Exploring the growth paths of Pakistan’s e-commerce industry

In 2024, Pakistan’s e-commerce landscape continues to evolve, driven by a combination of technological advances, innovative business models and changing consumer behavior. With a population of over 242.8 million, Pakistan’s digital economy is poised for significant growth, providing fertile ground for innovative business ventures. This growth is based on a young, tech-savvy population and the growing use of smartphones. It is expected that up to 74% of Pakistanis will use smartphones in the next few years.

In Pakistan, the retail sector is dominated by around 700,000 to 1.1 million organized retail outlets, which provide consumers with a wide range of choices to suit their shopping needs. Despite the well-established market and infrastructure, online stores need to offer more than traditional brick-and-mortar stores to succeed in this competitive environment. While convenience is a significant advantage that attracts customers to shop online, it is not the only factor that influences their decision.

In Pakistan’s growing e-commerce environment, customers highly value a wide selection of products and an efficient warehousing system. Success depends on striking a delicate balance between managing costs, profitability and delivering personalized solutions to customers around the world. This requires establishing effective internal operations and creating strategic partnerships with traditional retailers, especially for new players in the industry. Such cooperation enables e-commerce platforms to develop their product offerings and effectively meet customer needs.

Moreover, the digital revolution has ushered in a new era of consumer engagement, with social media and online platforms becoming increasingly important in influencing purchasing decisions. In Pakistan, where smartphone penetration is still growing, businesses need to fully leverage the power of digital channels to effectively engage with their audiences.

As the e-commerce landscape changes in the country, companies like Foodpanda have played a key role in transforming the consumer experience. Well-known digital players such as Daraz.pk, Bykea and Zameen.com, to name a few, have also established themselves as key contributors to Pakistan’s growing digital economy, offering a variety of products and services to an increasingly technologically savvy society.

By investing in strong infrastructure, education, and policies that enable inclusive growth, Pakistan can lay the foundation for sustainable economic development in its thriving e-commerce industry. Strong infrastructure, including reliable utilities and efficient transportation networks, is essential for digital businesses to operate smoothly. Investment in education, especially in areas such as technology and digital skills, can create a skilled workforce that is fundamental to innovation and growth in the sector. By creating policies that promote inclusive growth, such as streamlining business processes, improving data security measures, and enabling digital skills, Pakistan can create an environment that supports the success of e-commerce ventures, driving economic progress for businesses of all sizes.

Looking ahead, collaboration and innovation will be key success factors, enabling online platforms to overcome challenges and thrive. With the support of technology, data analytics, and strategic partnerships, companies across industries can unlock new opportunities and drive growth in the digital era of tomorrow.

The author of the text is the director of Q-commerce, Foodpanda Pakistan