‘Improved e-commerce infrastructure to boost sector’

LAHORE: Courier delivery time, high frequency of cancellations and returns, fake orders, delay in cash-on-delivery (CoD) payments by courier companies, and payment gateway / digital payments issues were biggest challenges faced by retailers selling via e-commerce platforms during Covid-19 in Pakistan.

Internal bottlenecks due to unexpected orders (during and post-lockdown period), website-related problems / technical issues; after-sales support issues like refunds, exchange, ineffective performance of digital marketing; international shipment-related issues; and inventory issues like fulfilment from stores were other issues faced by the organised brands of Pakistan while doing online business.

These were the findings of a survey conducted by the Chainstores Association of Pakistan (CAP) titled “e-commerce during the pandemic” from its members.

Respondents included known small, medium and large brands of Pakistan, some with their footprints in global markets as well. The survey was conducted in January 2021 for the period of the e-commerce sales from July-December 2020.

The delay in courier delivery time was the biggest challenge faced by retailers, with 48.3 percent reporting the issue.

It was followed by high frequency of order cancellations at 46.7 percent, high frequency of returns at 40 percent, and fake orders standing at 38.3 percent.

Further, payments related to e-commerce also remained a big issue for the retailers as 33.3 percent complained about delays in COD payments by courier companies and payment gateway / digital payments issues as well.

According to Pakistan Bureau of Statistics (PBS) data, Pakistan’s retail trade for 2019-20 was estimated to be Rs7 trillion (16 percent of GDP). Presently, the ‘organised retail sector’ comprises approximately 8-10 percent of the entire trade and has been growing over 20 percent annually for the last decade.