E-commerce is increasing speedily in Pakistan and becoming the primary trend among internet users. So the first question that arises is what is an E-commerce? E-commerce is known as the transactions which are organized electronically through the internet. In simple words, E-commerce is buying and selling products or services over the internet.
E-commerce in Pakistan started around two decades ago when PayPal service was banned in the country and buyers and sellers have to rely on bank payments. Now there are many companies that are running eCommerce business in Pakistan where some of the leading e-commerce sites are daraz.pk, OLX and Zameen etc.
As e-commerce is growing fastly in Pakistan but there are some issues that the eCommerce industry is facing.
Unskilled Workers and Lack of Awareness
Lack of awareness and skilled workforce is becoming a problem for ecommerce sites to run and expand their business.Education institutes need to provide necessary skill sets and awareness to the students according to the demand of the ecommerce industry.
Lack of trust in online payments
There are multiple payment methods which are preferred but there is also mistrust in online payments and mostly users still choose the cash delivery method for making online purchases.
Imposition of taxes
Taxation is one of the major issues for stakeholders of e-Commerce platforms.The government has imposed a sales tax on the selling of goods through an online marketplace.
Poor quality electricity and Internet
Poor quality of Internet , electricity framework and power shortage is the major issue in the ecommerce industry because internet and electricity are the two basic needs for running ecommerce business in pakistan.
Poor shopping experience and unfavorable reviews
When people purchase online products they may face poor product experience and leave unfavorable reviews. This is due to poor delivery or fake reviews on ecommerce websites.It is important to increase the trust in new brands to face significant challenges.
Over the past few years the scope of ecommerce is rapidly increasing in Pakistan so the government should play a vital role in providing the necessary facilities to grow and benefit from the ecommerce marketplace. Sellers must overcome the above discussed issues to become successful in ecommerce industry