BUSINESS REPORT: Pakistan to cross Rs. 100 billion eCommerce trade in 2021

BUSINESS REPORT: Pakistan to cross Rs. 100 billion eCommerce trade in 2021


Partnership signed to create new entrepreneurial ventures for eCommerce and digital trade to grow the domestic market size with knowledge-based learning platform


ISLAMABAD, FEB 24: Extreme Commerce Pakistan’s first EdTech company specializing in e-commerce and digital trade education and practices to train Pakistani youth to sell on Daraz platform. Extreme Commerce and Daraz signed a memorandum to improve eCommerce and digital trade literacy in the country.

Although, the State Bank of Pakistan (SBP) and Federal Board of Revenue (FBR) are working to introduce a platform that will facilitate Pakistani traders to exports their products seamlessly on global platforms such as Amazon, Alibaba, and eBay, the local traders are looking for an opportunity to explore the global markets enthusiastically.

As per the latest eCommerce numbers, released by the State Bank of Pakistan (SBP) upto Q3 2020 (Q1 FY21), the eCommerce market size for the year upto Q3 2020 was 96B PKR (assuming a 60% COD volume), prepayment was 39B over the same period. There are now 2,164 merchants who accept prepayment methods which is a large jump from the previous quarter. There are now 43k orders a day via prepayment method (in Q3 2020) on Pakistani merchants, which is up from 24k and 13k in the same quarter in 2019 and 2018. More eCommerce data can be found HERE.

The partnership between Extreme Commerce and Darza, will be imparting knowledge skills on how to sell on the Daraz platform more efficiently with maximum customer satisfaction and potential to grow. The arrangement will facilitate the sellers to expand their enterprise further and improve their online selling skills, including formation of businesses, creating stores, product branding and marketing.

The Extreme Commerce’s Video Boot Camp (VBC) is a collection of 100+ E-Commerce and digital money-making skills in the world. VBC covers an extensive range of skills that builds and empower with eCommerce and digital trade skillsets to earn money by offering services to clients across the globe and setting up own businesses and stores on national and international eCommerce platforms. Through this MOU, the sellers and traders on Daraz will also benefit from the rich knowledge resource available on the VBC platform as well. The partnership will be catalytic for the eCommerce market to cross the Rs. 100 Billion eCommerce trade barrier in 2021. 

Sunny Ali, the Founder and Chief Executive officer of Extreme Commerce shared his views on the partnership and said, “Our first step is to start building capacity of the sellers on Daraz through our trainings and our state-of-the-art Video Boot Camp (VBC). Educating everyone with eCommerce dynamism on Daraz. We will be the bridge between Daraz sellers and Daraz with the Extreme Commerce’s knowledge repository as the learning platform. We can quickly relay issues, challenges and find solutions together. As this will help the sellers in the country to explore the eCommerce phenomenon as a knowledge-based economic growth model.

Extreme Commerce’s vision to make Pakistan a global e-commerce back-office hub has been acknowledged by international institutions as well. Extreme Commerce aims at developing a national e-commerce ecosystem through inspiring and empowering entrepreneurs. Being Pakistan’s largest e-commerce knowledge sharing and capacity building platform, Extreme Commerce has a community of more than half a million people nationwide. Whereas, Daraz believes in enabling local entrepreneurs and businesses to do business anywhere in this digital era and has a community of more than 70,000 sellers nationwide.

Omair Baksh, Head of Marketing at Daraz said, “Adaptability to e-commerce has increased in the past few months and an increased number of sellers are moving towards online selling to make a stable living for themselves. We take complete responsibility to train the seller community and equip them with the right skills for their business growth. Daraz has always focused on seller education as a core and with this partnership we are taking an additional step to create value for our sellers and buyers along with improving customer experience.

The cross-border Business to Consumer (B2C) e-commerce regulatory framework has also been developed by the SBP and the Web-Based One Customs (WeBOC) e-commerce module that the FBR is developing, would help facilitate online sales of exporting firms by allowing hassle-free documentation and shipment of export orders.

With this partnership Pakistani e-commerce enthusiasts will have access to customised courses designed for Daraz sellers that will focus on specialized training on digital trade, data analysis and other innovative solutions for business growth in ecommerce.

The success of any ecommerce business is highly dependent on customer experience that can be improved by many folds through capacity building of the seller base through education and awareness. A key battle for the ecommerce industry in Pakistan has stood to be customer trust which can be improved with ecommerce education, performance-based trainings and knowledge sharing by experienced mentors.

Extreme Commerce is Pakistan’s first EdTech start up with a sole focus on skills development and capacity building within the ecommerce and digital arena. Founded in 2017, it is the largest community of its kind in Pakistan, with well over half a million members and over 100+ courses and income streams to choose from. Extreme Commerce estimates that by 2025, it will foster a community of over 1 million strong, generating well over $1 billion in inward remittance for Pakistan.

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COURTESY DAILYTIMES

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