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Express Tribune
29-03-2025
- Business
- Express Tribune
SMEs face e-commerce bottlenecks
Listen to article Pakistan's small and medium-sized businesses are trying to catch up with the global e-commerce boom, but their journey is not easy and is riddled with many infrastructural bottlenecks like unreliable internet, payment barriers and a lack of trust in online shopping to name a few. There are various estimates on the current size of the e-commerce sector. According to the Payment and Commerce Market Intelligence (PCMI), a subsidiary of America's Market Intelligence, the total e-commerce volume in Pakistan in 2024 was $7.7 billion while retail e-commerce amounted to $5.4 billion. PCMI has forecast a compound annual growth rate (CAGR) of 17% for e-commerce between 2024 and 2027, with the projected value of transactions expected to reach $12 billion. This growth is driven by a young, tech-savvy population and the rise of business-to-consumer (B2C) and business-to-business (B2B) platforms such as Daraz, Alibaba and Shopify. For SMEs, which make up over 90% of Pakistan's businesses and contribute 40% to its GDP, going digital is not just an option, it is now becoming a survival strategy. Yet, many business owners say the path to success is far from smooth. Take the example of Sana Ahmed, an artisan who sells handmade jewellery. When the pandemic hit, Ahmed's local sales dropped by 80%, forcing her to move business online. "I started posting my products on social media platforms and online marketplaces, and within months, orders started coming from those cities which I never even visited," she said. Today, 60% of my sales come from overseas Pakistanis in the Middle East and Europe. "However, customers abroad want to pay through PayPal, which is not available here. I have to use bank transfers, which take days in process or opt for cash-on-delivery, which sometimes leads to order cancellations," she added. On the other side, ie, customers, trust remains a big issue. Ali Raza, a Lahore-based online shopper, said he prefers cash-on-delivery for most online purchases. "Last year, I paid upfront for a phone charger that never arrived. Now, I only use cash-on-delivery, even if it costs extra," he said. According to PCMI, in Pakistan 75% of online shoppers prefer cash-on-delivery. This phenomenon is still common as it was 10 years ago. While the digital payment volume, according to figures quoted by the State Bank of Pakistan (SBP), jumped to 84% in FY24, most of those were in-store mobile payments and not online sales. Economists argue that without secure, user-friendly payment systems, e-commerce growth will stay limited. "Imagine if India had not introduced Unified Payments Interface (UPI) or if Bangladesh did not have bKash, would they have been able to boost their e-commerce industries to current levels," asked Osama Siddiqui, a Karachi-based economist. "Pakistan's Raast system is a good start, but it needs to scale faster," he added. The internet itself is another stumbling block. Pakistan ranked 97th globally in mobile internet speed in February 2025, with an average speed of 25.39 Mbps, far behind India, ranked 20th with 144.33 Mbps and Bangladesh, at 87th place with 37.98 Mbps, according to Ookla's Speedtest Index. In rural areas, the problem is even worse. Usman Khan, who runs a small clothing store in Peshawar, said internet outages cost him sales volume daily. "Last month, there was a 12-hour shutdown in our area, customers could not access my website, and at least 50 orders were canceled. Even when the internet works, uploading product photos takes a much longer time," he said. Such decade-old issues put Pakistan's SMEs and their online presence at a disadvantage compared to regional neighbours. India's e-commerce market, worth $123 billion, thrives on cheap data and widespread digital literacy, while Bangladesh's $7.5 billion sector benefits from tax breaks for online exporters and a robust mobile money ecosystem. Government initiatives, like the 2019 Digital Pakistan Policy and the National E-Commerce Council, are aimed at bridging these gaps. Recent moves include tax incentives for IT exports and talks with global payment platforms. Google Pay has initiated its services from Pakistan recently but it is a one-way method. Nevertheless, SME owners say progress is too slow. "We hear about workshops on digital marketing and B2B methodologies, but they are only held in big cities. How will a craftswoman in Swat or a farmer in Sindh learn these skills," asked Sana Ahmed. Others demand better infrastructure. "The government should treat internet access like electricity or water, it's a basic need for businesses now," said Usman Khan, neglecting the fact that electricity and water are still not available in far-flung areas. Osama Siddiqui added that logistics and shipping costs are also key issues both for domestic and global shipments. Apart from that, with low consumer spending due to hyperinflation, there is a need for SMEs and online businesses to find new markets to survive. There is a huge young population spending most of their time on smartphones. Many like to buy online in every part of the world. "Going online is not easy, however, it is the future. We have to build proper infrastructure and most importantly, build trust among local and foreign buyers. We often see customers who shop on their phones. If we cannot fix our problems, they will ultimately disappear and we may lose a big market," Siddiqui remarked.
Yahoo
28-02-2025
- Business
- Yahoo
PCMI Launches the Global E-Commerce Data Library
MIAMI, FLORIDA / / February 28, 2025 / Payments and Commerce Market Intelligence (PCMI) has premiered its Global E-Commerce Data Library. Currently featuring data on 35 countries around the world but soon to be expanded even further, the Library features strategic e-commerce data for professionals in payments, online sales, financial services and other sectors. It's part of the global payments market research services that PCMI offers. "While there's lots of e-commerce data out there, it's not often tailored to the needs of professionals trying to uncover revenue opportunities for their companies," explains Lindsay Lehr, Managing Director of PCMI. "That's why we developed the Global E-Commerce Data Library to feature both transactional data showing actual behavior and historical trends over time. Our team also interviewed top e-commerce leaders to understand the market dynamics and shape the Library to offer maximum value for users," she explains. The Global E-Commerce Data Library features e-commerce figures on both mature (Australia, Brazil, Hong Kong, Japan) and developing markets (Bolivia, Indonesia, Kenya, Pakistan, and Vietnam). "Our team is pushing hard to expand the Library's coverage into many more markets, especially in regions such as Asia Pacific and EMEA," says Lehr. However, the Global E-Commerce Data Library isn't designed to be a static data set. "Companies that purchase country data have the option of working with our team to customize the data," explains Lehr. "This means we can expand the data to cover more specific concerns a company may have, allowing for deep dives into e-commerce segments or purchase types or consumer behavior," observes Lehr. Beyond customization, after purchase, all clients are entitled to a free one-hour consultation with a PCMI expert to review and explain the data set. "We added this feature so that we could understand client objectives in purchasing the data and show them its relevance in achieving those objectives," points out Lehr. "Via customization and consultation, we can make the data resonate more strongly with the client's goals and not just be a fixed set of numbers in a file." PCMI's website features more information on the Global E-Commerce Data Library, including methodology, data access and the purchase process. About Payments and Commerce Market Intelligence (PCMI)PCMI is an advisory group focused on the global payments industry, with over 30 years of experience providing market intelligence to global corporations and has executed over 500 client engagements in the payments industry since 1993. PCMI performs custom strategic engagements including market sizing, opportunity benchmarking, market entry, customer insights, and more, covering over 50 global markets in the Americas, EMEA, and APAC regions. Contact Information Abel Delgado Digital Marketing Directoradelgado@ SOURCE: Payments and Commerce Market Intelligence View the original press release on ACCESS Newswire Sign in to access your portfolio
Associated Press
28-02-2025
- Business
- Associated Press
PCMI Launches the Global E-Commerce Data Library
MIAMI, FLORIDA / ACCESS Newswire / February 28, 2025 / Payments and Commerce Market Intelligence (PCMI) has premiered its Global E-Commerce Data Library. Currently featuring data on 35 countries around the world but soon to be expanded even further, the Library features strategic e-commerce data for professionals in payments, online sales, financial services and other sectors. It's part of the global payments market research services that PCMI offers. 'While there's lots of e-commerce data out there, it's not often tailored to the needs of professionals trying to uncover revenue opportunities for their companies,' explains Lindsay Lehr, Managing Director of PCMI. 'That's why we developed the Global E-Commerce Data Library to feature both transactional data showing actual behavior and historical trends over time. Our team also interviewed top e-commerce leaders to understand the market dynamics and shape the Library to offer maximum value for users,' she explains. The Global E-Commerce Data Library features e-commerce figures on both mature ( Australia, Brazil, Hong Kong, Japan) and developing markets (Bolivia, Indonesia, Kenya, Pakistan, and Vietnam). 'Our team is pushing hard to expand the Library's coverage into many more markets, especially in regions such as Asia Pacific and EMEA,' says Lehr. However, the Global E-Commerce Data Library isn't designed to be a static data set. 'Companies that purchase country data have the option of working with our team to customize the data,' explains Lehr. 'This means we can expand the data to cover more specific concerns a company may have, allowing for deep dives into e-commerce segments or purchase types or consumer behavior,' observes Lehr. Beyond customization, after purchase, all clients are entitled to a free one-hour consultation with a PCMI expert to review and explain the data set. 'We added this feature so that we could understand client objectives in purchasing the data and show them its relevance in achieving those objectives,' points out Lehr. 'Via customization and consultation, we can make the data resonate more strongly with the client's goals and not just be a fixed set of numbers in a file.' PCMI's website features more information on the Global E-Commerce Data Library, including methodology, data access and the purchase process. About Payments and Commerce Market Intelligence (PCMI) PCMI is an advisory group focused on the global payments industry, with over 30 years of experience providing market intelligence to global corporations and has executed over 500 client engagements in the payments industry since 1993. PCMI performs custom strategic engagements including market sizing, opportunity benchmarking, market entry, customer insights, and more, covering over 50 global markets in the Americas, EMEA, and APAC regions. 305-441-9300
