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E-COMMERCE:

THE GATEWAY TO
PROSPEROUS
EXPORTS FOR
PAKISTAN
NAVIGATING GLOBAL MARKETS FOR
SUSTAINABLE GROWTH
Pakistan’s Export

Pakistan exports for 2022 was $39.59 billion, a 25% increase from 2021.

$31.3 billion for the goods export.

$7 billion for the services export.


Pakistan's Key Export
Industries

Textiles Shoes and Leather Sports Goods Toys


Goods
Pakistan is the world's 4th Leather product exports Pakistan's sports goods Exports of toys and games
largest cotton producer, with reached $2.2 billion in 2022. exports totaled $404 million in were valued at $237 million in
textile exports valued at $19.3 2022 2022
billion in 2022
E-commerce in Pakistan
Pakistan is the 46th largest market for E-Commerce

Predicted revenue of US$5.6 billion by 2023.

By 2021, the market had hit $4.2 billion.

Revenue is expected to show annual growth rate of


5.9%, resulting in a projected market volume of $7
billion by 2027.
Top E-Commerce Sellers in Pakistan

US$37.5m
junaidjamshed.com
US$85.3m

US$35.9m
glahmedshop.com
US$53.1m

US$34.2m
limelight.pk
US$53.1m

US$29.4m
dvago.pk
US$29.4m

US$28.1m
sapphireonline.pk
US$44.7m

0 25 50 75 100

Filtered Revenue/Local Global Revenue


The Global e-commerce Landscape

In 2022, global e-commerce sales were $5.7 trillion,

up from $5.2 trillion in 2021.

In 2023, Global sales are estimated to be $6.3 trillion.

By 2026 it will be $8.1 trillion with remarkable

growth over 56% from 2021.


The Global e-commerce Landscape

Ecommerce’s growth rate worldwide is expected at 9.4% in 2024

In 2027, global ecommerce sales growth is expected at 7.6% as

overall sales surpass $8 trillion for the very first time.

In 2023, total retail sales worldwide is expected to rise to $29.7

trillion, marking an increase of 5.5% from 2022.

This is 3.4 percentage points lower than the global ecommerce

sales growth rate.


Retail E-Commerce sales worldwide from 2014 to 2026

10,000

8,148
7,500
7,528
6,913
6,310
5,717
5,000 5,211

4,248

3,351
2,500 2,982
2,382
1,845
1,548
1,336

0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Top E-Commerce Sales Countries

USA US$1163.49B

UK US$195.97B

Japan US$193.42B

South Korea US$147.43B

India US$118.9B

Germany US$97.32B

Indonesia US$97.14B

Canada US$82.81B

France US$79.36B

Australia US$32.3B

UAE US$10.2B

KSA US$10.1B

0 250 500 750 1,000 1,250


E-Commerce sales growth by region
60

50% 52%
47%
40

20

15%

0
United States Europe China Rest of the world
Top Categories by Sales

Fashion e-commerce market is $1.1 trillion.

Consumer Electronics market is $1 trillion.

Toys, Hobby e-commerce market is $0.7 trillion.


Benefits of Embracing e-commerce for
Manufacturers and Exporters

E-commerce has become a strategic imperative for


manufacturers and exporters in Pakistan, offering
advantages that can significantly impact business
growth and sustainability
Access to a Global Customer Base

Unparalleled Market Reach


E-commerce transcends geographical boundaries, enabling Pakistani exporters to tap into a global
customer base. This means access to millions of potential customers from diverse regions and markets.
In 2022, Only amazon.com got 5.6 billion direct visits to it’s website

Market Diversification:
Expanding beyond domestic markets mitigates the risks associated with reliance on a single market. By
diversifying their customer base, exporters can reduce exposure to economic downturns in specific regions.

Targeted Marketing:
E-commerce platforms provide tools for targeted marketing and customer segmentation. Exporters can
tailor their marketing efforts to specific demographics, preferences, and purchasing behaviors, increasing
the chances of successful sales.
Enhanced Market Reach and
Competitiveness

24/7 Improved Customer Agility and


Availability Visibility Reviews and Trust Adaptability
An online presence ensures E-commerce platforms offer Positive customer reviews and E-commerce allows for quick
that potential customers can opportunities for search ratings can build trust and adjustments to product
access your products and engine optimization (SEO) and credibility, which are crucial offerings, pricing strategies,
services around the clock, online advertising, boosting for brand reputation and and marketing campaigns,
regardless of time zones or visibility and attracting competitiveness. enabling exporters to respond
holidays. organic traffic. promptly to market changes
and trends.
Value Addition
through e-commerce
Branding and Premium Pricing

Value Addition

Value Addition = Retail price - cost price


Profit Margin = Retail - (product cost + platform fee + shipping charges+ storage
fee)

Profit % Example
Profit margin = 30$ - (4$+10$+2$+0.05$)
= 30$-16$
Profit = 13.95$
Profit %age = 46.5%

Nielsen reports that 59% of consumers are willing to pay more for products
from brands they trust.
Key E-Commerce Platform

Amazon
Amazon is one of the largest and most popular e-commerce platform in the world.
Amazon Global GMV - $ 693+ Billion
Amazon USA Sales – $ 500+ Billion
Amazon UK Sales - $ 36+ Billion
Amazon Germany Sales - $ 40+ Billion
Amazon Australia Sales - $2.6+ Billion
Pakistan’s Top Brands on Amazon

Major exports of Pakistan that contribute to amazon include textiles, leather and sports goods.

Amazon number 1 seller is from Pakistan, that Generates $650 million revenue in 2022.

Within 3 to 5 years there export will potentially exceed 3 Billion dollar.

Another Pakistani Brand Generates $100+ millions.


Shopify

Shopify is a leading e-commerce platform known for its


user-friendly interface and extensive customization Shopify merchants will have over 700 million buyers
options. Founded in 2006, it has become a go-to choice this year.
for businesses looking to set up online stores.

Over 4.36 million websites are currently using Shopify. Last year Shopify processed $79.5 billion in order value.

Multi-Channel Selling: Shopify enables businesses to


Shopify is used in over 175 countries globally. sell across multiple channels, including social media
platforms, marketplaces, and in-person through point-
of-sale (POS) systems.
eBay

Market Global Selling Active


Reach Presence Opportunities Users
As of 2020, eBay had eBay operates in over 190 eBay sellers have collectively eBay have 129 million active
approximately 182 million markets around the world, earned over $73.9 billion in users in 2023
active buyers worldwide. making it one of the most annual gross merchandise
internationally recognized e- volume (GMV)
commerce platforms
Walmart

Customer E-commerce Seller Product


Reach Sales Growth Categories
Walmart serves more than 265 In 2023 Walmart is expected Walmart Marketplace has Walmart Marketplace offers
million customers weekly to generate $82.1 billion sales. seen significant growth in the over 35 product categories,
through its physical stores and number of sellers, with making it suitable for a wide
digital platforms thousands joining the range of sellers and products
platform each year
noon
noon.com is a fast-growing e-commerce platform based in the Middle East, serving customers in the
United Arab Emirates, Saudi Arabia, Egypt, and other Middle Eastern countries.

Growing
Market Seller Strategic E-commerce
Presence Opportunities Partnership Market
noon.com has over 30 million noon.com provides a platform In 2020, noon.com partnered The e-commerce market in
registered customers and for both local and with eBay to allow eBay sellers the Middle East and North
offers products in various international sellers to reach in the United States to easily Africa (MENA) region is
categories, including Middle Eastern consumers, reach Middle Eastern expected to reach $48.6 billion
electronics, fashion, beauty, tapping into a growing e- customers through the by 2022, presenting significant
and home. commerce market in the noon.com platform. opportunities for sellers on
region. platforms like noon.com
THANK YOU
FOR YOUR ATTENTION

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