Today, over 4.6 billion people worldwide use the Internet1, and the total number of Internet users worldwide increased by 319 million in the last year alone. This means that each day, an average of 875,000 new users are added. These startling statistics demonstrate how quickly the Internet is taking over the world. as the same ratio e-commerce is also increasing.
The world of Internet trading has changed as a result of the growing popularity of the Internet. Smartphones, social media, and other similar technologies have also contributed to the continued growth of Internet trading.
Marketing is beginning to shift from the physical to the virtual realm. As a result, it is only natural for you, as an entrepreneur, to go with the flow. In fact, wanting to take your business to the next level is a wise decision.
If you’re thinking about starting an e-commerce business in Pakistan, you’ve come to the right place to get all the information you need.
You will learn everything you need to know about starting an e-commerce business in Pakistan, including what products you can sell online in Pakistan, why Pakistan is such a great market choice, and how Alibaba can help you achieve your objectives.
What exactly is e-commerce?
Simply put, e-commerce refers to any business transaction that takes place in cyberspace. It is also commonly known as Internet marketing. In today’s digital age, running an e-commerce business is not a novel concept. And it is not incorrect to say that wherever the Internet has spread, the concept of online transactions has also spread. E-commerce has grown into a massive industry, with over 4 billion people worldwide using the Internet.
We all know that time is of the essence. Everyone is looking for a faster way or method to get a lot done in the least amount of time. Few people today prefer to buy products through traditional channels.We’ve come to regard the process as time-consuming and overly strenuous. E-commerce makes shopping more convenient.
You can now sit in the comfort of your own home, open your smartphone, and search online for an e-commerce business store with a large inventory. And with just one click, you can order almost anything and have it delivered right to your door. Distance is no longer an impediment in the age of e-commerce. Sellers and entrepreneurs from all over the world can ship products to you.
As a seller, you no longer need to rent a building or a store for your business. This means you won’t have to worry with the trouble of paying for things like energy, water, and rent. You may start trading your items and services right away with a smartphone without leaving your house. To put it simply, the huge rise of the Internet has brought buying and selling to a whole new level of convenience.
Today, the e-commerce industry appears to be suffocating the physical market. Both buyers and sellers are growing to see the Internet as a more convenient way to conduct business. This is because internet trading is distinguished by its convenience, 24-hour availability, capacity to save time, and, most crucially, ability to reduce expenses.
Top Reasons to Invest in Pakistani E-Commerce
The Internet has made its way deep into Pakistan. Pakistan had more than 61 million Internet users as of January 2022. 2 The number of Internet users increased by 11 million between 2021 and 2022.
This steady increase in internet use in Pakistan is astounding. And these figures show no signs of slowing down. This obviously makes Pakistan a fertile ground for the growth and development of e-commerce.
Pakistan is also the world’s fifth most populous country.
3 Furthermore, 64% of Pakistan’s population is young. 4 These statistics clearly demonstrate that Pakistan is a gold mine that can provide a lucrative source of income for e-commerce entrepreneurs. Still unsure? Here are some of the reasons why you should start your online trading business in Pakistan.
- Technology development: The digital world is rapidly expanding in Pakistan. This is not surprising given that youth make up more than half of Pakistan’s population. This makes it an excellent place to launch any online business. There will always be a market for your products. Furthermore, the government of Pakistan is working hard to foster an environment conducive to online transactions. This is due to the fact that online transactions improve the overall health of the economy.
- 5G broadband network and smartphone availability: After using 3G and 4G broadband, Pakistan is set to launch the 5G network broadband. This will allow for a stronger and faster Internet connection. Smartphone prices have also decreased, allowing a greater number of people to obtain a smartphone and begin using the Internet.
- Acceptance of digital cash: Online cash transactions have grown in popularity. Different countries are beginning to follow the trend because they can no longer afford to ignore it. Pakistan is among the countries that has adopted this policy. As a result, many payment gateways have emerged. This will increase people’s trust in digital currency over time. This would lead to an increase in online fund transfers. Furthermore, with the ability to transfer funds online, e-commerce will become much stronger and more deeply ingrained in the system.
- Beneficial environment for entrepreneurs: Pakistan has a fantastic entrepreneurial culture. They also have a government that promotes business. The government is constantly looking for ways to create a favourable environment for entrepreneurs, particularly Internet businesses. This has aided the expansion of small and medium-sized entrepreneur businesses in Pakistan.
- Great export system: Pakistan is known for its exports. Here is a list of the top 10 Pakistan’s exports5 and the revenue each product generated:
- Miscellaneous textiles, and clothing: US$4.2 billion (20% of all exports)
- Clothing, accessories (not knit or crochet): $3.5 billion (16.7%)
- Knit or crochet clothing, accessories: $3.3 billion (16.1%)
- Cotton: $1.8 billion (8.4%)
- Cereals: $1.2 billion (5.9%)
- Leather/animal gut articles: $716.7 million (3.5%)
- Copper: $596.7 million (2.9%)
- Optical, technical, medical apparatus: $421 million (2%)
- Mineral fuels including oil: $393.8 million (1.9%)
- Fish: $372.5 million (1.8)
This list demonstrates that Pakistan’s e-commerce industry is doing exceptionally well in terms of exports. As an online trader, you have the opportunity to profit from this lucrative system.
Using Alibaba.com, you can become an exporter. It is the largest business-to-business online marketplace where you can sell your products to customers and other businesses. These companies may be interested in purchasing and selling your products at a retail price. You can also sell raw materials to factories that will make finished goods from them.
Checklist for starting an E-commerce business in Pakistan
Alibaba.com is the best place to start if you want to break into the world of e-commerce. This is due to the fact that it has the largest business-to-business (B2B) marketing platform.
As an entrepreneur, you can use this platform to buy products in bulk and resell them at a profit. Having a strong social media presence will also help you sell your products more efficiently and quickly. These are the steps to take if you want to start a digital marketing business.
1. Do your research
Before starting any business, you should conduct extensive research. Consider the following questions:
Who is my intended audience?
How much money can they afford?
What are their tastes?
How much money do I need to begin my online trading business?
What are the most successful businesses in Pakistan?
2. Choose what you want to sell.
It is always preferable to specialise in selling a specific product. It won’t help you as a beginner if you don’t have a core product with which you can be identified. Having a major product allows you to focus all of your efforts on acquiring as many customers as possible for that product.
You can also avoid the distraction of attempting to diversify your marketing strategy for each product. Nonetheless, as time passes, you can expand and introduce new products. However, it is best to begin with a single product.
3. Follow the procession.
Some products are considered to be trendy. They sell quickly. You must identify these items and begin selling them. To attract customers, you can begin selling at a lower price. When demand is high, you can begin gradually raising the price. Groceries and electronics are two items that are always in high demand in Pakistan.
4. Find a dependable wholesale distributor.
As a retailer, you must purchase products in bulk. Otherwise, you’ll make next to nothing. As a result, you need someone reliable from whom you can purchase your products in bulk. Alibaba.com can connect you with reputable wholesale suppliers. It is best to build a strong relationship with your supplier. That way, they don’t let you down and sell you high-quality goods.
5. Choose your shipping method.
The term shipping as used here simply refers to the transport of goods ordered by a customer. There are several options for shipping purchased goods. They can be transported by air, truck, rail freight, and so on. AliExpress provides a number of shipping options for your products. It is a very dependable method of getting your products to your customers. The cost of shipping options varies. Here are some of the shipping options on AliExpress:
- Standard Shipping from AliExpress
- Singapore Post
- EMS
- Singapore Post
- DHL
- Malaysia POS
- FedEx
- UPS
6. Make a system for storing your inventory.
When you buy in bulk, you’ll need a place to store the items until they’re purchased. This must be a safe location where your belongings will not be stolen or destroyed.
Of course, you are free to keep them in your home. If you have a large number of products, you may need to rent a warehouse to store them. This is significant because you cannot sell products that have been destroyed or damaged. If your customer discovers that you sold them faulty goods, they may lose faith in you. Having a secure location to store your inventory is therefore essential.
You could also experiment with drop shipping. You won’t need a storehouse to keep your inventory this way.Dropshipping is the process of passing a consumer’s order directly to the wholesaler. You serve as a middleman, gathering people’s orders and passing them on to the supplier. After that, the products are shipped directly from the suppliers to each consumer.
7. Choose the best distribution channel for your products.
You can set up a website to sell your retail goods. You can also use social media platforms like Facebook, Instagram, Twitter, and others to reach out to customers. If you decide to build a website, you must do the following:
- You must purchase a domain name and secure reliable hosting for your website.
- You will need a registered domain name as well as a good content management system (CMS) such as WordPress.
If you are purchasing a website, make certain that you:
- Keep an eye out for the website extension. Do you prefer the extension ‘.pk’ or ‘.com’?
- Purchase a good domain name. This is the first impression your customers will have of your company.
- Make sure you buy a hosting service from a reputable company.
- Install the Secure Socket Layer (SSL) (SSL). This indicates that your website is secure and safe to use.
- Purchase a website with a fantastic theme. This will make it very easy for your customers to navigate your website and buy whatever they want.
8. Begin marketing your products.
The value of social media in advertising cannot be overstated. With so many people on social media, you have a very large audience. If you own a website, make sure that the content is search engine friendly. This means they must be SEO-friendly.
You must design your content so that whenever a question about your product or service is typed into the Google search engine, your website appears at the top of the search engine result page (SERP).This will increase traffic and possibly lead to more product sales. You can advertise by providing discounts to your customers. Discounts increase the popularity of your products. People are always looking for items that are less expensive.
