E-commerce has been steadily rising in Pakistan over the last few years, and 2024 marks a significant turning point. With more people getting online, businesses adapting to the digital world, and customers embracing the convenience of online shopping, the e-commerce industry in Pakistan is thriving.
Here is an estimation of eCommerce market growth by source Statista:
- The eCommerce market is expected to generate $5,035.00 million in revenue by 2024.
- Revenue is anticipated to grow at a compound annual growth rate (CAGR) of 5.92% from 2024 to 2029, with a predicted market volume of US$6,711.00 million by that time.
Let’s look at the reasons behind the growth of e-commerce in Pakistan in 2024 and how it is progressing.
Growing Internet Access Across Pakistan
One of the main reasons behind the growth of e-commerce in Pakistan is the increasing access to the internet.
Look how:
COVID-19 Changed Shopping Trends
The COVID-19 epidemic may have peaked, but its consequences on consumer behavior are not going away.
During the pandemic, many people turned to online shopping out of need.
However, it’s become a habit for many people, beginning as a way to get necessities without having to leave the house.
So,
- Pakistan’s e-commerce market expanded by 35% in 2020.
- This growth trend has continue through 2024.
- Consumers have become increasingly aware of the convenience of online shopping.
- More businesses are now offering delivery and online payment options.
- It is clear that e-commerce is here to stay in Pakistan’s retail industry.
The Rise of Digital Payments
For many years, cash-on-delivery (COD) was the preferred payment method in Pakistan.
However, with the rise of digital wallets like Easypaisa and JazzCash, as well as the increasing use of credit and debit cards for online transactions, the way of payment is changing.
However,
- State Bank of Pakistan reported that e-banking transactions exceeded 1.2 billion in 2022.
- This number is continuing to grow.
- The ease of online payments without relying on cash is a major factor driving the shift to e-commerce.
In 2024, it’s expected that digital payments will become even more widespread, further boosting e-commerce sales.
Emergence of Online Marketplaces in Pakistan
Pakistan’s e-commerce industry is being driven by popular online marketplaces such as
- Daraz,
- Foodpanda,
- OLX
These platforms have become household names, offering everything from clothing and electronics to groceries and home services.
These platforms provide everything from groceries and home services to gadgets and clothes that’s why have become household brands.
For example, Daraz, one of Pakistan’s leading e-commerce platforms, has millions of users and continues to grow rapidly.
It is now simpler for small and medium-sized enterprises to enter the online market because they can reach a wider audience through this marketplace without having to invest in a physical store.
Increased Trust in Online Shopping
In the early days of e-commerce, many Pakistanis were hesitant to shop online due to concerns about fraud, product quality, and delivery issues. However, as e-commerce platforms have improved their services, consumer trust has increased.
Online platforms like Daraz offer buyer protection, easy return policies, and customer reviews, giving customers more confidence in their purchases.
Moreover, businesses have also improved their logistics and delivery services, ensuring timely and secure deliveries across the country.
However, with greater trust in online transactions, more people are willing to make purchases from e-commerce websites.
Opportunities for Small Businesses
E-commerce is providing countless opportunities for small businesses and entrepreneurs in Pakistan.
In 2024, more small businesses are expected to join the e-commerce ecosystem, benefiting from the digital tools and platforms available to them. This not only helps them grow but also contributes to the country’s economy by creating jobs and increasing trade.
E-commerce market size and projections for Pakistan in 2025
| Aspect | Projection |
| Current Market Size | $9.1 billion projected by 2025 |
| Annual Growth Rate (2022-2025) | 6.09% |
| Growth Drivers | -Increasing Internet Access -Young and Tech-Savvy Population – Convenience of Online Shopping |
| Projected CAGR (2024-2028) | 14.3% |
| Projected Market Volume (2028) | $4.99 billion |
Why consumers are shifting to online shopping in Pakistan
Consumers in Pakistan are shifting to online shopping due to changing consumer preferences and behaviors.
Here are some reasons why:
- Modern-day customers prioritize convenience, flexibility, and accessibility, which online shopping offers.
- Widespread internet access has made it easier for consumers to shop online.
- Online shopping offers convenience, flexibility, and accessibility, which are attractive to busy consumers.
Top 5 eCommerce Websites in Pakistan
Here are some of the best eCommerce websites in Pakistan:
Daraz.pk
Daraz. pk stands out as a major player in the online retail market in Pakistan, offering a vast range of products to a diverse audience.
This platform is perfect for those who enjoy the convenience and variety of online shopping. Its broad product range suits different needs, from everyday essentials to specialty items.
Moreover, it’s an excellent platform for local Pakistani businesses looking to expand their reach and tap into a larger online market.
Pros
- pk offers an extensive selection of products, making it a top choice for customers seeking variety and convenience.
- The platform is beneficial for Pakistani businesses, giving them access to a larger market.
- Many users report positive experiences, appreciating the reliability of receiving their orders as expected.
Cons
- Some users have encountered issues with false or substandard quality items.
- There are complaints about poor customer service, highlighting an area that could use improvement.
- Difficulties with the return policy have been reported, which may discourage potential buyers.
Lootlo.pk
Lootlo.pk has established itself as a leading player in Pakistan’s e-commerce market, earning the title of the No. 1 Online Shopping Website.
With its extensive range of products and services, Lootlo.pk caters to a diverse array of consumer needs, making it a preferred choice for those seeking a comprehensive shopping experience.
Top of Form
Bottom of Form
Pros
- pk offers a broad spectrum of products and services, ensuring that nearly every consumer need is addressed.
- Provides deals on everything from restaurants and salons to retailers and grocery stores, making it a go-to site for bargain hunters.
- The platform’s app enhances the shopping experience by offering detailed information about merchants, including directions, menus, pictures, and live discounts.
Cons
- While specific drawbacks are not highlighted, experiences can differ based on individual preferences and expectations, which is a common feature of online platforms.
Telemart.com
Telemart.pk has established itself as a prominent e-commerce site in Pakistan, particularly catering to budget-conscious customers. It’s an excellent choice for customers looking for discounted products and who are willing to manage potential challenges with customer service and delivery.
The quality of the products received has generally received positive feedback, making it a reliable option for quality-conscious buyers.
Pros
- pk is recognized for its exceptional discounts on a wide range of products, offering a cost-effective shopping experience.
- The platform’s customer support team is noted for its straightforward and timely communication, helping resolve queries and issues effectively.
Cons
- Despite efforts to improve, many shoppers have reported slow response times and difficulties in obtaining refunds, indicating room for improvement.
- There have been concerns about late deliveries and, in some cases, non-delivery of products, which affects the overall customer experience.
- While many customers are satisfied with the quality, some have received defective or substandard products, which can be a significant concern for potential buyers.
Shopify
Shopify has rapidly gained popularity as an e-commerce platform in Pakistan. The platform saw a notable quarter-over-quarter growth of 25.4% in Q3 of 2024, underscoring its increasing relevance in the Pakistani e-commerce market.
Shopify’s capability to support a broad range of digital and physical products makes it a valuable asset for businesses aiming to enhance their online presence.
Pros
- Shopify’s significant growth in Pakistan highlights its effectiveness and growing popularity among local businesses.
- The platform’s versatility allows businesses to sell a wide array of digital and physical products, meeting various e-commerce needs.
Cons
- Depending on the plan chosen, Shopify can be a considerable investment, which might be challenging for smaller businesses or startups.
- Although feature-rich, Shopify’s complexity can be intimidating for beginners, necessitating a learning curve to fully utilize its capabilities.
AliExpress
AliExpress is ideal for e-commerce businesses in Pakistan seeking to source inventory at wholesale prices, particularly those interested in the dropshipping model.
It is also an excellent option for individual shoppers looking for low-cost items and a wide variety of products.
Pros
- AliExpress features a vast selection of items, including clothing, jewelry, electronics, and beauty products, making it one of the most versatile e-commerce sites in Pakistan.
- AliExpress provides great deals across various categories.
- The platform doesn’t require any paid membership.
Cons
- Some users have reported issues with customer service, credit card transactions, and buyer protection, which can be areas of concern.
- Despite the low prices, there have been reports of inconsistent product quality.
- Slow shipping and a complicated return policy have been drawbacks for some customers.
How E-commerce Growth is Transforming Pakistan’s Economy and Society
| Aspect | Impact |
| Economic Growth | Creates jobs in business, logistics, and delivery. Supports SMBs by expanding market reach and competition. |
| Financial Inclusion | Improves financial access via online payment gateways and mobile wallets. Benefits women and rural residents lacking traditional banking services. |
| Entrepreneurship | Fosters entrepreneurship among young Pakistanis. Encourages innovation in operations, marketing, and product development. |
| Consumer Empowerment | Enhances shopping experience through price comparisons, reviews, and a wide range of products. Leads to greater satisfaction and value for money. |
Challenges and Opportunities
Despite significant growth, the e-commerce sector in Pakistan faces several challenges:
- Limited Infrastructure: In some parts of the country, the lack of robust logistics and delivery systems can hinder e-commerce development, especially in rural areas.
- Digital Literacy: Although internet access is expanding, digital literacy remains a challenge for certain segments of the population. This can limit the adoption of e-commerce.
- Cybersecurity Concerns: Ensuring the security of online transactions and protecting consumer data are crucial for building trust and encouraging broader e-commerce adoption.
However, these challenges also present opportunities for growth and innovation.
By investing in infrastructure development, promoting digital literacy programs, and enhancing cybersecurity measures, Pakistan can overcome these obstacles and fully realize the potential of its e-commerce sector.
Future Trends in E-commerce
The future of e-commerce in Pakistan is bright, with several trends expected to shape its growth in the coming years.
- Platforms like Facebook and Instagram will play a larger role, with influencer marketing and social selling becoming prominent trends.
- Traditional retailers will integrate online and offline channels, providing seamless shopping experiences.
- E-commerce platforms will invest in data analytics and AI to personalize recommendations, offers, and customer service, boosting engagement and loyalty.
- : E-commerce will expand into sectors like food, pharmaceuticals, and healthcare, addressing a wider range of consumer needs.
- Specialized platforms catering to niches like eco-friendly products and handmade goods will gain traction.
- The rise of digital wallets, buy-now-pay-later options, and cryptocurrencies will enhance payment flexibility and adoption.
- E-commerce platforms will prioritize eco-friendly practices, such as sustainable packaging and carbon-neutral delivery options.
- Expect continued government backing with incentives, infrastructure investments, and initiatives to boost e-commerce in rural areas.
Conclusion
In 2024, e-commerce in Pakistan has a bright future ahead of it. As more businesses and customers are comfortable for online shopping, the e-commerce industry will continue to expand, offering new opportunities for growth.
Online retailers may reach an expanding group of tech-savvy customers eager for flawless online buying experiences by employing the appropriate tactics and financial commitments.
Let’s explore the opportunities and innovations that will shape the future of online retail in Pakistan.
