In Pakistan, the e-commerce industry has now existed for almost 20 years and it continues to grow, local companies are competing with international giants like Amazon to cater to the needs of Pakistani consumers.
These companies offer a range of products and services to make online shopping accessible and convenient for the growing number of people who prefer to shop online.
In this article, we will explore five of the top Pakistani Amazon competitors that are worth checking out in 2023. These platforms offer unique features and benefits that make them viable alternatives to Amazon for Pakistani shoppers.
Read more: A Quick Guide on the Different Types of Ecommerce Business Models
The Growth Of E-Commerce In Pakistan
Pakistan's e-commerce industry has seen rapid growth in recent years, driven by increasing internet penetration, smartphone usage, and a growing middle class with more disposable income.
According to data released by the State Bank, there were 3,003 registered e-commerce merchants in Pakistan in 2020–21, a 76% growth from the 1,707 registered in 2019–20.
The Pakistani eCommerce market contributed to the global growth rate of 17.0% in 2023 with an anticipated increase of 4.9%.
Moreover, the market volume is anticipated to reach US$8,100.5 million by 2027, with revenue predicted to rise at a compound annual growth rate (CAGR 2023–2027) of 6.2%.
This growth has led to the emergence of several e-commerce platforms, each offering unique features and benefits to attract consumers. With more people turning to online shopping, the future looks bright for the e-commerce industry in Pakistan.
The Benefits Of Shopping On Local E-Commerce Platforms
Shopping on local e-commerce platforms has several benefits for Pakistani consumers.
Firstly, these platforms offer a wide range of products at competitive prices, making it easy for consumers to find what they need without breaking the bank.
Secondly, local e-commerce platforms offer faster and more reliable delivery, with many offering same-day or next-day delivery options.
Finally, shopping on local e-commerce platforms helps support the local economy and creates job opportunities for Pakistani workers. By supporting local businesses, consumers can contribute to the growth and development of the country's e-commerce industry.
The Impact Of Amazon Business Model On Pakistan's E-Commerce Industry
The Amazon business model has revolutionized the way people shop online, with its vast product range, fast delivery, and customer-centric approach.
However, the global giant's dominance in the e-commerce industry has also had an impact on local players in Pakistan.
According to a report by Euromonitor International, Amazon market share in Pakistan's e-commerce industry is expected to grow from 1% in 2020 to 5% by 2025.
This growth is likely to put pressure on local e-commerce platforms to compete with Amazon's prices and delivery times, as consumers become more accustomed to the convenience of online shopping.
However, local platforms are innovating and adapting to these challenges, offering unique features and benefits that cater to the needs of Pakistani consumers.
Despite the growing Amazon market share, there is still ample room for local players to thrive and grow in Pakistan's e-commerce industry.
Read more: How to Start a Dropshipping Business in Pakistan
5 Pakistani Amazon Competitors In 2023
The rise of e-commerce in Pakistan has led to the emergence of several platforms that cater to the needs of online shoppers.
We’ve selected the top five competitor of Amazon and compiled the list for you below.
1) Markaz
Markaz is a social commerce platform that aims to make online shopping more accessible to people who don't have access to traditional e-commerce channels.
It allows resellers to create their own online storefronts and sell products to buyers directly through the platform.
Markaz also offers a range of tools and resources to help resellers manage their businesses more effectively. This is why it is one of the leading Amazon competitors.
Some of its features include:
Zero Investment:
Markaz allows resellers to start their online business with zero investment. Resellers don't need to buy inventory upfront, and they don't need to pay any fees to join the platform. This makes it easy for anyone to start their own online business, regardless of their financial situation.
Vast Range Of Products:
Markaz offers a vast range of products for resellers to sell on their online storefronts. Resellers can choose from a wide range of categories, including fashion, electronics, home appliances, and more.
This allows resellers to cater to a broad range of customers and maximize their earning potential.
Highest Earning:
Markaz offers some of the highest earning potentials for resellers. Resellers can earn up to 25% commission on the products they sell, which is higher than many other e-commerce platforms in Pakistan.
This allows resellers to earn a significant income from their online business and achieve financial independence.
Empowering Women And Students:
Markaz aims to empower women and students in Pakistan by providing them with opportunities to start their own online businesses and earn an income from home. The platform offers training and support to help resellers succeed, regardless of their background or experience.
Comprehensive Support Services:
Markaz provides start-to-end support and management for resellers. This includes product sourcing, inventory management, order processing, and customer service.
Resellers don't need to worry about the day-to-day operations of their online business, allowing them to focus on selling and growing their business. Markaz also offers marketing support to help resellers reach a wider audience and increase sales.
Read more: How To Become An Online Seller With The Markaz App: A Step-By-Step Guide
2) Daraz.pk
The next Amazon competitor on the list is Daraz.pk. It is one of the largest online marketplaces in Pakistan. It offers a wide range of products, including fashion, electronics, home appliances, and more.
Daraz.pk has a strong logistics network that allows it to deliver products to customers quickly and efficiently. It also offers a range of payment options, including cash on delivery, credit cards, and mobile wallets.
3) OLX
The third competitor of Amazon is OLX which is a popular online classifieds platform in Pakistan where people can buy and sell a wide range of items, including cars, electronics, furniture, and more.
OLX allows users to create their own listings for free, and it has a robust search feature that makes it easy to find what you're looking for. It also offers a range of safety features, such as the ability to report suspicious listings and chat with buyers and sellers directly through the platform.
4) Alibaba:
Alibaba is a Chinese e-commerce giant that has a strong presence in Pakistan. It offers a wide range of products, including electronics, clothing, and more.
Alibaba's platform connects buyers and sellers from all over the world, and it offers a range of tools and resources to help businesses manage their e-commerce operations more effectively.
Alibaba also offers a range of payment and logistics solutions to help businesses streamline their operations.
5) PriceOye:
PriceOye is a price comparison platform that helps consumers find the best deals on electronics, appliances, and other products.
It compares prices from various online retailers in Pakistan to help users find the best deals. PriceOye also offers a range of other features, such as product reviews and buying guides, to help users make informed purchasing decisions.
Read more: Rising Trends in E-Commerce in Pakistan
Challenges Faced By Pakistani E-commerce Platforms
While Pakistani e-commerce platforms are thriving and offering unique features and benefits to consumers, they still face several challenges.
One of the biggest challenges is the lack of infrastructure, particularly in terms of logistics and payment processing. Many consumers in Pakistan still prefer to pay in cash on delivery, which can be time-consuming and costly for e-commerce platforms.
Another challenge is the low level of digital literacy among some segments of the population, which can make it difficult to attract and retain customers.
Finally, there is the issue of trust, as many consumers are wary of online transactions and may be reluctant to share their personal and financial information with e-commerce platforms.
Despite these challenges, local e-commerce platforms in Pakistan are making progress and finding innovative ways to overcome these obstacles and grow their businesses.
Conclusion
The e-commerce industry in Pakistan is rapidly growing, with more and more consumers turning to online shopping for convenience and accessibility.
Local players like Markaz are offering unique features and benefits to attract consumers and compete with international giants like Amazon.
Despite the challenges posed by Amazon's growing market share, local e-commerce platforms are innovating and adapting to cater to the needs of Pakistani consumers.
By supporting these local businesses, consumers can contribute to the growth and development of Pakistan's e-commerce industry.
FAQs
1. Which website is most searched in Pakistan?
Google is positioned #1 with YouTube, Tapmad, and Facebook.com ranked 2nd, 3rd, and 4th, respectively, in Pakistan.
2. Which platform is best for eCommerce in Pakistan?
Daraz.
3. Which products sell most online in Pakistan?
Clothing is the most popular product in Pakistan, with women's clothes being the most popular subcategory. Anything sells, whether it is ethnic or Western, domestic or foreign, inexpensive or expensive
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