E-COMMERCE/DIGITALIZATION

OF ECONOMY

Group Members:
•Ruhama Asif
•Rachel Victor
•Amara Talaat
•Yusra Wasif
•Abdul Rehman Gillani
INTRODUCTION

• E commerce or electric commerce is

the buying and selling of products and
services through any electronic
medium.
• It is the sale of physical products
• It is also sometimes referred to as any
type of transaction that occurs online.
• It emerged in the 1960’s when a
company started regulating its
documents through EDI (Electronic
Data Interchange).
• By 1990, the first online shopping
website had been set up.
TYPES OF
ECOMMERCE
HOW IT STARTED
•Ecommerce became possible in 1991 when
the internet was opened for commercial
use.
•Michael Aldrich was an English inventor
who invented online shopping to enable
transaction processing b/w consumers &
business.
SECURITY CHALLENGES

• Security was the next big issue and the

release of Netscape 1.0 in 1994
featured a protocol called Secure
Socket Layer (SSL)
• SSL made sure that the personal
information could be encrypted on the
web.
AMAZON & EBAY
• Amazon & eBay are two different companies responsible for revolutionizing
ecommerce.

• Amazon in particular created one of the

first full-scale business models for online
retail.
• Jim bezos, founder & CEO, sold
the company's first ever book in July 1995.
EBAY

• During the same

year, eBay got
started and by
2007, was earning
$52.5 billion and
had more than 220
million users.
CONT.

• Because ecommerce is the fastest

growing segment within retail and it's
easier to ever get involved, now is the
ideal time for entrepreneurs to invest
in ecommerce.
BARRIERS TO ECOMMERCE

• Since its conception in the 1990’s

internet has not only changed the world
but also changed the ways of doing
business
• The potential market size of Asia region
for e commerce is estimated to be $ 500
billion dollars”(IBEF, 2016)
BARRIERS TO ECOMMERCE
IN DEVELOPING COUNTRIES

• Low customer confidence as many times what is

shown is not delivered and there are issues with
quality.
• Unavailability or poor internet connection
• Traditional mindsets of the population which
resist change and are not accepting of change as
they prefer the old ways even though they are
outdated and are doing more harm than good
• Unavailability of payment methods for a major
chunk of the population
LACK OF PAYMENT MODES

• According to a research almost 50%

people in Pakistan don’t use credit or
debit card
INTERNAL AND
EXTERNAL FACTORS
THAT STOP BUSINESS
FROM USING E
COMMENCE
 Pakistan is one of the
fastest growing e- This segment of the
commerce countries. The economy is expected to
country has one of the grow steadily as there are
highest rates of mobile and approximately 44.6 million
internet penetrations in Internet subscribers in
South Asia with up to 45 Pakistan and this figure is
million Internet subscribers expected to double during
and 20 million Facebook the next five years.
users.
FACTORS BEHIND THE GROWTH
OF E-COMMERCE IN PAKISTAN
The online shopping trend is spreading
quickly in Pakistan.
• Affordable smartphones
• Social media (the popularity of
Facebook, Twitter, Skype and Instagram)
• A wide variety of products
• Ease of buying,
• Customer feedback/reviews on social
media
• Cash on delivery( popular payment
method, accounting for 90 percent of all
transactions)
 • Retail e-commerce (Daraz.pk, PakWheels
and OLX Pakistan)

PLATFORMS FOR • E-ticketing

E-COMMERCE 1) Airlines (Bookme.pk, Easytickets)
INCLUDE (WITH 2) Railway (Pakistan Railway)
EXAMPLES) 3) Cinemas (Cinepax and many more)
• Ride-hailing (Uber and Careem)
• Food Delivery (Food Panda, Eat Mubarak)
• Branchless banking and m-commerce
(Easy Paisa, HBL payment through app)
Entrepreneurs enjoy heavy traffic on Pakistani holidays and
event season such as Eid-ul-Fitr ,Eid-ul-Adha ,Black Friday, New
Year and Wedding Season.
Pakistan's e-commerce sales in 2017 were $ 622 million, 0.34%
of the retail market, which is doubling every year. It is expected
to reach 1 billion US dollars by 2020.
COMPARISON OF E-COMMERCE IN PAKISTAN TO

• America
• Korea
• China
• India
• Saudi Arabia
• Dubai
FUTURE OF E-
COMMERCE
•Harvard Business Review
2018 categorized Retail
business as the “Fastest
Failing Business”
•E-Commerce has increased
its share of total worldwide
sales from 12.5% to 26% in
2 years.
•Expected to grow at an
increasing rate in the Future
as well.
 THANK YOU!
FEEL FREE TO ASK SENSIBLE QUESTIONS! ;-)