5 Major Challenges Faced by Ecommerce Websites in Pakistan

Ecommerce Challenges Faced by Ecommerce website in Pakistan

Over the years doing business online has become very common and convenient around the world. Organizations are no longer only displaying their product online, but trades are taking place for products as well as services.

In the recent years businesses in Pakistan have also taken route for eCommerce websites. This for some businesses has worked out; yet others face certain challenges to operate through a business website.

Here are the five major challenges faced by eCommerce websites in Pakistan;

1.     Literacy Issues

There is yet a very larger proportion of Pakistani population that is not literate. Without the knowledge of existence of a thing such as “eCommerce website” one cannot access or avail it.

With only a certain proportion of this entire population using internet; there is yet an even smaller proportion that would shop online.

With the high operating costs of online business this problem shrinks the market even further.

2.     Lack of Trust

As the eCommerce website practice and use is somewhat new to the citizens of this country; its acceptance is still building up. People are now starting to look for merchandise online and even willing to purchase it.

The only hurdle here is lack of trust. Without taking a look at the product first people drop their buying decision often; unless it is a brand they trust and have used several times in the past.

In other countries people may consider online shopping as a time saver; but here even after a long search on the internet people would rather spend more of their time and go take a look at the outlet as well.

3.     Costs and Delivery

The major purpose of having an eCommerce website is to cut down the cost of business while being able to satisfy the customer just as in any physical professional environment. For merchandise based businesses meeting this criterion is quite a hurdle to their sales and operations.

It takes quite a fortune to even still to run a website, maintain inventory stock, market products and deliver the request. But when it comes to maintaining the credibility; product delivery is a spoiler.

Our transportation system is somewhat unreliable. As long as a business is employing the services of local transport companies it cannot guarantee a time based delivery to customers. With fewer sales only the more costs are incurred.

4.     Payment Issues

Profits are what the businesses are working for; but for online businesses convincing people to trust their payment methods is a major issue.

Most online businesses and eCommerce websites in Pakistan demand online payment before the delivery of product or service. Firstly there is not a very large proportion of population in Pakistan that owns a credit card. The general practice here is to pay with cash so people who are even aware of the service do not bother to avail it.

Without a credit card online payments cannot be made and hence is a loss of sale for the business. Unless it is an expensive item that requires amount to be transferred to an account most businesses prefer credit card payments.

On the other hand people who do own a credit card do not trust websites to keep their data safe unless it is a renowned brand that they have dealt with before and trust completely.

5.     Nature of Public

There are a few things that will take time for Pakistanis to change. Other than not trusting the online display and only what the eyes see and the hands feel, not trusting the online payment system and wanting to pay with cash there are still a couple of more attributes in the thinking of people here that keep them from online purchases.

Ecommerce websites generally do not have a product return or bargain policy. People here are accustomed to these practices.

It makes people uncomfortable to accept fixed prices. More over people feel insecure to think that a useless item cannot be returned or exchanged.

Read More:

  1. 10 Best Ways to Improve your E-Commerce Website
  2. Make your eCommerce Website in minutes with BizClout
  3. 9 Brilliant Ways to Generate More Conversions for your Ecommerce Website in Pakistan

 

These are some major challenges faced by Pakistanis!  Which kind of challenges are still missing? 
Share in your comments……….

Author: Sheraz Saeedy

Sheraz is an entrepreneur and Co-Founder of AdClout & BizClout . Helping Startups to smartly spend early investments.

Share This Post On
  • Tabinda Qureshi

    Lack ov trust is always being an issue for me, as well as product quality.
    Scares fraud.

    • Syed Arslan Baqir

      hmmm nice

    • sherazsaeedy

      You are right Tabinda, this issue is of everyone. But with the time eCommerce industry is maturing and cash on delivery option let you return the product if you are not satisfied with quality.

      There are cases of fraud but now there are cyber crime laws in place (reservations are still there) and you can sue someone if you do not get your product or of poor quality. But I would suggest to opt COD option first and later if you find a seller good, you may go for advance payments.

  • Wasif Hashmi

    most of the online outlets are only used by Pakistanis to get an estimate of price for a product. then they select a product and buy it from the local market, they get cheaper from online outlet, they check the product extensively and now know who to visit if something were to go wrong.

    fortunately ebusinesses can tackle most of these issues. and trying to do so.

    so before putting the blame on people and infrastructure, we should also blame ecommerce sites who fail to feel the pulse of our market and fail to be creative with their business models.

    • sherazsaeedy

      Wasif, thank you for your sharing your thoughts and you are right that eCommerce industry is trying to cop up with many issues available in Pakistan.

      In Pakistan and south Asia its true that people purchase when they physically see the product, off course it gives a confidence to spend your money. This issue is somewhat resolved by using cash on deliver option which let people to pay after the product is delivered.

      Secondly eCommerce outlets are improving and they also need a maturity which is being achieved in decades in EU and North America. I am sure as eCommerce touched $ 25M in 2013 it will grow a lot more in coming years.

  • ahmad farooq

    what are the problems faced by a business in pakistan?

  • http://www.fashiontrends.pk/ rolex

    Our economy have many issues now our villagers have issue to sale animals for qurbani.

  • http://bakraonline.pk/ belahadi

    I donot know more about Pakistan ecommerce, i just know about JS group and its business :
    http://www.siyasat.pk/js-group-and-its-businesses-in-pakistan-t127477.html