E-COMMERCE

University of Karachi
2023-24
 E-COMMERCE–AN ADVANCED FORM OF BUSINESS

Submitted To:
Name:Ms.Rukhshinda
By:
Names of students:
1)Maha Irfan Seat no.B22155006019
2)Maniha Khan Seat no.B22155006020
3)Noor ul Ain Ali Seat no. B22155006041
4)Sameera Muzaffar Seat no.B22155006045
In partial fulfilment for the degree of BS Commerce
Department Of Commerce
Faculty Of Management and Administrative Sciences
University Of Karachi
Karachi, Pakistan
13,Oct 2023

LETTER OF AUTHORIZATION
 First and foremost, praise and gratitude to Allah SWT. The Almighty, the Merciful God,
and the Lord of the universe who has blessed us with wonderful things in our life and thanks to
Allah who always gives help and strength, so we can finish this thesis.
We would like to express our special thanks of gratitude to our course supervisor
(Ms.Rukhshinda) who gave us the golden opportunity to do this wonderful project on the topic
(E-commerce) which also helped us in doing a lot of research and we came to know about so
many new things we are really thankful to her.
Secondly we would also like to thank our parents and family members who helped us a lot in
finalizing this project within the limited time frame.
We are over helmed in all humbleness and gratefulness to acknowledge our depth to all those
who have helped us to put these ideas, well above the level of simplicity and into something
concrete.
Lastly we would like acknowledge with much appreciation to the classmates. Thank you for
your precious time and your patience.No one who achieves success does so without
acknowledging the help of others.

iii

EXECUTIVE SUMMARY
 The report indicates that what is the origin of Ecommerce on both the scales
national and worldwide, as well as how to start a business in the field of Ecommerce to
make it a profitable choice, and it shows that despite the high levels of investment in
ecommerce solutions over the past two years, businesses overall are not deriving optimal
value or benefits from their technology. To improve their ecommerce performance and
their ability to react to fluctuating user preferences and any other potential global shocks,
realizing value from their technology investments will be critical for businesses. To do
this successfully, companies need to take a more user-centric approach, improve their
data analytics strategy, and evaluate the flexibility of their underlying infrastructure.
This report also sheds light on the future of Ecommerce which is expected to be bright
one as the technology and advancement continues to flourish over the years.
 iv
S.No Description Pg.No.
. TABLE OF
CONTENTS 1 Chapter I: Introduction 1-2
Background of the Study
2 Object Of the Study 2
3 Significance of the Study 2-3
4 Scope of the Study 3
5 Structure of the Study
6 Chapter II:Concept of 7-8
Ecommerce(Process,
History)
7 Importance of E-commerce 8-10
8 Features Of Ecommerce 13-15
9 Environmental Impact Of 15
Ecommerce
10 Ecommerce Worldwide 16-20
Statistics And Facts
11 Ecommerce In Pakistan 21-26
12 Benefits Of Ecommerce 26-29
13 Challenges Of Ecommerce 29-31
14 Security Measures For 31-32
Ecommerce
15 Future Of Ecommerce 32-34
16 Brief Summary 34
17 Conclusion 35
18 Recommendations 36
19 Appendices 37-39
20 Bibliography 40
21 Glossary 41
 v

LIST OF TABLES

S.No. Description Pg.No.

1(a) Top Ten 20
Economies in 2018
1(b) Overview of the 26
biggest E-
commerce
Platforms in Pak
 vi

. LIST OF FIGURES

S.No. Description Pg.No

1(a) Retail Ecommerce 19
Sales Worldwide
1(b) Population Of 28
Ecommerce in Pak
 vii

LIST OF OTHERS

S.No. Description Pg.No.

1(a) Key statistics Of E- 22

commerce
 viii

CHAPTER I:
BACKGROUND OF THE STUDY
The emergence of e-commerce, short for electronic commerce, marks a pivotal point in the history of
trade and business. Its origins can be traced back to the early experiments with electronic data exchange
(EDI) in the 1960s, a precursor to modern e-commerce, where businesses began to exchange electronic
documents and information. However, the true catalyst for the widespread adoption of e-commerce
came with the advent of the World Wide Web in the 1990s. This revolutionary technology democratized
access to information and initiated a fundamental shift in the way transactions were conducted.
Pioneering companies like Amazon and eBay established online marketplaces, demonstrating the
potential of e-commerce by offering a diverse range of products to a global audience. The late 1990s
witnessed the dot-com bubble, characterized by an exuberant influx of investment in e-commerce
ventures, though many of these early startups faced challenges. Despite the bubble’s eventual burst, e
-commerce continued to thrive, fueled by technological innovations, changing consumer preferences,
and the integration of mobile devices into everyday life.
 Today, e-commerce is a cornerstone of the global economy. The COVID-19 pandemic, which began
in late 2019, further accelerated its growth as lockdowns and social distancing measures prompted a
surge in online shopping. E-commerce platforms have diversified beyond traditional retail,
encompassing a vast array of products and services, including digital goods, subscription models, and
even groceries. The market is fiercely competitive, with industry leaders like Amazon and Alibaba
expanding their influence worldwide. E-commerce has become a way of life for consumers, offering
convenience, personalized experiences, and an extensive array of choices. It is a complex ecosystem
where logistics, cybersecurity, data analytics, and regulatory compliance play pivotal roles in its
sustainability and success.
This research paper seeks to delve into the complexities of the ever-evolving world of e-commerce.
As the global economy becomes increasingly interconnected, understanding the historical roots and
contemporary dynamics of e-commerce is vital for policymakers, businesses, and scholars. E
-commerce’s significance lies not only in its transformative power but also in its ability to influence

consumer behavior, impact traditional industries, and shape the future of commerce. By shedding
light on the historical context and current state of e-commerce, this study aims to provide valuable
insights into the challenges, opportunities, and potential directions of this dynamic field. It underscores
the need to adapt to this digital marketplace and harness its potential for the benefit of economies and
societies worldwide.

OBJECT OF THE STUDY

E-Commerce reporting is an important part of running an online business. Unfortunately, it’s not something
that they teach in business schools. We’ll talk about what it is, why it’s important?
E-commerce reporting refers to the process of collecting, reporting and analyzing data for your online
business. It’s also known as e-commerce tracking or analysis. The goal of reporting in e-commerce is to provide
data-driven insights into different facets of your online business, such as customer relationships, finance,
products and marketing. E-Commerce reports document the performance of your business over different time
periods, giving you accurate visibility into how it grows over time. With e-commerce reports, you’ll be able to
make forecasts and act based on facts and data rather than feelings and guesses. Data-driven decisions can
accordingly be made to inform your business’s growth strategy.

In short, an ecommerce report is a data presentation highlighting various insights about your
ecommerce business. It helps you gain an overall understanding of your online store, including your
products, orders, customers, and more. This powerful tool allows you to identify any potential
weaknesses and capitalize on any growth opportunities effectively. An accurate and well-designed
ecommerce report is a valuable asset providing greater visibility—helping you make crucial decisions.

SIGNIFICANCE OF THE STUDY

So, what makes this report important? Well, generally speaking, they provide information
you need to know about your online business that can help in improving future decisions. In more
detail, here are some important points that can be discovered through this document:

• Comparison
You can compare data to find similarities and differences. For example, you can compare data across
time periods or compare two metrics side by side in a report.
• Relationship
You can see how data is connected or could be connected. For example, with reports, you can
understand if the number of page views is related to conversion rates.
•Distribution
It shows how often something happens in a group of data points. We can look at distributions across
one, two, or three dimensions. For example, we might look at lifetime value by city by customer.
•Composition
It shows the elements or pieces that make up a whole. For example, the composition of your generated
revenue might be from 38% paid search and 62% organic search.
SCOPE OF THE STUDY
The scope of the research paper on E-commerce encompasses an extensive examination of various
aspects within the e-commerce industry, including its historical evolution, current market dynamics,
technological advancements, consumer behavior trends, challenges faced by businesses, regulatory
considerations, and the future prospects of e-commerce. This paper will analyze these facets on both a
global and regional scale, with a focus on providing comprehensive insights and actionable
recommendations for stakeholders in academia, industry, and policymaking.

STRUCTURE OF THE STUDY

METHODOLOGY
Methodology of our topic (E-commerce) is self research. We had collected the information from
different articles and websites. Basically there is a inbound methodology in e-commerce that moves
around 4 phases i.e. attract, convert, close and retain or delight.

RESULTS
 PAKISTAN’S E-COMMERCE POPULATION 2018

OVERVIEW OF THE BIGGEST E-COMMERCE PLATFORMS IN PAKISTAN 2012-20

,
 CHAPTER II
CONCEPT OF E-COMMERCE
*Electronic marketing.
*Buying and selling over an electronic system.
*The business whose transactions are performed electronically.
In the opinion of Philip Kotler: E-commerce can be described as a general term for buying and selling
procedure which is supported through electronic means.
With the internet, businesses can sell their products and services to the customers anywhere in the world
. It has opened up new markets and created opportunity for the businesses to reach the customer that
were previously inaccessible. E-commerce also leads to significant cost savings for businesses.

PROCESS OF E-COMMERCE
The process of e-commerce includes the following procedures:-
*Order placed
*Credit card charged
*Order completed
*Confirmation mail
*Order sent to warehouse
*Shipping to consumer
*Order sent to consumer
How does ecommerce work? E-Commerce works by connecting buyers and sellers using various
electronic channels for example, a channel is required such as a website or social media, so customers
can find products and services to purchase. Then a payment processor enables the exchange of the
goods or services. Once the transaction succeeds, the customer receives a confirmation email or SMS,
and a printable receipt. If the transaction is for goods, then the seller ships the items and sends the
customer a tracking number via email or SMS. If the transaction is for a service, then the service
provider can reach out to schedule and complete the service.
The process contains 4 stages of success that are useful in e-commerce business.
*Attract: get people to your website
*Convert: get people to want to buy.
*Close: get them to complete the checkout process.
*Retain: get them to come back and buy more.

BACKGROUND/HISTORY OF E-COMMERCE
Most of us have shopped online for something at some point, which means we’ve taken part in e
-commerce. So it goes without saying that e-commerce is everywhere. But very few people may know
that e-commerce has a history that goes back to before the internet began.
Online shopping was invented in pioneered in 1979 by entrepreneur Michael Aldrich in the United
Kingdom.Aldrich was an English entrepreneur and inventor who made online transactions processing
possible. E-commerce actually goes back to the 1960s when companies used an electronic system called
the Electronic Data Interchange to facilitate the transfer of documents. It wasn’t until 1994 that the very
first transaction. Took place. This involved the sale of a CD between friends through an online retail
website called Net Market. The industry has gone through so many changes since then, resulting in a
great deal of evolution. Traditional brick-and-mortar retailers were forced to embrace new technology
in order to stay afloat as companies like Alibaba, Amazon, eBay, and Etsy became household names.
These companies created a virtual marketplace for goods and services that consumers can easily access.
New technology continues to make it easier for people to do their online shopping. People can connect
with businesses through smartphones and other devices and by downloading apps to make purchases.
The introduction of free shipping, which reduces costs for consumers, has also helped increase the
popularity of the e-commerce industry.

IMPORTANCE OF E-COMMERCE
From startups to small businesses right through to huge brands, there are a huge number of
companies that can benefit from their own ecommerce website, where they can sell their own product

or services. In todays competitive and convenience focused society, no longer do consumers want to
venture to the high street in order to buy items, instead consumers want to shop from their own homes,
making ecommerce a flexible solution for both businesses and buyers.
INCREASE THE REACH
Due to the internet’s accessibility, millions of people across the world can view the website at any
time, meaning that for those looking to expand their businesses and reach out to a larger audience,
online retailers have many more opportunities to do so. Comparing the amount of people reaching
through a website to the amount that could be reached through a high street store or local advertising
there’s no reason that one shouldn’t look at taking their business online if they’re looking to improve
their reach.
GIVES YOU MARKETING OPPORTUNITIES
The website is one of the best marketing tools a business has, not only can the use of SEO when
building the site lead to more chances of the business getting found in search engines, but a huge
number of marketing techniques can also work alongside the website, including pay per click
advertising, social media marketing and email marketing, all of which can include links back to the
website.
SCALABLE
As the business grows it’s very likely that the owner will want to grow his product range and target
audience, as well as develop his business for customer requirements and consumer demand. An
ecommerce site lets him scale his business accordingly, allowing him to add more lines, add more
payment options and even grow when he choose to ship to, without having to worry about changing
the location or moving to a larger premises like he might with a brick and mortar store
Ecommerce offers business a whole range of opportunities, from marketing opportunities to
increasing your products ranges to generating more sales and with an optimized and well developed
website he can not only achieve these goals but also offer his customers a round the clock, convenient
service, that can boost the business.
COST EFFICIENCY
Operating an online store typically involves lower overhead costs than maintaining physical retail
spaces. This cost efficiency can lead to competitive pricing and increased profit margins for businesses.
DIVERSE PRODUCT SELECTION
E-commerce platforms provide access to an extensive range of products and services, often
exceeding what’s available in traditional retail stores. Consumers can find niche and specialized items
easily.
PERSONALIZATION
E-commerce leverages data analytics and AI to offer personalized shopping experiences. Customers
receive product recommendations tailored to their preferences, enhancing satisfaction and loyalty.
EFFICIENT SUPPLY CHAIN MANAGEMENT
E-commerce streamlines supply chain processes, reducing inventory costs and enhancing inventory
management through data-driven insights.
ACCESSIBILITY
E-commerce has made it possible for individuals with disabilities to shop independently, promoting
inclusivity in commerce.
MARKET EXPANSION FORSMEs:
Small and medium-sized enterprises (SMEs) can expand their market presence without the need for
extensive physical infrastructure, leveling the playing field in the business world.
JOB CREATION
E-commerce generates employment opportunities, not only in online retail but also in logistics, IT,
customer support, and digital marketing.
INNOVATION:
E-commerce continually pushes technological boundaries, driving innovation in areas like payment
systems, AI, and cybersecurity.
ECONOMIC GROWTH
E-commerce significantly to a nation’s GDP, fostering economic growth and attracting investment.
TYPES OF ECOMMERCE
BUSINESS-TO-BUSINESS (B2B) E-COMMERCE
Business-to-Business (B2B) e-commerce refers to the online exchange of goods, services, or
information between businesses. It is a digital platform where one business sells products or services to
another business, rather than selling directly to individual consumers. B2B e-commerce plays a crucial
role in modern business operations and supply chains. Here’s a detailed explanation of B2B e-
commerce:
BUSINESS-TO-CONSUMER (B2C) E-COMMERCE
Business-to-Consumer (B2C) e-commerce is a digital commerce model where businesses sell
products or services directly to individual consumers over the internet. It’s one of the most familiar and
widespread forms of e-commerce, encompassing a wide range of online transactions. Here’s a detailed
explanation of B2C e-commerce:
BUSINESS-TO-GOVERNMENT (B2G) E-COMMERCE
.Business-to-Government (B2G) e-commerce, also known as e-government procurement, refers to the
digital transactions and interactions between businesses (suppliers) and government entities (buyers). In
B2G e-commerce, businesses offer goods, services, or solutions to government agencies or departments
through online platforms and systems. Here’s a detailed explanation of B2G e-commerce:
CONSUMER-TO-CONSUMER (C2C) E-COMMERCE
Consumer-to-Consumer (C2C) e-commerce refers to online transactions where individual
consumers sell products, services, or assets directly to other individual consumers through digital
platforms or websites. C2C e-commerce has gained popularity thanks to online marketplaces and
classified ad websites, allowing people to engage in peer-to-peer commerce. Here’s a detailed
explanation of C2C e-commerce.

CONSUMER-TO-BUSINESS (C2B) E-COMMERCE

Consumer-to-Business (C2B) e-commerce is a digital commerce model in which individual
consumers or end-users offer products, services, or solutions to businesses. In this unique model,
consumers become the suppliers, and businesses act as buyers. Here’s a detailed explanation of C2B e-
commerce and businesses.
CONSUMER-TO-GOVERNMENT(C2G)E-COMMERCE
Consumer-to-Government (C2G) e-commerce, also known as citizen-to-government e-
commerce, involves individual consumers (citizens) engaging in digital transactions with government
entities. In C2G e-commerce, citizens use online platforms or websites to access government services,
make payments, provide information, and interact with government agencies. Here’s a detailed
explanation of C2G e-commerce:

FEATURES OF ECOMMERCE
Ecommerce sites are constantly evolving in order to deliver a shopping experience that’s better than the
competition. Here are 10 Ecommerce features to attract customers and improve your shopping
experience.
1. Simplicity
A simple Ecommerce design increases conversion rates. Why? Simplicity allows a customer to
feel at ease — and it allows them to find exactly what they need with as little effort as possible.
intuitive designs are craved because they feel natural to us. A customer should enter your website and
immediately understand how to access its features without consciously thinking about it.
2. Mobile and Tablet Friendly
Optimizing your website for smartphones and tablets isn’t an option — it’s a standard. By 2021,
mobile Ecommerce sales are expected to account for 54% of total Ecommerce sales worldwide, and that
number is only expected to grow. Optimizing for mobile doesn’t just mean having your products
available for purchase on phones and tablets. It means having a website design that adapts to the size of
the screen in a way that’s intuitive and friendly.
3. High-Quality Content
Whether it’s a banner image, headshots of your team, or product photos — everything needs to be
in tip-top quality. So what does that look like? Well for starters, every single piece of content needs to
be high-resolution. A blurry photo is just like a misspelled word on your website — if customers see it,
they are going to take you less seriously. Brands should also strive to create their content through
professionals using industry-standard camera equipment. If you have to use stock imagery, make sure
it’s on brand and of the highest quality possible.
However, high-quality content isn’t just about the looks. It should also connect with the customer
and add real value to their lives. Powerful content will spread across the internet naturally, generate
customer loyalty, and deliver a return on your investment. When it comes to product photos, customers
want to see sharp images of your product from every angle. They want to be able to zoom in and assess
details for themselves. They want to see the product being used in different environments.
Some brands leverage customer-generated content of their products, such as photos posted on
Instagram and Facebook. This is a powerful way to showcase your product in various environments, but
it should never replace your professionally-taken product photos.
4. User-Generated Reviews
93% of customers read online reviews before buying a product. In a world where anyone can easily
create a professional Ecommerce website, reviews are one of the only ways a customer can trust a brand
and its products, and be sure that they’re not getting scammed. Some businesses are afraid to include
reviews because they think that one bad review will kill their product. The opposite is actually true.
Every product has at least one bad review from someone. The most important thing is that you are
transparent with your customers.
5. Product Recommendations
Product recommendations use machine learning and predictive intelligence to make sure the
customer is only seeing what they are interested in. This increases the chance of more purchases, and it
leaves the customer feeling like the brand understands them as an individual. Personalized suggestions
are a proven success strategy. For instance, Salesforce customers see a 26% higher AOV with shoppers
who click on their product recommendations, which are powered by Einstein, Salesforce’s AI for CRM
. Magento users have access to a powerful AI as well, called Sensei. Each platform’s artificial
intelligence comes with standard features such as Product Recommendations and Predictive Sort,
Search Recommendations, and Commerce Insights.
6. An Easy-to-Use Checkout
The wrong checkout page can turn droves of customers away from completing their purchases. Here
are a few things your checkout page needs to have: Intuitive design. The checkout page should allow
the customer to complete their purchase with as little thought and effort as possible. Clearly stated
shipping information. Unexpected shipping costs are the number one culprit for cart abandonment
. Remember, transparency goes a long way. Shipping costs should be one of the first things a customer
sees when they begin their checkout process.
7. FAQ Page
A frequently asked question page is a key strategy to ensure that a customer feels confident in their
purchase decision. This tool becomes increasingly important if the product you are selling is complex,
or comes with unique features. If the customer has to contact customer service or leave a comment on
the reviews page with no guarantee of when it will be answered, they are more likely to abandon their
cart. FAQ pages can instantly answer a question in detail, and that can be the push a customer needs to
checkout.
detail, and that can be the push a customer needs to checkout.
8. Multi-level Security
Security measures are perhaps the single most important feature to have on your Ecommerce site
because one single data breach can permanently end your business. If that’s not enough, E-commerce
retailers are notoriously one of the most lucrative targets for hackers.
Luckily, hosted cloud-based platforms like Salesforce Commerce Cloud take an enterprise-level
approach to security, which they fully handle for all of their users. Self-hosted platforms like Magento
let users handle their own security measures as they see fit.
9. Multiple Payment Options
This is another strategy to make a customer’s checkout process simple and hassle-free — which will
inevitably contribute to more purchases. In the time of one-tap and one-click payments, E-Commerce
merchants need to offer as many forms of advanced payment options as possible. The more payment
options you can offer, such as PayPal, Credit Card, Apple Pay, etc, the more of an advantage you will
have. If you can’t offer a specific payment option, be sure to explain to customers why.
10. Wish Lists
Wish lists have proven to be a valuable way for brands to increase sales — especially ones that
 can be shared and followed. Customers don’t buy products they genuinely want for many reasons.
Maybe they want to wait until they get their paycheck, or to see if it goes on sale. Maybe one ran
out of stock and they are simply waiting for the product to return. Regardless of the reason, wish
lists ensure that products a customer is likely to buy aren’t lost or forgotten. They can also
encourage a customer to sign up for an account who might not otherwise. Once they are in, they
may also sign up for marketing emails, etc.

ENVOIRNMENTAL IMPACT OF ECOMMERCE

While e-commerce logistics can lead to increased transportation emissions, it also allows for more
efficient supply chain management and has the potential to reduce the environmental footprint by
optimizing routes and reducing waste.
In summary, the importance of e-commerce lies in its capacity to transform the way businesses
operate, offer unparalleled convenience to consumers, and contribute to economic growth and
innovation. As it continues to evolve, e-commerce will play an increasingly central role in the global
marketplace.

ECOMMERCE WORLDWIDE STATISTICS AND FACTS

Over the last few years, e-commerce has become an indispensable part of global retail. Like many
other industries, buying and selling goods has undergone a substantial transformation following the
advent of the internet, and thanks to the ongoing digitalization of modern life, consumers all over the
world now profit from the perks of online transactions. As global internet access and adoption rapidly
increase, with over five billion internet users worldwide, the number of people making purchases online
is ever-increasing. In 2022, retail e-commerce sales were estimated to exceed 5.7 trillion U.S. dollars
worldwide, and this figure is expected to reach new heights in the coming years.

E-COMMERCE MARKET LEADERS

Internet users can choose from various online platforms to browse, compare, and purchase items or
services they need. While some websites specifically target B2B (business-to-business) clients,
individual consumers are also presented with a vast number of digital possibilities. As of 2022, online
marketplaces account for the largest share of online purchases worldwide. Leading the global ranking of
online retail websites in terms of traffic is Amazon.
The Seattle-based e-commerce giant that offers e-retail, computing services, consumer electronics,
and digital content registered 5.9 billion direct visits to its .com website in April 2023. In terms of gross
merchandise value (GMV), however, Amazon ranks third behind Chinese competitors Taobao and
Tmall. Both platforms are operated by the Alibaba Group, the leading online commerce provider in
Asia.

MOBILE BOOSTS ECOMMERCE TRAFFIC

One of the most visible trends in the world of e-commerce is the unprecedented usage of mobile
devices. In 2023, smartphones accounted for over 70 percent of all retail website visits worldwide, and
in turn, also generated the majority of online orders compared to desktops and tablets. As the adoption
of mobile devices is progressing at a rapid pace, especially in regions that lack other digital
infrastructure, mobile integration will continue to shape the shopping experience of the future. E
-commerce is particularly popular in Asia, with countries like China or South Korea generating over
two-thirds of their total online sales via mobile devices. While online shoppers differ greatly depending
on their respective regions around the world, there are general indicators that help with understanding
basic digital consumer behavior. Leading marketplaces serve as a source of inspiration and the primary
place to research before actual purchase.

M-commerce is a form of e-commerce that enables users to access online shopping platforms
without the use of a desktop computer. Over time, content delivery through wireless devices has
become faster, more secure and scalable. As a result, mobile commerce has grown rapidly. Three types
of mobile M-commerce encompasses three major approaches to mobility and business.
Examples of M-commerce include in-app purchasing; mobile banking virtual marketplace apps, such
as the Amazon mobile app; and digital wallets, such as Apple Pay, Google Pay and Samsung Wallet.
 FIGURE 1(a). (source: search logistics)
This graph shows a gradual yet continuous increase in retail E-Commerce sales worldwide per year. It
was brought out in 2021 which shows the actual figures from 2014 till 2021 and the upcoming years
from 2022 till 2025 were predicted to follow the same pattern as before and as predicted rates in 2022
for 5.717 billion US dollars and by the end of 2023 the global e-commerce market is expected to total
6.3 billion US dollars that figure was estimated to grow over the next years showing that borderless E
-Commerce is becoming a profitable option for online retailers .By 2024, 21.2% of the total retail sales
will happen online.
Apart from which E-Commerce sector in Pakistan has also achieved a significant
growth over past few years but still tanks 46th globally in this field in 2021 with the revenue of us 4.2
billion US dollars according to a researcher at Pakistan institute of development economics.
 E-commerce sales: Top ten economies in 2018

TABLE 1(a). (source:untacd.org)

This table shows top ten countries with the highest economies with their Ecommerce sales, share of total
Ecommerce sales in Gross Domestic Product and business to business Ecommerce sales with it’s share
in total sales along with business to consumer Ecommerce sales

In April 2020 – E-commerce sales hit $25.6 trillion globally in 2018, up 8% from 2017, according
to the latest available estimates released today by the UN’s trade and development body, UNCTAD, at
the start of its UNCTAD E-week event. The online event will explore digital solutions and policies to
help the world recover from the coronavirus crisis. It runs from 27 April to 1 May and features
dialogues among ministers, heads of international organizations, business executives and civil society
representatives.
According to the UNCTAD analysis, the estimated 2018 e-commerce sales value, which includes
business-to-business (B2B) and business-to-consumer (B2C) sales, was equivalent to 30% of global
gross domestic product (GDP) that year.
 “The coronavirus crisis has accelerated the uptake of digital solutions, tools and services, but the
overall impact on the value of e-commerce in 2020 is still hard to predict,” said Shamika Sirimanne,
UNCTAD’s director of technology and logistics. The 2017 value of global e-commerce was estimated
at $23.8 trillion, based on a revised methodology. The value of global B2B e-commerce in 2018 was
$21 trillion, representing 83% of all e-commerce, comprising both sales on online market platforms and
electronic data interchange transactions. B2C e-commerce was valued at $4.4 trillion, up by 16% from
2017. Cross-border B2C e-commerce sales amounted to $404 billion in 2018, representing an increase
of 7% over 2017. The United States continued to dominate the overall e-commerce market (Table 1). It
remained among the top three countries by B2C e-commerce sales, alongside China and the United
Kingdom.
The leading B2C e-commerce companies are based mostly in China and the United States. The
world’s top 10 B2C companies in 2018 generated almost $2 trillion in gross merchandise value (GMV),
according to the report. Alibaba (China) was far ahead with a GMV of $866 billion in 2018, followed
by Amazon (United States) with $277 billion. However, in terms of revenue, JD.com (China) and
Amazon were ahead of Alibaba. Developing and transition economies accounted for about half of the
top 20 economies by B2C e-commerce sales. In relation to GDP, B2C e-commerce in these economies
was the largest in Hong Kong (China), China and the United Kingdom, and smallest in India, Brazil and
Russia.
Among the top 20 economies, the extent to which Internet users engage in online purchases varies
considerably. For example, in 2018, 87% of Internet users in the United Kingdom shopped online,
compared with only 14% in Thailand and 11% in India. More than 1.4 billion people shopped online
and more bought from abroad UNCTAD estimates that 1.45 billion people, or one quarter of the world’s
population aged 15 and older, made purchases online in 2018 (Figure 1). This is 9% higher than in 2017.
China had the largest number of online shoppers at 610 million, according to the report. While the
bulk of online shoppers mainly bought from domestic suppliers, some 330 million online shoppers
made cross-border purchases in 2018 — a little more than one in five of all online shoppers. The
interest in buying from foreign suppliers continued to expand. The share of cross-border online shoppers
to all online shoppers rose from 17% in 2016 to 23% in 2018.
 SOME KEY ECCOMMERCE STATISTICS

CHART 1(a). (source:financeonline)

Mobile Ecommerce Statistics
Smartphones are becoming more versatile, and they are shaking up industries that go beyond
communication device manufacturing—and ecommerce is not an exception. The increasing mobile
phone usage has had a massive impact on the growth of ecommerce as it allows consumers to make
purchases wherever they may be instantly. In addition to this, with plenty of downtime being spent on
mobile browsing, businesses are able to reach their target markets as effortlessly as possible.

E-COMMERCE IN PAKISTAN

History: The E-commerce in Pakistan was started around two decades ago with a ban of
 the PayPal service in the country. The ecommerce companies and the merchants of

this field had to rely on the cash on delivery as well as the bank payment methods.

However, the need for the alternative of PayPal was fulfilled to an extent by the launch of

the mobile payment systems the country.

SITUATION: According to the Ministry of Commerce, E-commerce market size of

Pakistan has recently posted up a growth of about 35 per cent in only the first quarter of

this fiscal year of 2021 that is to Rs. 96 billion as compared to the value of Rs.71bn that

was in a period of the last year.

Pakistan is a country where starting a small business is not so difficult and

nowadays many people are doing it, some are doing business of clothing, home

-made food, selling kitchen goods, or many other things online. They have created

their websites and social media accounts where the selling and purchasing of goods

is successfully done.

Pakistan is a developing country where the technology is increasing on a fast

pace. The Federal Board of Revenue also conducted a meeting recently where the FBR

informed about the legal framework and updates including the Ecommerce rules and

terms regarding its mechanism of import goods clearance, as well as the return of goods

policy along with WeBOCs’ e-commerce module.

The National Taxation Council is also working on agreement of taxation regime

almost in all the provinces of the country and federation. However, the State Bank of

Pakistan also gave presented a presentation on its efforts on promoting the cross-
border e-commerce in which its pros and cons were also included.

The development of the sector of e-commerce in the entire world has now made it

possible for economic development. Globally E-commerce has grown enormously in

the past two decades with a growth rate of sales standing on 13% that equates to the

sales that also worth an estimated value of $2.9 trillion. However, these figures are

expected to grow up to $4.5 trillion by this current fiscal year of 2021.

Online shopping is expanding and so does the ecommerce platforms. There are

several studies that confirm about 18% of all the online retail of sales in Pakistan that

took place in previous years

OVERVIEW OF THE BIGGEST E-COMMERCE PLATFORMS IN PAKISTAN

TABLE 1(b)

source: Data darbar SEm rush Company Data

In late November, a preview was released on the O-N-D impact prevailing in the

local e-commerce space. But given the dearth of information on the sector, we
expanded its scope to prepare a comprehensive snapshot on the state of B2C e

-commerce in Pakistan.

Pakistan’s B2C e-commerce market for 2023 is expected to be $6.4B, according to

Ecommerce DB, a leading data platform. Category-wise, electronics and media accounts

for the largest share at 34.1%, with furniture and appliances following suit at 28.8%.

Our e-commerce-to-GDP ratio of 1.63% lies at the bottom end of the peer group,

which includes Indonesia, Philippines, Egypt, and Bangladesh.

The report then delves into the digitally paid e-commerce orders, as reported by the

State Bank. This section analyzes the trend in throughput, volume, growth in registered

merchants, and average order value among other things. Get your hands on the copy by

filling this form.

The major e-commerce was categorized by whether they are digitally native or have

offline presence as well. That’s because click-and-mortar stores — as we refer to them

— account for a significant share of the market volumes thanks to the presence of retail

giants. In this category, J. led the charts with traffic of 10M and an estimated global

revenue of $71.8M in 2022. On the digitally native players — simply termed as e

-commerce stores — Daraz was naturally the leader, with a massive 112M in annual

traffic during 2022. PriceOye was a distant second at 14.7M, as per SEMrush data.

[Since the report evolved from measuring the O-N-D impact, Food & Groceries and

Health were not analyzed.}

To get a better view, the e-commerce fulfilment space was also viewed from a third
-party logistics perspective. Here, PostEx comes on top with an estimated average

monthly shipments of 1.45M. Founded in 2020, the startup has raised $8.6M, and

recently acquired one of the leading players, Call Courier.

The report also explores the seasonality in the e-commerce, which has traditionally seen

higher sales in November specifically and the last quarter generally. This impact was

quantified for all major stores and found it prevalent in four of the seven e-commerce

and all of the click-and-mortar stores. To enable a better comparison, we briefly

analyzed the trend in other emerging markets as well.

FIGURE 1(b) source:usmani&co)

In a country like Pakistan, with a population around 200million, only 41 million people have

access to internet, where only 5 million people shop online catered by 2000 e-retailers. When compared

globally the market size and figures are relatively small, however with increasing potential. In terms of

Business to Business (B2B) e-Commerce the software industry is making smooth progress. With the
size of approximately $530 million it aims to achieve a target of $ 5 billion by 2020.

Nevertheless with the fourth industrial revolution Pakistan is making every effort in order to

compete globally, there are still many barriers that need to be removed. Consumer/seller protection

for e-Commerce transactions in terms of quality and reliability of products as well as payments has to

be ascertained. It is also prerequisite to provide low cost secure internet service across the country to

increase the internet shoppers and business opportunities. The overall infrastructure for e-Commerce

has to be established and made reliable up to the satisfaction of users and international standards.

OPPORTUNITIES IN PAKISTAN

Ecommerce policy needs to be followed by every ecommerce platform in Pakistan.

However, many people can do Ecommerce business and are still doing it for their

earning. The opportunity is open for all because the online social media sites are usually

free and through that you can sell any of your product or service in which one have

expertise or can provide what you offer.

In Pakistan there should be an enabling environment in order to provide ecommerce

growth to the higher level. A huge opportunity of ecommerce is for youth and especially

female entrepreneurs who wanted to do their online business from home. These

platforms also created jobs for many where the whole supply chain is set from raw

material, manufacturing to taking online orders and delivering to the customers It is

perhaps a great opportunity to enter in the ecommerce market if one is willing to do

your own business. Many of the existing retails have also shifted or expanded their

business by selling their products and services online along with the physical selling,
especially brands. Daraz.pk, Shoppingum.com, Zameen.com and OLX are also among

the top E-commerce platforms where anyone can add their product even property to

sell and many of the customers are there to negotiate or to purchase the products on

the price demanded.

Opportunity for everyone to start their own business from home (especially women).

Expand the global reach. No time limit because online shopping platforms are usually

24/7 open for shopping online; however, the physical retail stores have a limitation of

timing.

Fuel cost is also saved but your order is just a click away where you can simply order

online while sitting at your home and can save the traveling cost that is in utilize in for

the fuel, online discount offers, security and data protection of data, no necessarily

need of physical store or warehouse, many open choices to set up the business

independence of setting location for customer and seller, no cash handling required as

you can pay online in electronic form, it creates more employment opportunities.

BENEFITS OF THE ECOMMERCE

There’s no doubting it – the opportunity of selling online has helped several businesses earn more and

grow successfully. Like any other business strategy, there are many plus points and the benefits of

ecommerce can help one to excel.

1. FASTER BUYING PROCESS

Customers can spend less time shopping for what they want. They can easily browse through many
items at a time and buy what they like. When online, customers can find items that are available in

physical stores far away from them or not found in their locality.

2. STORE AND PRODUCT LISTING CREATION

A product listing is what the customer sees when they search for an item. This is one advantage

in ecommerce meant for the seller. This online business plus point is that one can personalize product

listing after creating them. Sellers can add many images, a description, product category, price, shipping

fee and delivery date. So, in just one step one can tell the customer many things about the item.Creating

listing shows the buyers what one have.

3. COST REDUCTION

One of the biggest advantages of ecommerce to business that keep sellers interested in online

selling is cost reduction. Many sellers have to pay lots to maintain their physical store. They may need to

pay extra up front costs like rent, repairs, store design, inventory etc. In many cases, even after investing

in services, stock, maintenance and workforce, sellers don’t receive desired profits and ROI. This is also

a good opportunity for individual and small scale sellers who want to earn an income but don’t have the

required start-up capital.

4. AFFORDABLE ADVERTISING AND MARKETING

Sellers don’t have to spend a lot of money to promote their items. The world of ecommerce has

several affordable, quick ways to market online. Ecommerce marketplaces are visual channels – and

sellers can really show off their product. For example, Amazon sellers can use Advertising tools to add

videos, infographics, good quality resolution images.

5. FLEXIBILITY FOR CUSTOMERS

An important advantage of ecommerce to business is that sellers can provide flexibility to

customers. One highlight is that the product and services are ready 24x7. The result is that seller can

offer his item any place, any time. Customers are always present on an ecommerce marketplace – They

are likely to return for repeat purchases

online because of the conveniences they get. These conveniences include free shipping (usually on a

minimum cart value), express order delivery, deals and discounts, subscription advantages. They also

share reviews on the things they buy. Good reviews result in two extra benefits of ecommerce. One is

that buyers gain trust in your store based on the number of positive reviews. The other is that it can help

one identifies his best-selling items.

6. PRODUCT AND PRICE COMPARISON

In ecommerce, sellers can compare the products using tools or on their own. This gives them a

good idea of product alternatives available, the standard rates, if a product need is unfulfilled.

Comparison is faster online and covers many products – It helps to save time when making this

comparison, as all details are available on the shopping site. In a physical store, sellers may not be able

get access to so many details –they only have better knowledge about their own inventory.

7. NO REACH LIMITATIONS

A seller with a physical store may only be able to reach a certain number of buyers. They can

deliver to the customers’ homes but there can be distance limitations. Several e-commerce marketplaces

have their own logistics and delivery system.

8. FASTER RESPONSE TO BUYER/MARKET DEMANDS

Every interaction is faster when you begin selling online. Ecommerce marketplaces offer you a

streamlined logistics or delivery system. What this means is that the buyers order gets delivered

efficiently. Product returns management is one more plus point that can be handled quickly – you either
refund the payments or give a replacement. Speedily actions can even be applied when responding to

market demands. For example – when a buyer sees that an item is out of stock, he can click on the

‘Notify Me’ option. This informs him when that item is available for sale again. It also informs sellers

that they need to restock that item so they can get more buyers.

9. SEVERAL PAYMENT MODES

Buyers like personalization – the same goes for paying for their orders. Ecommerce marketplaces

permit multiple payment modes that include UPI, cash on delivery, card on delivery, net banking, EMIs

on credit or debit card and pay-later credit facility.

10. CART RECOVERY

This is one huge benefit or ecommerce. Sometimes a buyer reaches the checkout page but doesn’t

complete the purchase. Here, one can notify customers via phone messages, email to finish buying.

11. ENABLES EASY EXPORTS

E-commerce exports assists sellers to directly sell to international customers in global

marketplaces, allowing them to transcend beyond national boundaries and expand abroad. With e-

commerce, sellers don’t have to invest in a physical setup to reach customers. Instead, they can use

attractive product listing and acquire new customers internationally with ease. For aspiring

entrepreneurs and growing businesses, e-commerce exports can be a very profitable model to adapt for

global expansion and increased revenue. Thanks to e-commerce, building an affordable website and

selling products online, driving traffic to your e-commerce store to reach a larger audience, and much

more which makes it more attractive than offline business

CHALLENGES OF ECOMMERCE

There are advantages and disadvantages of a business using e-commerce, so it’s important to know
about the potential drawbacks as well. Running an e-commerce website can be particularly challenging

for people who aren’t familiar with computers and technology. Here’s what you need to know about

the potential downsides of e-commerce.

1. POTENTIAL SECURITY THREATS

There’s always the potential for security threats. Poor website security can allow unauthorized

users to gain access to your website and look at sensitive data. In rare cases, issues with payment

processors may lead to data breaches that put customers’ credit and debit card information at risk. A

big part of learning how to build e-commerce websites is learning how to make sure that website is

secure, which is why some business owners prefer to hire a professional.

2. COMPETITION

There’s a lot of competition in the world of e-commerce because it’s so easy for anybody to create

an online store. This is one of the biggest e-commerce disadvantages because it means one have to

work extra hard to make sure you’re promoting your store and driving traffic to your website. Certain

niches are also very crowded, so you may have a tough time selling your product depending on the

industry and products. Ultimately, the success of your store is determined by how hard you work to

build your online presence.

3. IT ISSUES
There are no tech issues that can keep you from accepting cash at a physical store, but IT

issues can be a big problem for e-commerce websites. If the website suddenly crashes or having a

problem with payment processor, that downtime could potentially cost money and customers. What’s

even worse is that fixing these IT issues, simple can help you avoid some of the potential IT issues that

come with e-commerce, but tech problems are something to be aware of.

4. SHIPPING LOGISTICS
 Running a physical storefront is simple because all one have to do is sell products to customers

when they come in to shop. If he want to sell products over the phone or through a catalog, he can use

a simple shipping service to send out a few packages each week. With an e-commerce store, One have

to figure out all of the shipping logistics because every purchase will have to be shipped. It can be

difficult to figure out a seamless shipping solution for business, and not to end up in the red due to

high shipping costs.

5. LIMITED CONNECTION WITH CUSTOMERS

One don’t get a chance to connect with customers on a personal level when he’s running an e

commerce store. Some people may prefer that, but he can’t offer the same personal touch when he

make a sale online.

SECURITY MEASURES FOR ECOMMERCE

Ecommerce security is a set of guidelines that ensures safe online transactions. Just like physical

stores invest in security guards or cameras to prevent theft, online stores need to defend against

cyberattacks. According to the 2020 Trustwave Global Security Report, the retail industry was the

most-targeted sector for cyberattacks.

In order to adequately protect your company from attack, you first need to know four key terms

that are essential to understanding ecommerce security protocols.

1.PRIVACY

In the context of ecommerce security, privacy involves preventing unauthorized internal and

external threats from accessing customer data. Disrupting customer privacy is considered a breach of
confidentiality and could have devastating consequences for your customers’ privacy and reputation as

a retailer. Privacy measures include antivirus software, firewalls, encryption, and other data protection

measures.

2.INTEGRITY

Integrity refers to how accurate a company’s customer data is. Maintaining a clean, curated

customer dataset is critical to running a successful ecommerce business. Using incorrect customer’s

data — such as their phone number, address, or purchase history — causes people to lose confidence

in your ability to protect their data and in your company as a whole.

3.AUTHENTICATION

Authentication proves that business does what it claims and that customers are who they say they

are. The site should have at least some proof that it sells what it says it does and delivers those goods

according to expectations. Using customer quotes throughout your website and publishing case

studies are two strategies for adding to your business’s credibility. Customers should also be required

to verify their identities before processing their online transactions. Requiring two-factor

authentication or using magic links to log customers into their accounts are examples of customer

authentication.

4.NON-REPUDIATION

Non-repudiation means neither a company nor a customer can deny transactions they’ve

participated in. Non-repudiation is somewhat implicit in physical stores but pertains to online

purchases as well. Non-repudiation measures like digital signatures ensure that neither party can deny

a purchase after it has been made.

FUTURE OF ECOMMERCE

The future of e-commerce is poised to be dynamic and transformative, shaped by emerging

technologies, changing consumer behaviors, and evolving business strategies. Here are some key

trends and insights into what the future holds for e-commerce:

**Continued Growth:** E-commerce is expected to continue its growth trajectory. While some regions

are more mature markets, others, especially in developing countries, offer substantial untapped

potential.

**MOBILE COMMERCE (M-COMMERCE) : With the increasing adoption of smartphones and faster

mobile internet, M-commerce will thrive. E-commerce businesses will need to prioritize mobile-

friendly platforms and user experiences.

**AI AND PERSONALIZATION: Artificial intelligence (AI) will play a pivotal role in enhancing

customer experiences through personalized recommendations, Chabots for customer support, and

predictive analytics for inventory management.

**AUGMENTED REALITY (AR) AND VIRTUAL REALITY (VR): AR and VR technologies will

enable virtual try-on experiences for fashion and accessories, as well as immersive shopping in

environments, particularly in the home décor and furniture sectors.

**VOICE COMMERCE: The use of voice-activated assistants like Amazon’s Alexa and Google
Assistant

will become more prominent for product searches and purchases.

**SUSTAINABILITY: Eco-conscious consumers will drive demand for sustainable and eco-friendly

products. E-commerce businesses will need to adopt sustainable practices in sourcing, packaging, and

shipping.

**FASTER AND SUSTAINABLE SHIPPING: There will be a focus on reducing delivery times,
including same-day and even within-hour deliveries, as well as optimizing supply chains for

sustainability.

**CROSS-BORDER E-COMMERCE: Cross-border trade will continue to grow as e-commerce

businesses seek to expand their global reach. Improvements in logistics and payment solutions will

facilitate this trend.

**BLOCKCHAIN TECHNOLOGY : It will be used to enhance transparency and security in supply

chain management, product authenticity, and payment processing.

**SOCIAL COMMERCE: Social media platforms will further integrate shopping features, allowing

users to make purchases directly from their social feeds.

**SUBSCRIPTION E-COMMERCE: Subscription-based models will expand into new product

categories, offering everything from personalized fashion to niche hobbyist products.

**HEALTH AND WELLNESS: The health and wellness sector within e-commerce, including vitamins,

supplements, and fitness equipment, is expected to see continued growth, driven by changing

consumer lifestyles.

**DATA PRIVACY AND SECURITY: With increased scrutiny on data privacy, e-commerce businesses
will

need to prioritize robust cybersecurity measures and comply with evolving regulations.

**OMNICHANNEL RETAIL: Integrating online and offline shopping experiences will be crucial.

Retailers will continue to experiment with pop-up stores and showroom-style shopping spaces.

**EMERGING MARKETS: E-commerce will expand rapidly in emerging markets, offering new

opportunities for businesses to reach a growing middle class with increased purchasing power.

**VOICE OF THE CUSTOMER: Gathering and analyzing customer feedback and reviews will be a

cornerstone of e-commerce success, influencing product development and marketing strategies.

**POST-PANDEMIC ADAPTATION: E-commerce will evolve as businesses adapt to the post-

pandemic landscape, incorporating lessons learned about remote work, supply chain resilience, and

shifting consumer behaviors. The future of e-commerce is marked by innovation, adaptability, and an

increasing focus on meeting customer expectations. E-commerce businesses that embrace emerging

technologies, sustainability, and customer-centric strategies will be well-positioned to thrive in this

evolving landscape.

BRIEF SUMMARY

This comprehensive research paper provides a detailed exploration of the multifaceted world of e-

commerce. It begins with an introduction to the definition of e-commerce and traces its historical

evolution. The study highlights the pivotal role e-commerce plays globally and then zooms in on its

specific impact in Pakistan, emphasizing its growing importance in the country’s business landscape.

The report dives into the challenges that the Pakistani e-commerce sector faces, ranging from

logistical hurdles to regulatory complexities. It offers thoughtful solutions and strategies to address

these issues, promoting the sustainable growth of e-commerce in Pakistan. Factors influencing the e-

commerce sector are thoroughly examined, from technological advancements to changing consumer

behaviors.

Throughout the paper, the significance of e-commerce is underscored, focusing on its benefits such

as accessibility, cost-efficiency, and convenience. However, it also acknowledges the challenges,

including security concerns and fierce competition in the online marketplace.

Looking forward, the research paper delves into the future of e-commerce, discussing emerging

trends and innovations. It outlines key features of successful e-commerce ventures and provides a

step-by-step guide for setting up an online business. Moreover, the paper addresses the critical issue of
security in e-commerce transactions and explores various types of e-commerce models.

In summary, this research paper serves as a comprehensive guide to understanding, analyzing, and

navigating the intricate world of e-commerce. It sheds light on the challenges and opportunities within

the Pakistani e-commerce landscape while offering valuable insights into the present and future of this

ever-evolving industry.

CONCLUSION

E-Commerce has undeniably become an important part of our society. The successful companies of

the future will be those that take E-Commerce seriously, dedicating sufficient resources to its

development. E-Commerce is not an IT issue but a whole business undertaking. Companies that use it

as a reason for completely re-designing their business processes are likely to reap the greatest

benefits. Moreover, E-Commerce is a helpful technology that gives the consumer access to business

and companies all over the world.

In general, today’s businesses must always strive to create the next best thing that consumers will

want because consumers continue to desire their products, services etc. to continuously be better,

faster, and cheaper. In this world of new technology, businesses need to accommodate to the new

types of consumer needs and trends because it will prove to be vital to their business’ success and

survival. E-commerce is continuously progressing and is becoming more and more important to

businesses as technology continues to advance and is something that should be taken advantage of

and implemented.

From the inception of the Internet and e-commerce, the possibilities have become endless for

both businesses and consumers. Creating more opportunities for profit and advancements for
businesses, while creating more options for consumers. However, just like anything else, e-commerce

has its disadvantages including consumer uncertainties, but nothing that can not be resolved or

avoided by good decision-making and business practices.

There are several factors and variables that need to be considered and decided upon when starting

an e-commerce business. Some of these include: types of e-commerce, marketing strategies, and

countless more. If the correct methods and practices are followed, a business will prosper in an e-

commerce setting with much success and profitability.

RECOMMENDATIONS
E-commerce has the potential for significant growth, contributing significantly to
the country’s economy. However, addressing challenges is necessary to realize its
potential. Establishing trust among consumers, improving digital infrastructure, creating
a reliable logistics system, increasing digital literacy, and providing regulatory support
are essential steps towards creating an environment that supports e-commerce growth.
As Pakistanis, it is the responsibility of the citizens to focus on this sector and take
necessary steps towards increasing its scale for the benefit of our country and people.
As well as it is required that government should accelerate the digital payment
gateways. A digital chamber of commerce, better human capital and intellectual property
protection are other measures which can be helpful in promoting e-commerce in
Pakistan.
.

APPENDIX
Merits & De-Merits Of Types Of Ecommerce
1. B2B Ecommerce
The advantages of B2B e-commerce include:
Convenience: While companies can sell through physical storefronts or take transactions by phone, B2B
commerce often takes place online, where companies advertise their products and services, allow for
demonstrations and make it easy to place bulk orders. Sellers also benefit from efficient order processing
thanks to this digital transaction model.
Higher profits: B2B companies often sell their items in wholesale quantities, allowing buyers to receive
a good deal and restock less often. Larger order numbers lead to higher potential sales and additional
profits for B2B sellers. At the same time, the ease of advertising to other businesses through B2B
websites can help cut marketing costs and boost conversion rates.
The disadvantages of B2B e-commerce include:
More complex setup process: Getting started as a B2B retailer takes work to figure out how to get
customers who stay dedicated and make large-enough orders. This often requires thorough research to
advertise to potential businesses, set up a custom ordering system and adapt quickly when sales are
underwhelming;
Limits to sales: While B2B companies can sell a lot, they do miss out on potential sales to individual
customers. The smaller pool of business buyers and the need to negotiate contracts can put some limits
on profits, especially when the company loses key buyers to other competitors.

2. B2C Ecommerce
The advantages of B2C e-commerce include:
Unlimited marketplace: The marketplace is unlimited, enabling the customers to explore and shop at
their convenience. We can check on the desired product from home, offices and anywhere else without
any time restrictions. Products can be purchased from around the world. It represents the breaking of
international barriers, giving people the opportunity to purchase products virtually;
Lower costs of doing business: B2C has reduced several business components including employees,
purchasing cost, mailing confirmations, phone calls, data entry and the requirement for opening stores
with physical existence. This has reduced transaction costs for customers;
The disadvantages of B2C e-commerce include:[7]
Infrastructure: Even though the internet enables reaching a huge, international pool of customers,
many still do not have access to the internet;
Competition: Competition is severe. There are certain companies that have managed to maintain
sizeable market shares giving them a chance to survive in the long run. New and improved products
must be rolled out consistently to secure customers.

3. C2B Ecommerce
The advantage of this website is that the owner does not have to sell mortgages, meet with customers,
or pay for everyday business operation expenses in order to make money. If the Lending Tree
advertisement is used by a visitor, the website owner gets paid a commission from Lending Tree for the
lead.
The disadvantages of C2B transactions are that one must be well-versed in web design to create such a
website and the amount of money earned is far less than what could be earned by selling the mortgage
directly to the consumer instead.[9] The advantages of C2B can be expressed through an example: The
C2B website thefreemortgagecalculator.com offers a Lending Tree advertisement at the top of the page.

4. C2C Ecommerce
The advantages of C2C include:
Availability: It is always available so consumers can shop on demand;
Websites are updated regularly.
Higher profitability: Consumers selling products directly to other consumers can achieve higher
profits;
Low transaction cost: Selling via online platforms is much cheaper than the costs incurred on having
physical store space;
The disadvantages of C2C include:[citation needed]
Security issues: There could be theft due to scammers falsely impersonating well known C2C sites and
lack of quality control of products

5. B2G Ecommerce
The advantages of this type includes:
Efficiency: B2G e-commerce streamlines procurement processes, reducing administrative overhead,
paperwork, and manual tasks.
Transparency: It enhances transparency and accountability in government procurement, as all stages of
the procurement process can be documented electronically.
The disadvantages of this type includes:
Complex Regulations: Government procurement often involves complex regulations, and businesses
must ensure they comply with all legal requirements.
Data Security: Protecting sensitive procurement and supplier data is paramount to maintain trust in
B2G e-commerce systems.

6. C2G Ecommerce
The advantages of this type includes;
Convenience: C2G e-commerce provides citizens with convenient access to government services and
information from the comfort of their homes.
Time and Cost Savings: Digital transactions save time and reduce costs related to travel and paperwork
for both citizens and government agencies.
The disadvantages of this type includes:
Digital Divide: Not all citizens may have equal access to the internet or digital devices, potentially
excluding some segments of the population from C2G services.
Cybersecurity: Safeguarding citizen data and government systems from cyber threats is a top priority.

BIBLIOGRAPHY

Help from the internet following website links have been used:
• www.statista.com
•unctad.org
•financeonline.com
•startuppakistan.com.pk
•www.usmaniaco.com
•Search logistics by Matthew Woodword
 GLOSSARY

TERM DEFINITION

EDI. Electronic Data Interchange

SEO. Search Engine Optimization
Pandemic. Worldwide spread of a disease
Revolution. A forceful throw of a government or social order in favour of a new
system
Fiscal year. 12 Months accounting period a business uses for financial and tax
Reporting purpose