While Pakistan has witnessed substantial internet growth, a significant segment of its population lacks essential digital literacy skills, hindering their ability to navigate and place trust in online platforms. This deficiency in digital proficiency poses a challenge to their engagement in online shopping. Additionally, disparities in internet connectivity and infrastructure inadequacies in rural regions further restrict the accessibility of e-commerce platforms.

People are hesitant when it comes to utilizing their credit/debit cards for online payments, primarily due to two main concerns. First and foremost, there is a lack of trust in online sellers, largely stemming from numerous instances of fraudulent activities where sellers either deliver fake or no products, leaving customers with unresolved issues. This lack of trust has led to apprehension among potential buyers.

Secondly, many individuals refrain from using their cards for online transactions due to inherent distrust in the online payment process. Furthermore, a considerable portion of the population either lacks access to credit cards or maintains insufficient balances on their debit cards to facilitate online purchases. In such situations, Cash on Delivery (COD) emerges as a favoured payment option; however, it presents its own set of logistical and security challenges that e-commerce businesses must grapple with.

Addressing these issues is crucial for fostering trust and convenience in the e-commerce landscape, ultimately promoting its sustained growth and adoption.

I consider “trust” to be the central concern in this context. Our online businesses often lack effective customer support and post-purchase services. If, regrettably, a customer receives a defective or low-quality product, the product return procedure can be quite cumbersome. It is a rarity to find robust customer support and user-friendly mechanisms for addressing website-related issues.

Moreover, the ongoing battle against counterfeit products poses a constant challenge to guarantee the authenticity of goods, further eroding consumer trust in the process.

Logistical and delivery companies are also one of the challenges that this industry is facing. I had a rather unusual encounter with one such company personally. Initially, it proved to be quite a daunting task to get in touch with them. Despite a clear fault on their part, when I received a returned product with an entirely different item in the package, they were reluctant to acknowledge their mistake. The investigation process dragged on for nearly a month.

Another very important thing which a logistics company should do and that is the training of their staff. The training of courier agents on proper product handling, especially if your business deals with expensive or fragile items. Such situations can understandably raise concerns for business owners in these sectors.

There is an urgent requirement to establish a comprehensive national-level return policy that incorporates checks and balances for both consumers and businesses. While effective customer support and seamless return procedures are crucial for fostering customer satisfaction and loyalty, their implementation and management can be quite demanding.

Furthermore, factors such as political instability and economic fluctuations have ripple effects on all businesses, including e-commerce. Nevertheless, despite these formidable challenges, the e-commerce sector in Pakistan has demonstrated significant growth potential. Many businesses and stakeholders are actively engaged in efforts to confront these issues, with the aim of unlocking the full potential of the online retail market.