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CONSULTANTS
 NCBA&E
BBA (Hons.)

E-COMMERCE IN Touseeq Farooq

Usman Javid

PAKISTAN Usama Murtaza

E-COMMERCE IN PAKISTAN

• Pakistan is one of the fastest growing e-commerce countries

• According to various figures, Pakistan's e-commerce sales in 2017
were $ 622 million, 0.34% of the retail market, which is doubling
every year. It is expected to reach 1 billion US dollars by 2020.

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CONSULTANTS
• its contribution to the gross domestic product (GDP) from 52% to
60%, according to the State Bank of Pakistan (SBP)
• E-commerce is booming in the country due to relatively larger
penetration of internet, which is further making it easier to do business
by lowering the cost of transaction.
• The business-to-consumer (B2C) side of e-commerce is growing
rapidly whereas large-scale investment in the business-to-business
(B2B) category is under way.

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CONSULTANTS
Use Of E-Commerce
In Pakistan
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• The number of registered e-commerce merchants has risen by 2.6-
times and e-commerce payments have surged 2.3-times in a span of
just twelve months, as per a State Bank of Pakistan (SBP) report.
• Pakistani businesses have embraced e-commerce. Hundreds of
retailers, ranging from clothing outlets to electronic equipment stores,
are now using websites to sell goods to customers

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CONSULTANTS
USE OF E-COMMERCE IN PAKISTAN

• The emergence of several online marketplaces, such as Daraz.pk and

OLX Pakistan, has made it easier for retailers to sell goods on the web.
At the same time, a number of new online businesses have also
propped up.
• A number of government departments have started to offer services via
the Internet. In the private sector, four Pakistani airlines now offer e-
ticketing and almost all local banks offer online banking services

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• . This segment of the economy is expected to grow steadily as there
are approximately 44.6 million Internet subscribers in Pakistan and
this figure is expected double during the next five years

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• E-commerce entrepreneurs enjoy heavy traffic on Pakistani holidays
and event season such as Eid-ul-Fitr (June), Eid-ul-Adha (September),
Black Friday, New Year and Wedding Season (October through April).
Major sporting events can also drive purchases of related equipment
and apparel

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• As per the SBP’s Payment Systems Review (Q2FY18), there were a
total of 344 e-commerce merchants in the country registered with
banks at the end of 2016. By the end of 2017, that number had climbed
to 905

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• Pakistani consumers mainly use the cash-on-delivery (COD) system to
buy goods online. As per one estimate, almost 85 per cent of online
sales occur through COD. Using this, we can speculate that roughly
Rs25.5bn e-commerce payments may have occurred in the Oct-Dec
period through the COD system

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CONSULTANTS
CURRENT MARKET TRENDS IN
PAKISTAN FIRST UP
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The e-commerce sector has focused mainly on consumer products. Online
customers in Pakistan search for and purchase consumer electronics and
mobile phones, employment queries, online education and counseling,
sale/purchase and information gathering about vehicles, computers and
accessories, financial services, laptops and notebooks, motor vehicles by
brand, test preparation and tutoring, and apparel and accessories. Consumer
choices and the records they generate also produce a trove of data

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E-COMMERCE MODELS

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 There are some common E-commerce models:
• Drop Shipping
• Wholesaling And Warehousing
• White-labelling
• Private Labeling & Manufacturing
• Subscription-based

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DROP SHIPPING

Drop shipping is when an e-commerce store buys the

products from a manufacturer or wholesale and sell it to the
customers at a commission. This is the simplest form of e-
commerce that eliminates the hassle of managing
inventories, stock or dealing with packaging. You just need
to set up a storefront and handles payments and orders

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CONSULTANTS
WHOLESALING & WAREHOUSING

Wholesaling and warehousing require a significant

investment, to begin with. You must manage and
organize the inventory and also follow the orders.
This requires tracking demand, customer orders,
shipping information and also investing in the
storage space
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 WHITE LABELING

White-labeling is a business plan in which one company

produces the product, and another company rebrands and
distributes it.
This is a faster strategy, and you just have to choose a
successful product that is sold by other companies. You then
need to design your package, label and sell it. You’ll see this
model usually in the beauty and wellness industry.
The biggest challenge of white labeling is demand. You must
completely manage what you order. To tackle this problem,
most companies set a minimum amount of production.

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PRIVATE LABELING & MANUFACTURING

Private labeling and manufacturing is a good option for low

investment. So, if you have the perfect idea with lack of
resources to build your factory, this might be your option.
Companies, which manufacture off-site products for sale,
send the plans or prototypes to contract manufacturers who
produce the product according to the customer’s
specifications. They may ship it directly to the customer, to a
third party or the company selling the final product

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 SUBSCRIPTION BASED

• This model aims for long-term commercial

engagement by offering customers incentives to
shop again with the same brand. For this, e-
commerce companies use a subscription model
to provide their customers with a set of products
selected at regular intervals

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Thank You
TOUSEEQ
03116252022
touseeqfarooq@hotmail.com