According to a Report by Asian Development Bank, 95 % of Pakistani’s use Cash on Delivery option rather than other options for e-commerce transactions.
According to the report, Information and communications technology (ICT) is critical to enable e-commerce to grow. The report states that access to internet, speed and affordability, delivery capabilities and logistics are part of the crucial ecosystem that enables e-commerce system to thrive.
The report, “Embracing the E-commerce Revolution in Asia and the Pacific” ranks Pakistan at 120th spot when comparing the e-commerce readiness in the region.
The use of e-commerce among the firms in the previous year as mentioned in the report states that Pakistan had 400 e-commerce vendors which make up 0.44% of estimated 900,000 physical stores.
The report further highlights that the access to entrepreneurial financing serves as a major barrier for e-commerce start-ups in Pakistan, Bangladesh, Myanmar and other developing countries. Owing to the lack of a well-developed start-up ecosystem, Pakistan suffers from lack of venture capital investment. The report further stated that Paypal is not present in Pakistan which leads to limited e-commerce transaction options yet again.
Another reason, according to the report, for the lack of e-commerce transaction options is the lack of expertise needed to avail e-commerce options.
The report states that in 2016, there were 71 people out of every 100 people in Pakistan who had smartphones.
The number of online shopping platforms has increased considerably across Pakistan over the past years owing to emerging start-ups that offer e-commerce transaction opportunities but the above-mentioned factors serve as a hindrance to the use of other available options for e-commerce transactions.