How to start an e-commerce business in Pakistan

 

In Pakistan. starting an E-commerce business could be a complex and challenging process amid a lack of payment processing facilities. The e- commerce industry is continuously growing at a fast pace.

In the current year 2023, the market size for e-Commerce is predicted with a revenue of US$6,724 million. This number places Pakistan ahead of many developing countries such as New Zealand, The current revenue is expected to grow at 6.1% which would create a market volume of US$8,500 million by the year 2027.

New and aspiring entrepreneurs are stepping up to seek new e-Commerce opportunities. In this article, we discuss all the major steps that can help you start an e-Commerce business in Pakistan in 2024.

E-commerce models:

There’s high competition in Industry so the first step is to identify the business model. There are four basic types.

Business-to-customer (B2C): The B2C model aims at selling to consumers directly online. A prime example in Pakistan is Daraz. Individual customers go to the website, search for a product and order online. The majority of online businesses fall into this category. If you have a product or service to sell, set up your website and start selling online.

Business-to-business (B2B): B2B models aim to facilitate businesses selling products or services to other businesses (not individuals). Amazon Business and Alibaba are prime examples of B2B eCommerce models.

Identify Your Niche and Target Market:

It is very important to identify the niche of your business and targeted audience. A niche is a specific area that the business aims to operate in and the target market is the group of people who may be interested in your business. Remember, a business could sell a product or a service. You can set up a website and sell online or you can set up a shop (marketplace) on Facebook, Amazon, Instagram, or Daraz.

 

Develop a Business Plan:

 

After establishing the niche and target market of the business, the next step is to develop a business plan. A business plan is a document that identifies business goals, and strategies. The strategies particularly focus on marketing avenues to spread out the word and reach out to the audience who may be interested in that business.

Here’s a quick list of 5 things you need to take care of.

1- Select a business name and start building your brand:

When choosing a business name, following steps you need to keep in mind:

• Make it memorable and easy to pronounce.

Check that the domain name is available.

• The name should be unique.

• Consider the potential for future growth.

• A positive connotation should be attached to the name.

After choosing the name you can start building your brand by developing a brand identity. This includes creating a logo, brand colors, and a tagline. Also, you can create a website and social media accounts to help establish your online presence.

In order to establish a strong and identifiable brand it’s also important to maintain your brand image and message across all marketing and communications materials that can engage your target audience.

2- Register Your Business:

After choosing a brand name you will need to register your business and obtain any necessary licenses. To register a business in Pakistan, you will need to take the following steps

• Get registered with FBR and obtain NTN (National Tax Number)

• Register with SSCP

• Register with the Local Chamber of Commerce

It is recommended that you consult with a lawyer or accountant for specific advice on how to register your business name in your city.

3- Create your e-commerce website:

After you have taken care of the business mission, and legal aspects, the next step is to get your online presence and it begins with developing your e-Commerce website. A website can be developed in WordPress or Shopify.

e-Commerce website. A website can be developed in WordPress or Shopify.

Don’t have any expertise in building e-Commerce websites?

Head to Work Chest, post your project and get proposals from talented website developers all across Pakistan.

4- Build Your Inventory and Create Product Listings:

Once the website is set up, the next step is to populate the store with products. You will need to upload inventory that includes product name, description, price, pictures, and item number (quantity) available in stock. Next, you’ll need to arrange logistics such as branded packaging, warehousing, inventory management, and shipping.

In Pakistan TRAX, and TCS are front runners for e-commerce courier services.

5- Marketing & Advertisement: