Marketplace and Quality Assurance Presentation - Vincent Chirchir
Barriers to ecommerce in pakistan
1. Faiz ul manan 3944
Kamran 3953
Ihsan ullah 3983
Qaiser ali
Monday, May 12, 2014
1
2. Barriers to e commerce in
Pakistan
Monday, May 12, 2014 2
3. Most people in Pakistan have developed
wrong conception of E-commerce. They
take a very limited view of E-
commerce, restricting it to only those
products which may be “digitized” and
transmitted online through internet and the
payments for which is also made online
through credit cards.
Monday, May 12, 2014
3
4. Among the most important impediments to
the growth of E-commerce in Pakistan is
the issue of trust. Counterfeiting and
distribution of below par products in the
face-to-face transactions is a common
problem in the country. How can people be
expected to trust the sellers whom they do
not know, and who would deliver goods
online/offline after the payment is made.
Monday, May 12, 2014
4
5. A large number of people in Pakistan will
take a long time to come round to the idea
that they can order goods and make
payments through internet from their
homes without physically going out.
Monday, May 12, 2014
5
6. The literacy rate of the country, according
to official figures, is around 54 percent. Out
of these 54 percent literate people at least
50 percent are computer illiterate.
Thus, with around 75 percent of the
population without computer literacy, the
growth of E-commerce in the country
cannot be expected to progress at any
faster pace.
Monday, May 12, 2014
6
7. In order to undertake E-commerce
transactions, one must be connected to the World
Wide Web, for which possession of a personal
computer (PC) or a laptop is a basic requirement.
Although the prices of computer hardware have
declined in the past few years, yet a personal
computer is still not affordable by vast majority of
the people of the country. Besides a personal
computer, a telephone line or cable line are also
required for a user to get connected to the World
Wide Web. Thus, high costs of computer hardware
are proving to be a bottleneck to the growth of the
E-commerce in the country.
Monday, May 12, 2014
7
8. It is true that in the past few years there
has been a significant increase in the
number of internet users in Pakistan, with
some observers claiming that in Pakistan
the internet access is now available to
800+ cities, towns and villages covering
almost 97 per cent of the population.
Monday, May 12, 2014
8
9. An essential part of e-commerce is
establishment of cheap, quick and reliable
transportation channels for the physical
distribution of those products which cannot be
digitized and distributed online. In
Pakistan, the Pakistan Postal Service, despite
its extensive network and large number of
employees is inefficient, to say the least;
hence, unreliable. The private courier
services, on the other hand, are expensive.
Monday, May 12, 2014
9
10. Only way to do business in other cultures
is to be a part of such cultures. Language
plays a very important role in this regard.
In the first step you should provide local
language versions of your web site.
Software packages exist that can translate
your web site content into different
languages.
Monday, May 12, 2014
10
11. It should be useful to know about different
cultural issues surrounding international e-
commerce. Firstly, there is the issue of
choice of name. For example, a famous
car manufacturing company had chosen
the name „nova‟ for one of its car
models, which could be understood by the
people in Latin America in the sense that „it
will not go‟.
Monday, May 12, 2014
11
12. Low credit card penetration and low trust in
online transactions has led to cash on
delivery being the preferred payment
option in Pakistan. Unlike electronic
payments, manual cash collection is
laborious, risky, and expensive.
Monday, May 12, 2014
12
13. Cost is a crucial issue. The initial
investment for the adoption of a new
technology is proportionately heavier for
small than for large firms. The high cost of
computers and Internet access is a barrier
to the uptake of e-commerce. Faced with
budgetary constraints, SMEs consider the
additional costs of ICT spending as too big
an investment without immediate returns.
Monday, May 12, 2014
13
14. The national network/physical
infrastructure of many developing
countries is characterized by relatively low
teledensity, a major barrier to e-commerce.
There are also relatively few main phone
lines for business use among SMEs.
Monday, May 12, 2014
14
15. Ensuring security of payments and privacy
of online transactions is key to the
widespread acceptance and adoption of e-
commerce. While the appropriate policies
are in place to facilitate e-commerce, lack
of trust is still a barrier to using the Internet
to make online transactions.
Moreover, credit card usage in many
developing countries is still relatively
low.56
Monday, May 12, 2014
15
16. Connectivity – Networks to be available easily, i.e.
affordable access.
E-leadership – E-Readiness to be a national priority
lead by people with strong practical experience.
E-Business Climate – It’ll be the ultimate result of E-
Leadership. The healthier the E-Business Climate
is, the better growth industry will see.
Broadband subscribers – Introduce more
economical broadband services. Recently the have
been introduced but pale when in comparison to
what the first world nations offer to their citizens.
Monday, May 12, 2014
16
17. Knowledge – People should be more computer literate.
Practical use of computers to made compulsory at
school and college level.
Improved Security – Government should
encourage usage and ensure that security related
issues are not a cause of concern which hinders
adoption.
Cyber Crime Eradication: Government should take
serious action against cyber crimes. The regulated
cyber space will not open the doors for locals to
shop safely but will also encourage foreign
investments.
Monday, May 12, 2014
17