E-commerce business refers to commerce operations such as the sale, purchase, exchange, or transfer of items, information, or services that are carried out using electronics and various technologies. However, in general, e-commerce refers to online transactions. The phrases e-business and e-commerce are sometimes used interchangeably. However, they are two separate ideas with three to four linkages each. E-commerce is harder to manage than e-business. E-marketplace is a type of e-commerce firm that allows for online purchasing and trade. It is a meeting place where buyers and sellers exchange services, commodities, information, money, or any other consideration.
Related: Extreme Commerce vs Enablers: What’s the Best?
History of E-commerce Business in Pakistan and List of famous E-commerce Websites
E-commerce was first introduced in Pakistan in 2001. Suddenly, PayPal services were outlawed in Pakistan, and e-commerce retailers began to rely on cash on delivery and bank payment methods to keep their businesses running. There was no other specialized online payment provider in Pakistan at the time, which was unfair to online purchasers in Pakistan. However, these demands were eventually answered to some extent as a result of the introduction of a new approach; mobile payment systems in Pakistan.
E-commerce Business Trends in Pakistan
In October 2009, the well-known telecommunications provider Telenor announced the “Easypaisa” Mobile Account Service, which allowed users to pay bills, transfer and save money both locally and abroad. They might utilize the easy paisa mobile account to save money. This tendency transformed trade behavior and increased confidence among internet customers.
It is the direct purchase of items from an online store using a web browser, which is enabled by devices such as cell phones, laptops, and desktop computers, among others. Online shopping is now mostly done by Pakistan’s youthful population, particularly the male masses. According to the history of e-commerce in Pakistan, Pakistanis used to favor manual techniques of purchasing things. However, the future of e-commerce in Pakistan is bright, as evidenced by the present rate of growth of e-commerce in Pakistan.
Banking Over The Internet
Online banking is the most convenient and well-liked option among Pakistanis for making e-commerce transactions. All that remains is for the user to configure their credentials and conveniently utilize them regardless of their location.
Aside from buying, e-commerce is also playing a significant and successful role in the promotion of items all over the world. Because of the increased number of internet users, businesses are growing and marketing e-commerce by posting things online and advertising them through advertisements.
Without a question, cell phones are the most popular among Pakistanis. Cell phone technology has grown in prominence in recent years, and it has become the most visible figure in Pakistan’s IT industry. In terms of developing a strong relationship among customers and delivering product information, e-commerce is rapidly expanding.
Read more: How to Setup Stripe as a Payment Gateway from Pakistan?
Top E-commerce Businesses in Pakistan That are Performing Well
Amazon need no introduction. Jeff Bezos (the world’s wealthiest man) launched the firm in 1994 as a book marketplace. From these humble beginnings, Amazon has grown to become the world’s most profitable e-commerce corporation and, perhaps, the world’s largest online empire.
Amazon made $177.9 billion in net sales in 2017, and this was not only from the sale of books. It has evolved into a full-fledged online store, offering a diverse selection of things such as electronics, apparel, software, pet supplies, and, of course, books. Amazon employs 566,000 people, which is far more than Google and its main competitor, eBay. This obviously demonstrates the extent of the activities of this internet store.
The corporation had implemented a “growth at any cost” strategy, which focused on top-line growth while sacrificing bottom-line earnings. Amazon achieved a new level of leadership in its core retail sector, accelerating the company’s development and propelling it into the top ten ecommerce firms in the world.
The problem with Amazon is that after it attained huge success as an online retail organisation, it did not become immobile. To expand its business, the corporation began to branch out and develop additional services.
Amazon Web Services (AWS) is Amazon’s second most profitable company after its online shop. It supplies website owners with web hosting servers.
Amazon is likewise heavily reliant on data. The organisation takes critical data and thoroughly analyses it in order to develop newer, better goods and services. Amazon covertly developed 91 brands to offer on its marketplace, according to Quartz analysis.
With billions of dollars in annual revenue, hundreds of thousands of workers, and a filthy rich owner, Amazon is likely the world’s largest ecommerce corporation, which is why it tops our list.
When it comes to top e-commerce enterprises, Ali Baba is unmistakable. This Chinese e-commerce behemoth was founded in 1999.
Jack Ma founded Alibaba with the goal of making it the largest online wholesale marketplace. It serves not just customers but also retailers. Consider a product, and chances are that it is available from several suppliers on Alibaba in a variety of forms. This is true for nearly every product on the market. Other platforms owned by Alibaba include Aliexpress, Alipay, and Taobao.com. With its diverse operations, the corporation has established an ecosystem.
For example, Alipay, like Paypal, is an online payment service that is now widely utilised for online purchasing. Tabao.com is a Chinese content portal with numerous social networking features. This technology is frequently used by social media marketers to broadcast content, distribute videos, and product evaluations.
eBay is one of the world’s largest e-commerce corporations, with headquarters in San Jose, California. The firm was founded in 1995 and was one of the first successful dot-com-bubble survivors that changed internet purchasing. As a result, its logo features a red-blue-green-yellow colour scheme.
The e-commerce platform acts as a marketplace for both C2C and B2C transactions. People may sign up and list their things for sale for others to see. eBay offers a wide variety of product categories that span practically everything.
The bidding element is what distinguishes eBay as one of the top ten internet corporations in the world. A product can be bid on by interested parties, and the highest bidder receives it. You may be asking how eBay makes money from its ecommerce operations if the merchandise is not held by the company.
Every sale on the store earns eBay a small percentage of the sale price. In 2017, this little portion generated $9 billion in revenue. eBay has invested in Flipkart, which handles its operations in India, in order to expand its company. The corporation also invested in PayPal in 2002 and kept it running until 2015, when the parent company broke it off as an independent company.
Jingdong Jingdong, must be included on any list of the top ecommerce firms. It is based in Beijing, and given its quick development, several large ecommerce retailers (including Alibaba) regard it as a credible competitor. It began in 1998 and commenced online trading activities in 2004 – nearly six years later.
Although JD is not as large as Ali Baba’s portfolio, it had greater income in 2017 ($15 billion more!). JD also employs many more people than Ali Baba. (It has 137,000 customers, whereas Ali Baba has roughly 65,000.). JD is a key pioneer in sophisticated product deliveries employing drones and is well-known for its high-tech delivery method. They have agreed to construct 150 drone launch facilities in order to create a more effective distribution system network in rural regions. JD has also collaborated with Wal Mart to better integrate their platforms, supply chains, and resources in China.
Zappos is an online shoe company that is well-known for its excellent customer service. They are one of the top ecommerce firms in the world, with the greatest customer service. This company’s goal was to “WOW” its clients by providing great customer service without any strings attached.
Zappos was started in 1999 by Tony Hsieh. He ended up investing $500,000 from his own pocket to create the web business after receiving no external cash or investments. He had only one goal in mind: to create the finest online shoe business with the best customer service.
As part of their unique customer service, they do not charge for shipping, returns, or purchases. If you don’t like the shoes when they arrive, you can return them and receive your money back.
In 2009, Amazon’s Jeff Bezos offered to acquire Zappos for $1200 million, but Tony declined. Tony envisioned Zappos operating as an autonomous company with its own identity and becoming one of the world’s top ten ecommerce enterprises.
The online marketplace, previously known as Buy.com, was renamed when Rakuten.com purchased it. It is one of the largest ecommerce websites in Japan and one of the top ecommerce firms. It is sometimes referred to as the “Amazon of Japan.”
Let me give you an idea of the magnitude of this massive ecommerce website: 90% of internet users in Japan have a Rakuten account. It is home to 40,000 enterprises and has acquired a number of international assets, which it has transformed into (foreign) Rakuten branches.
Rakuten is also the official sponsor of the Golden State Warriors of the NBA and the FC Barcelona of Spain. Rakuten is now competing with Netflix, the world’s largest streaming service, following its acquisition of Wauaki.tv, a Spanish streaming provider. It also purchased BitNet, a Bitcoin payment processor, in 2016. Rakuten is one of the world’s largest ecommerce companies, with global sales of 12.9 trillion Yen. It employs about 10,000 people and works in 24 countries.
Home Depot is the world’s largest home improvement retail business and one of the world’s top ecommerce firms. It is a significant power in the retail market, with 2,200 physical shops in three countries, 40,000 workers, and an annual revenue of roughly $90 billion.
Home Depot, which was founded in Atlanta, GA, has expanded its operations to Canada, where it now has over 200 shops in all ten provinces. They have also expanded their business to Mexico, where they now operate over 100 outlets. The intriguing thing about It is that the majority of its online clients use a click and mortar approach. That is, these clients order their home renovation supplies online and pick them up in person. Rugs, bathroom vanities, hardwood floors, light bulbs, washers, and more products are available at Home Depot.
Flipkart is a Singaporean online retailer based in Bengaluru, India. It was started in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of Technology. After working for Amazon, the couple decided to start their own internet business.
Flipkart, like Amazon, began with the goal of becoming a successful online bookshop. Flipkart made a number of acquisitions to extend its business after making its mark in the Indian industry as an online bookshop.
In 2010, Flipkart purchased the book discovery site WeRead as well as lulu.com. A year later, it purchased Mime360.com as well as Chakpak’s digital content inventory. Flyte, its DRM-free online music shop, was its first big growth. The service, as enticing as it seemed, failed owing to severe competition in the region. Fast forward to May 2018, when Walmart won the bidding war and paid $15 billion for the Indian ecommerce business Flipkart. Walmart currently controls 81 percent of the company’s stock.
If you enjoy fashion or aspire to be a fashion designer, Zalando is the place to be. Zalando, one of the world’s top ecommerce firms, is based in Berlin, Germany, and specialises on selling trendy items throughout the world, with a slew of brands making an appearance. Zalando provides gift cards, discounts, vouchers, and online specials in addition to fashion accessories and trends, which help draw millions of customers worldwide.
Otto, based in Europe, is not only one of the world’s top ecommerce firms, but also one of the world’s largest ecommerce companies. Not to mention one of the most prosperous. It is noted for its ingenuity and capacity to consistently reinvent itself throughout time, keeping up with the world’s latest and greatest technical developments.
Otto, a trading firm that sells fashion, sports, electronics, and home equipment, is one of the world’s most frequented platforms for buying nearly anything you desire, thanks to an innovative and user-friendly layout on its website. The procedure is straightforward and similar to that of any other e-commerce firm, but Otto goes a step further by being frictionless.
Otto’s technology base enables it to develop and attract clients to its website for maximum engagement. Otto is currently recognised as one of the world’s top e-commerce organisations, thanks to its excellent collaboration with highly sought-after external brands.