How to start an e-commerce business in Pakistan

The global e-commerce landscape is evolving rapidly, and Pakistan is emerging as a key market for businesses seeking to expand their footprint in South Asia. According to ECDB, Pakistan’s e-commerce sector is projected to grow at a compound annual growth rate (CAGR) of 14.0% between 2024 and 2028¹, with an expected market volume of US$5.5 billion by 2028. This remarkable growth, driven by a young and increasingly connected population, presents a unique opportunity for Hong Kong-based businesses to tap into a thriving and diverse consumer base.

While Hong Kong and Pakistan do not currently have a formal free trade agreement, their strong trading relationship highlights significant potential for collaboration. In a report released by OEC, Hong Kong exported $67.9 million worth of goods to Pakistan² in 2022, including telephones, scrap iron, and sulfonamides. These trade dynamics, combined with Pakistan’s expanding e-commerce sector, create promising avenues for businesses to diversify their operations and reach new customers.

This guide explores the essentials of entering Pakistan’s e-commerce market, from understanding consumer preferences to navigating logistics challenges. With the support of DHL Express HK’s reliable and efficient logistics solutions, Hong Kong businesses can position themselves for success in this dynamic and growing market.

Understanding the Pakistani consumer

Pakistani consumers are embracing online shopping at an accelerating pace, driven by increasing internet penetration and the convenience, variety, and value offered by e-commerce platforms. Electronics leads the e-commerce market, contributing 23.9% of total revenue, followed by hobby and leisure (21.7%), fashion (18.9%), and furniture and homeware (12.1%)¹, according to ECDB. These figures underscore the need for businesses to tailor their product offerings to align with local demand and capitalise on these key categories.

Cultural nuances and sensitivities

Beyond numbers, understanding the cultural fabric of Pakistan is essential for success. As a collectivist society³, family and community values significantly influence purchasing behavior. Products that promote togetherness or serve practical purposes for families resonate strongly with consumers. Seasonal and religious events, such as Ramadan and Eid, further shape demand patterns, driving spikes in categories like clothing, gifts, and festive essentials. 

Payment methods in Pakistan

Complementing these cultural and behavioral trends is an evolving payment landscape. While cash on delivery (COD) remains the preferred choice for its simplicity and trust, digital payment methods are rapidly gaining traction. Solutions such as JazzCash, EasyPaisa, and PayPak⁴, alongside innovative options like Buy Now, Pay Later (BNPL), are increasingly popular among younger, tech-savvy audiences. Additionally, systems like the government-backed RAAST payment network provide a seamless, secure alternative for transactions, further diversifying the payment ecosystem.

Top online shopping platforms in Pakistan

To successfully enter Pakistan’s e-commerce market, selecting the right platform is crucial. Each marketplace caters to different customer needs, making it essential to align your business goals with the platform’s strengths. Below are some of the leading e-commerce platforms in Pakistan:

• Shopify: Ideal for entrepreneurs and small to medium-sized businesses seeking customizable storefronts. Its support for PKR and Urdu enhances accessibility for Pakistani consumers.
• Daraz.pk: The largest marketplace for sellers aiming to reach a broad audience quickly, with added logistics and payment gateway support.
• OLX.com.pk: A go-to platform for individuals or small businesses selling secondhand goods or services with free ad listings and location-based searches.
• Shopon.pk: Perfect for consumers seeking deals on electronics and fashion, with affordable pricing and gift card options.
• Lootlo.pk: Offers a vast product range and discounted prices, catering to budget-conscious shoppers.
• Goto.com.pk: Known for its authenticity and customer satisfaction, Goto spans multiple categories, including electronics, fashion, and home items.
• Telemart.pk: Focused on electronics, Telemart provides loyalty programs, competitive pricing, and a wide range of products.
• PriceOye.pk: Best for price-conscious tech buyers, offering price comparison tools for electronics and gadgets.
• Pk.khaadi.com: A top choice for fashion lovers, showcasing trendy clothing and accessories from the popular Khaadi brand.
• Shophive.com: Established as Pakistan’s first registered e-commerce platform, Shophive specializes in electronics and home appliances.

These platforms provide diverse opportunities to match your products with the right audience, ensuring your business resonates with Pakistan’s growing online shopper base.

How to choose the best e-commerce platform for your business

With a variety of online shopping platforms available in Pakistan, each catering to specific needs and customer bases, the key is to find the one that aligns with your business goals. Whether you’re targeting broad audiences through platforms like Daraz or focusing on niche markets like PriceOye or Khaadi, choosing the right platform can significantly impact your success.

Here’s how to determine the best platform for your business:

1. Target audience: Identify where your customers are most active. Platforms like Daraz and OLX offer broad reach, while Shopify provides a tailored, branded experience.
2. Product type: Align your products with platform specialties. For instance, PriceOye is ideal for electronics, while Khaadi is suited for fashion.
3. Logistics support: Choose platforms that provide built-in logistics or integrate with services like DHL Express HK for reliable delivery and customs support.
4. Costs and fees: Evaluate platform fees, subscription models, and transaction costs to ensure profitability.
5. Payment options: Opt for platforms offering diverse payment methods, including cash on delivery and digital wallets, to cater to Pakistani preferences.

Marketing and reaching Pakistani customers

Once you’ve chosen the right platform for your e-commerce business, the next step is crafting a marketing strategy that resonates with Pakistani consumers. Reaching this audience goes beyond selecting the right marketplace — it requires a deep understanding of their online behavior, cultural values, and the moments that matter most to them. From leveraging social media to aligning campaigns with key cultural events, here’s are some ways you can connect with this dynamic market effectively:

1. Social media marketing and influencer collaborations

Social media plays a pivotal role in Pakistan’s digital landscape, with platforms like Facebook and Instagram leading the way. Brands can utilize targeted advertising on these platforms to reach specific demographics based on location, age, and interests. Visual storytelling, engaging posts, and community-building initiatives can drive meaningful engagement. Highlighting trending products in Pakistan, such as electronics, fashion items, and beauty products, can further enhance visibility and attract a broader audience.

Collaborating with influencers is another powerful strategy. Influencers, particularly on Instagram and YouTube, command significant trust and credibility among their followers. Partnering with local influencers who align with your brand values can amplify reach and foster authentic connections with Pakistani consumers.

2. Online advertising strategies

Online advertising in Pakistan often centers around video content and mobile-optimized campaigns, given the high penetration of smartphones. Google Ads and Facebook Ads allow businesses to create cost-effective campaigns that generate significant visibility. Promotional offers, flash sales, and discounts advertised through digital banners or short video ads can encourage immediate action from shoppers.

3. Key marketing dates and opportunities

Timing your campaigns around significant cultural, religious, and national events is crucial in Pakistan. Here are some key dates to incorporate into your marketing calendar:

• Eid al-Fitr and Eid al-Adha: These religious holidays are major shopping seasons, with increased demand for clothing, gifts, and festive items.
• Basant: This spring festival, celebrated with kite flying and vibrant festivities, provides opportunities for lifestyle and leisure product promotions.
• Independence Day (August 14th): A national holiday that sees heightened patriotism and interest in themed products, from apparel to decorations.

Logistics and shipping to Pakistan

Efficient logistics are vital for ensuring a seamless entry into Pakistan’s e-commerce market. Choosing the right shipping solutions, navigating customs clearance, and adhering to packaging standards can significantly impact the success of your operations.

1. Choosing the right shipping method

The choice of shipping method depends on factors such as cost, speed, and the type of goods being transported.

• Air freight: Ideal for high-value or time-sensitive shipments, air freight offers fast and reliable delivery through Pakistan’s major airports.
• Sea freight: A cost-effective solution for bulk shipments, sea freight is best suited for goods that are less time-sensitive. Karachi Port serves as a primary gateway for maritime shipments.
• Overland transport: While viable for certain shipments, overland transport via the Karakoram Highway may face delays due to challenging terrain and border crossings.

Selecting the appropriate method involves weighing costs, transit times, and the volume and nature of the goods being shipped.

2. Navigating customs clearance and documentation

Customs clearance in Pakistan requires thorough preparation and accurate documentation to avoid delays. Essential documents include:

• Commercial invoice: Details the goods, their value, and terms of sale.
• Packing list: Describes the contents of each package, including quantities and weights.
• Bill of lading: Acknowledges receipt of goods and serves as a contract of carriage.
• Certificate of origin: Confirms the origin of goods, which may be needed for preferential tariff treatment.

Understanding Pakistan’s customs duties, sales taxes, and withholding taxes is crucial for calculating total costs. Collaborating with a knowledgeable customs broker can streamline the process and ensure compliance.

3. Compliance with regulations

Be aware of Pakistan’s customs rules and regulations regarding prohibited or restricted items, which include narcotics, weapons, counterfeit goods, and specific agricultural products. For food, cosmetics, and other products requiring Halal certification, compliance with guidelines set by the Pakistan Halal Authority (PHA) is essential. Proper certification ensures smooth customs clearance and aligns with local cultural norms.

4. Packaging and labeling for safe transit

Secure packaging and accurate labeling are critical to protecting goods and facilitating customs clearance.

• Packaging: Use durable and sustainable packaging that’s suitable for the fragility and weight of the items.
• Labeling: Clearly include consignee and shipper details, Harmonized System (HS) codes, country of origin, and package numbers.

Supporting your logistics with DHL Express HK

DHL Express HK simplifies international shipping to Pakistan with comprehensive logistics solutions, including time-definite services and customs expertise. Our reliable network ensures fast and secure delivery, while our team navigates complex documentation and regulatory requirements on your behalf. Open a business account today, so you can focus on growing your e-commerce business in Pakistan while we handle the logistics.