E-Commerce Business at its core can be referred to the sale and purchase of goods as well as services via electronic channels most probably the Internet. Internet can be termed as one of the wildest invention of this century and as created a boom in online sale and business industry as well. People now tend to perform all their activities on Internet and that also includes shopping. Internet has completely revolutionized the way of doing business as you can not only sell the physical products but can also sell digitized products such as videos, audios, software and services over the Internet through your proper E-Commerce Business.
In a successful and comprehensive E-Commerce Business all the transactions that involve various business and government organizations, consumers and financial organizations are done online via Internet. The concept of E-Commerce has evolved over the years and with the advent of technology related to smart phones online business has become more popular and mobile commerce has created its own independent market. Social Media is also a great driver of E-Commerce Business as Face Book drives 85 percent of sales on the E-Commerce platform of giants like Shopify.
Pakistan is also included as one of those countries where the percentage of Internet and smart phones users is leveraging with each passing day. However the size of E-Commerce in Pakistan is considerably small but with the advancement in technology and building of trusting among the business and consumer it is expected that soon there will be realization of the full potential of E-Commerce Business in Pakistan as there are number of advantages associated with the E-Commerce Business such as there are no geographical barriers as it comes in an open structure, the cost of transaction is also very low in E-Commerce businesses and there are very limited barriers associated with the entry in the world of E-Commerce Business.
In the current scenario there are number of factors that are hampering the growth of E-Commerce in Pakistan. These factors are explained in detail as under:-
Delusion about E-Commerce Business in Pakistan
Most of the people in Pakistan don’t have the actual concept about the E-Commerce business due to low literacy rate and non-exposure to the actual facts and figures regarding E-Commerce. Most of the people think online shopping only revolves around purchasing digitized products and the payment can be only done through the credit card. Most of the people in Pakistan don’t possess a credit card so that don’t realize that they can also purchase online physical products without having a credit card. Moreover the conventional entrepreneur of Pakistan don’t know exactly that E-Commerce Business means serving the existing customers, developing new and advanced markets and exploring new channels of distribution for the existing products.