For example, Upwork and Fiverr.
Sites like Upwork and Fiverr, which connect freelancers with clients, are examples.
5-Dropshipping
Selling things to clients without maintaining inventory is known as dropshipping. This e-commerce business model often outsources the products or services to third-party suppliers rather than handling the fulfillment of consumer orders in-house.
With this model, the retailer may keep fulfillment and inventory management expenses to a minimum.
6-White Labeling
One business may engage in white labeling if it resells goods and services made by another business under their own name.
White labeling allows e-commerce businesses in Pakistan to expand their product and service offerings without investing in in-house production or development.
What are the key components you should consider when doing an ecommerce business in Pakistan?
The components of an ecommerce business are uncountable. But there are some that are musts for every ecommerce business in Pakistan. Let’s throw a light on them.
1-You must have an online Storefront
View this as a virtual shop instead. Your website is the first impression clients will get of your business, so it should be attractive, simple to use, and compatible with mobile devices.
2-Comprehensive product listings
Here, you can display the products or services you are offering for sale. To help buyers make educated selections, every product listing needs to include excellent pictures, comprehensive descriptions, and price details.
3-Safe Methods of Making Payments
It is critical to provide safe online payment options to your consumers in Pakistan. To make sure all transactions go smoothly and securely, you must integrate trustworthy payment gateways like JazzCash, EasyPaisa, or Bank Alfalah.
4-Order Management Systems
For fast order processing, inventory management, and client request handling, you’ll need a system. This guarantees that your orders will be fulfilled promptly and helps you optimize your operations.
5-Shipping and Logistics Solutions
Customers must receive their orders promptly. For trouble-free delivery and satisfied clients, team up with dependable logistics companies and courier services.
6-Customer Support Channels
Building trust and loyalty requires providing outstanding customer service. Make yourself available to customers through a variety of means (e.g., live chat, email, phone, social media platforms) and reply quickly to their questions and concerns.
7-ecommerce business marketing plans
Your online store needs digital marketing if you want to draw in customers. Some examples of such strategies are influencer collaborations, email marketing, social media marketing, search engine optimization (SEO), and social media marketing.
There are a lot of areas to see in order to start an e-commerce business in Pakistan. It’s always best to hire an e-commerce business consultant who can guide you through every step, from the first to the last, to step up your e-commerce business successfully.
Learn from failures: Why ecommerce businesses fail in Pakistan?
All of the above are only blueprints of e-commerce business models and how to implement them. In reality, though, your knowledge and skills will dictate the niche you target, the model you choose, and the approach you take. According to a study, the majority of Pakistani e-commerce businesses fail during their first few years due to a lack of experience.
There are a lot of other factors that contribute to failure, such as insufficient marketing, inadequate research, trust issues, restricted payment alternatives, an inability to adapt, and so on. Why risk losing money on an unsuccessful e-commerce venture when you can just employ an ecommerce expert?
Keep in mind that there is no shortcut to succeeding in business. Searching for it like everyone else will get you nowhere. Remember this: It’s a long road ahead.
No Better Time Than Now to Launch Your Business!
Starting your online store is still a huge step, even though everyone can do it. One big advantage for e-commerce businesses in Pakistan is how easy it is to start and run an online store. No matter how fierce the rivalry gets, the e-commerce sector is only just starting to take off. So, begin right away, but don’t forget to reach out to an ecommerce business consultant for advice. Because you can rely on his expertise to steer you away from pitfalls and toward success.
