The total revenue of e-commerce transactions due to the Government stringent lockdowns imposed in FY 2020 is around PKR 34.8 billion. The pandemic adversities are a godsend for the e-commerce market in Pakistan. A sharp decline in the e-commerce transactions also witnessed in the 3rd Quarter of FY2020 as the government lifts the lockdowns and people started accessing the markets themselves.
E-commerce Market Stats
According to the Karachi Chamber of Commerce and Industry, with a population of 208 million the Pakistan e-commerce industry was estimated at Rupees 99 billion in 2018, with a Year-on-Year 92% growth.
The stats revealed by the State Bank of Pakistan that COVID-19 hampered the e-commerce growth in Pakistan. The year-on-year growth was recorded at 78.9% in the year 2020, which was 92% in the year 2019.
The e-commerce growth is a result of the transformation of most of the businesses into online where customers can directly interact with the manufacture or service provider. The shift from physical to online wholesale and retail e-commerce plays a vital role in the e-commerce growth in Pakistan.
During the 1st quarter, the e-commerce revenues were Rupees 8.1 billion, 2nd Quarter, which is the highest, Rupees 10.2 billion, 3rd Quarter was Rupees 7.1 billion and 4th Quarter is sharply increased by 2.4% which is Rupees 9.4 billion, whereas the registered number of merchants associated with the commercial bank also increased by 30% in FY2020. The number of Debit/Credit card transactions is also increased by 88% followed by 10.2 million transaction volume in the e-commerce transactions in FY2020.
E-commerce Potential In Pakistan
There is still a huge potential that is unexplored in the Pakistan e-commerce market. Customers still have a fear of scam and this volatile online transaction system is not 100% safe due to the ongoing malware and ransom threats by unseen hackers.
Everyone knows that AMAZON.COM is the biggest E-commerce online retailer in terms of revenue in the whole world. According to statista.com, retail e-commerce sales worldwide amounted to US$3.53 trillion in the year 2019. It is predicted that e-commerce revenues would grow up to US$6.4 trillion in the year 2022. It proves that Pakistan is not the only country where pandemic hardships turned boon. The strict lockdown is packed as a godsend for e-commerce growth.