Untapped potential: E-commerce can create 2m jobs in Pakistan

[Abdullah719]

E-commerce in Pakistan has a huge potential for creating two million jobs and boosting the country’s GDP up to $40 billion in the next couple of years. Transformation is required to promote the information, communications and technology sectors to reposition Pakistan in the digital economy.

Rawalpindi Chamber of Commerce and Industry (RCCI) President Saboor Malik in a statement urged the government of Pakistan to adopt new dimensions of the economy as the digital platform has been rapidly growing around the world and countries like Pakistan are still far behind in this race.

The federal cabinet had already approved the e-commerce policy for promoting digital culture and paperless trade to help enhance the trade volume. However, digital platforms for e-payments are the need of the hour. More than 66% of the payments for e-shopping are being made as cash-on-delivery (COD) basis which does not reflect the true sense of digital platform, he added.

https://tribune.com.pk/story/2261280/untapped-potential-e-commerce-can-create-2m-jobs-in-pakistan

 

[sweep_shot]

E-commerce is much more efficient than brick and mortar business.

If I ever run a business, I may run it completely online.

 

[Bhaag Viru Bhaag]

E-commerce is much more efficient than brick and mortar business.

If I ever run a business, I may run it completely online.

As long as you are not living in a place like Kashmir, online business is the way to go.

 

[Abdullah719]

COVID-19 hardships turn boon as Pakistan's E-commerce grows by 79pc

The e-commerce market in Pakistan witnesses a year-on-year growth of 78.9% and 33.3% in volume and value respectively in 2020, according to the latest e-commerce data by the State Bank of Pakistan (SBP).

The COVID-19 pandemic has essentially transformed how businesses interact with their consumers. While many wholesale and retail businesses have shifted online to reach their target market through e-commerce, others have used social media and the rising power of influencers to step into the arena of digital marketing.

State Bank’s e-commerce data compiled by DYL Ventures shows that e-commerce transactions fell by ~500,000 orders in the last quarter of FY2020 as compared to the 3rd quarter of FY2020.

However, e-commerce revenue increased sharply by Rs.2.3 billion to Rs.9.4 billion in the last quarter of FY2020, brining the yearly e-commerce revenue to Rs.34.8 billion.

Number of e-commerce merchants who are registered with banks have also increased by more than 30%, summing up to 1707 as of June 2020.

A major factor that supported the growth of the e-commerce sector has been the rise in the use of digital payments. E-commerce transactions by debit, credit and prepaid cards in FY2020 increased by around 88% and 18% in volume and trade as compared to the last year.

E-commerce transactions by debit, credit and prepaid cards were also the highest during the 2nd quarter of FY2020, when the COVID-19 lockdown was imposed on businesses and customers could not physically visit the stores.

However, online transactions have fallen after the lockdown was lifted in Pakistan, indicating the need to develop more long-term policies in the retail and banking sectors to complement this growing need.

In addition to this, most customers in Pakistan also rely heavily on Cash-on-Delivery (COD) due two main factors: lack of trust in the online retailers and higher taxes imposed on the already inaccessible digital payment options. Many banks in Pakistan either do not allow online payments through debit cards or charge an additional amount on debit card payments. Brick and mortar retailers also add on an additional 2.5% fee on the use of credit/debit cards, which further dis-incentivizes customers from shifting to digital payment systems.

Hence, recent trends indicate that accelerating growth in Pakistan’s e-commerce sector is contingent on improving access to digital payment systems and reducing both direct and indirect costs associated with this payment method.

https://www.brecorder.com/news/4002...rn-boon-as-pakistans-e-commerce-grows-by-79pc

 

[Last Monetarist]

https://www.dawn.com/news/1622354/pakistan-to-be-added-to-amazons-sellers-list-within-next-few-days-pms-aide

Adviser to the Prime Minister on Commerce and Investment Abdul Razak Dawood said on Thursday that Pakistan would be added to e-commerce giant Amazon's sellers list within the next few days.

"We have finally made it. We have been engaged with Amazon since last year and now it’s happening. It is a great opportunity for our youth, small and medium enterprises and women entrepreneurs," he said.

"An important milestone of the e-commerce policy has been achieved through teamwork by many people across the globe," he said. Pakistan has remained off Amazon's list of sellers despite the company's presence in neighbouring India. Pakistani retailers wishing to sell their products on the marketplace would register their companies from other countries, in an effort to bypass Pakistan.

However, after being added to the list, Pakistani merchants will be able to sell their products on the platform with ease. But this does not mean much for Pakistani consumers; it will mostly benefit Pakistan-based merchants that want to sell their products abroad.

Meanwhile, Special Assistant to the PM on Political Information Dr Shahbaz Gill said that the current government had achieved something that had not been achieved during the last 10 years of the country's history.

"Amazon has included Pakistan in its list of sellers. With this development, Pakistan has now joined the international market. This will result in billions in investment and produce employment opportunities. Thank you Imran Khan," he said. Last year in June, the Ministry of Commerce had said it had shared the names of 38 exporters with Amazon for registration to promote trade and explore new markets for Pakistani exporters.

The details were shared during the second meeting of National e-Commerce Council, which reviewed the implementation of various policies at federal and provincial levels for the promotion of e-commerce.

“Initially, a list of 38 exporters have been communicated to Amazon, which is limited to surgical, sports goods and home textiles sectors,” the commerce secretary had said, adding that the list will be expanded to other sectors in near future.

 

[MenInG]

<blockquote class="twitter-tweet" data-partner="tweetdeck"><p lang="en" dir="ltr">A great development as Amazon has finally approved that our sellers can export their goods through their system. Amazon starting operations in Pak will open opportunities for our youth as it will enable a new breed of young men & women entrepreneurs to join the export market.</p>— Imran Khan (@ImranKhanPTI) <a href="https://twitter.com/ImranKhanPTI/status/1390376039973535751?ref_src=twsrc%5Etfw">May 6, 2021</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

[Bewal Express]

This is a huge step forward, and IA when we come out of FATF, the development of E-commerce businesses will accelerate even more. Lets hope we dont have the desi mentality of fleecing and stealing from customers, and we develop sustainable businesses. This could literally be a game changer. We need to get Paypal in asap and that as i undertand it, will depend on FATF which our crooks put us in with their money laundering.

 

[MenInG]

Adviser to the Prime Minister on Commerce, Textile and Investment Abdul Razzaq Dawood said on Friday that e-commerce giant Amazon had added Pakistan to its sellers' list.

In a tweet announcing the development, he said: "It is a big accomplishment for our e-commerce and will open up vast opportunities for a new breed of young men and women entrepreneurs. We congratulate everyone involved."

The list of countries eligible to sell on the platform can be viewed here. It has been updated to include Pakistan.

The commerce adviser also shared a message from Amazon International Seller Services Vice President Eric Broussard which stated that Pakistani entrepreneurs are now eligible to sell on the platform.

"We are eager to work with Pakistan's dynamic business community, including small and medium-sized sellers and help connect them with customers around the globe," he said.

Earlier in May, Dawood had said that the government had been engaged with Amazon since last year. “It is a great opportunity for our youth, SMEs and women entrepreneurs. An important milestone of e-commerce policy achieved has been through teamwork by many people across the globe," he had said.

Official sources had told Dawn that the Amazon decision for registration of Pakistani companies was the outcome of serious efforts of the commerce ministry and Pakistani missions in Washington and Los Angeles. A pilot project was launched with the help of the Pakistani embassy in Washington.

The sources had said that the major difference after being added to the sellers’ list would be that Pakistani companies would be able to create IDs using their Pakistani details, including Pakistani banks. Moreover, small and medium enterprises, youth and women entrepreneurs would have opportunities to connect with the global market.

Pakistan’s addition to Amazon’s sellers’ list also creates opportunities for exporters to sell their products through the platform. The platform offers Amazon’s 3P model (third party relationship — retailers sell directly to buyers through the marketplace) which serves brand owners while the 1P model (marketplace acts as retailers while brand is wholesale supplier) is for mass producers, who want to produce for Amazon brand items.

Some Pakistani companies are already selling on Amazon from their overseas offices but the country’s inclusion in the sellers’ list will increase opportunities for SMEs. The move is said to help promote more businesses and online buyers get access to Pakistani brands which can now reach all major markets through Amazon.

Pakistani products available for sale on Amazon are mostly textile, sports, leather and surgical goods. Earlier, Pakistani companies had to register from offices outside the country or produce goods for other brands available on Amazon.

DAWN

 

[Last Monetarist]

https://www.dawn.com/news/1634399/south-punjab-set-to-get-its-first-amazon-facility

Pakistan Post is set to inaugurate south Punjab’s first Amazon Fulfilment and Facilitation Centre (AFFC) in Multan after Eidul Azha. The facility will provide local handmade and cultural products access to the international market.

One-and-a-half months ago, Commerce Adviser Abdul Razak Dawood had announced that e-commerce giant Amazon had added Pakistan to its sellers’ list. Following the development, Pakistani entrepreneurs became eligible to sell on the platform. Small & Medium Enterprises (SME), youth and women entrepreneurs will have ample opportunities to connect with the global market via the Amazon platform.

The platform offers Amazon’s 3P model (third party relationship) where retailers sell directly to buyers through the marketplace which serves brand owners. Under Amazon’s 1P model, the marketplace acts as retailers while a brand is the wholesale supplier for mass producers who want to produce for Amazon brand items.

Post Master General (PMG) Zulfiqar Husnain said the opportunity would bring dynamism to the country’s manufacturing sector to compete in the international market.

“Most of the work has been completed on the AFFC at the General Post Office Dera Adda and it would be functional after Eidul Azha. An Amazon warehouse would also be established at GPO Multan. Work was also in progress to set up Amazon centers with warehouses in Bahawalpur, Rahim Yar Khan, Muzaffargarh, Sahiwal and other districts of south Punjab,” he added.

In this regard, the Pakistan Post officials also held a meeting with the Multan Chamber of Commerce and Industry (MCCI) to jointly work to promote local products in the international market.

MCCI president Khawja Salahuddin and others were present in the meeting to discuss working with Amazon.

Mr Husnain said Pakistan Post, MCCI and Amazon should collaborate to increase economic growth in the SME sector. “We would provide state-of-the-art facilities to the business community. Craftsmen would be given the opportunity to promote their products at international level by registering it on Amazon,” he added.

 

[Cpt. Rishwat]

E-commerce is much more efficient than brick and mortar business.

If I ever run a business, I may run it completely online.

How do goods get manufactured and transported currently from one place to another?

 

[MenInG]

A new study about the digital population of Pakistan has revealed that the country's internet penetration stood at 54 per cent during the year 2021, with almost half accessing the facility every day.

"Out of 54%, about 76% of Pakistanis are connected to the internet in Karachi, Lahore, Rawalpindi and Islamabad," according to a first-ever study conducted by Google and Kantar, a Karachi-based research company.

The ‘Journey to Digital’ research outlines how Pakistanis consume and spend their time on the internet, according to a statement.

Overall, the study said 66% of internet users were based in urban areas while 47% belonged to rural areas, and 46% of all Pakistanis accessed the internet every day.

Males, Generation-Z (people born from 1995 to 2010) and employees are significantly more likely to be connecting to the internet.

Young males were early adopters, accessing the internet more than any other group, it said, adding that they were also keener to try new things, and needed the internet for education and work.

"Majority of non-internet users simply didn't have the means to access the internet as they know about the internet but they can't get onto it because they didn't have an internet-enabled device or a reliable internet connection," the report said.

The internet usage surged due to Covid-19, it said, adding that before the lockdown there were around 79% of internet users in urban locations accessing the internet daily, which increased by 10% since the lockdowns.

YouTube, used by nearly 90% of all internet users, was the most popular application in Pakistan for streaming music and watching video/TV, and 38% Pakistan’s internet users went to YouTube in the research phase of their shopping journey.

Google Search is one of top five applications/websites used in Pakistan and widely used when researching and purchasing products online as well as travel, for information needs and even entertainment.

The report said one-third of all internet users in Pakistan made a purchase online and one fourth of these shoppers increased their spending during Covid-19 lockdowns.

"The reasons for turning to e-commerce are manifold, 71% of Pakistani shoppers find purchasing products or services online easy while 66% find it convenient, 54% agree that online shopping websites or apps give personalized product recommendations, which is a common task from shoppers."

https://tribune.com.pk/story/2312994/countrys-internet-penetration-stands-at-54

 

[MenInG]

The penetration of broadband services in the country has reached 49.94% with 109.61 million subscribers, according to a latest update released by the Pakistan Telecommunication Authority (PTA).

In terms of breakup of the overall subscribers by technology, the major part comprises mobile broadband users whose number stands at 106.67 million.

Similarly, subscribers who use digital subscriber line (DSL) come to around 1.48 million, fiber to the home (FTTH) 0.56 million, evolution-data optimised (EvDO) 0.26 million, 3G/4G LTE (fixed) 0.59 million, hybrid fiber coaxial (HFC) 19,000 and WiMax nine.

Pakistan’s teledensity has also increased to 86.79% -- of which 85.65% is covered by cellular services while 1.14% is covered jointly by fixed local loop (FLL) and wireless local loop (WLL).

As per the data, there are over 187.99 million cellular subscribers and the market continues to be dominated by Jazz with 38.35% (72.1 million) of the total subscriber base, followed by Telenor Pakistan with 26.36% (49.5 million), Zong with 22.34% (41.9 million), Ufone with 12.09% (22.7 million) and SCO with 0.86% (1.6 million).

It has also been observed that the growing data demand from users is leading to faster adoption of 4G compared to its predecessor 3G.

As per the PTA figures, the number of 4G users have crossed the 87.6 million mark.

In terms of 4G market share, Jazz leads with 34.5 million, Zong comes second with 25.9 million; followed by Telenor Pakistan with 19.4 million; Ufone 6.7 million; and SCO one million.

During November 2021, 15,311 complaints were registered by subscribers across the country

Due to large difference between the number of subscribers and cellular operators, the PTA in its latest annual report used an appropriate approach of dividing complaints against each operator per 1,000 customers.

As such, Telenor had 0.10 complaints per 1000 customers, Jazz 0.08, Zong 0.06 and Ufone 0.04.

Earlier, SpaceX had expressed its eagerness to launch Starlink’s satellite broadband internet in Pakistan.

A delegation of US-based global satellite broadband provider recently called on Minister of IT and Telecom Syed Aminul Haque to discuss the policy and operation model.

The group comprised SpaceX Director Middle East and Asia Ryan Goodnight and Head of Global Site Acquisition Ben Macwilliam. On the occasion, Haque mentioned that 40,000 schools and small and medium enterprises presented a unique opportunity to the company. He said the Starlink internet could also be expanded to the un-served and underserved areas of Pakistan.

Starlink was launched by billionaire entrepreneur Elon Musk that aims to sell internet connections to almost anyone on the planet by way of a growing network of private satellites orbiting overhead. After years of development within SpaceX, Musk revealed that Starlink had shipped more than 100,000 satellite internet terminals to customers in 14 countries.

https://tribune.com.pk/story/2335427/countrys-broadband-penetration-hits-4994

 

[daytrader]

Pakistan Becomes Third Fastest Growing Markets on Amazon

Pakistan has become the third fastest-growing market on the global marketplace of the American retail giant Amazon, just one year after joining the sellers’ list.

According to Marketplace Pulse, an e-commerce intelligence firm, thousands of Pakistani sellers have joined Amazon’s marketplace within one year of the country being added to its official list of sellers.

Pakistan is at the third spot among new sellers that joined Amazon’s marketplace in 2022, behind the US and China in first and second place respectively.

As of 2022, the top 10 countries with the highest number of registered Amazon marketplace sellers are as follows:

1. United States

2. China

3. Pakistan

4. United Kingdom

5. Turkey

6. Canada

7. Vietnam

8. India

9. Brazil

10. Japan

These sellers are expected to bring in $23 billion to the country in exports with the cotton textile production and apparel manufacturing being the largest industries in the country.

Let’s have a look at the 10 countries with the highest number of sellers registered on Amazon’s marketplace in 2022.

The former federal government under the Pakistan Tehreek-e-Insaf (PTI) promulgated the E-Commerce Policy of Pakistan in 2019. In 2020, the Federal Commerce Ministry under the Special Assistant to Prime Minister, Abdul Razzak Dawood, began negotiating with Amazon.

These negotiations resulted in Amazon including Pakistan on its sellers’ list in May 2021. Almost a year later, Pakistan now has the third-highest number of registered sellers on Amazon in 2022.

https://www.economy.pk/pakistan-beco...ets-on-amazon/