June 1, 2021

Amazon to Start Operations in Pakistan

amazon in pakistan

The recent age of e-commerce boom all is set to begin for Pakistan as e-commerce giant Amazon has decided in principle to include the country to its approved sellers’ list within next few days.

Pakistan’s addition to Amazon’s sellers’ list will create chances for the exporters to trade their products Internationally through the platform. The platform gives Amazon’s 3 P model which helps brand owners (third party relationship, retailers sell their products without being added to middle man, to buyers through the marketplace, while 1 P model is for mass producers, marketplace works as retailers whereas brand is wholesale supplier, who want to produce for Amazon brand items.

Some of the Pakistani brands are already trading on Amazon from their overseas offices, but the country’s addition in the sellers’ list will open the opportunities for small and medium businesses. This action will help facilitate more enterprises and online consumers will get reach to Pakistani brands as they will be able to access all important markets through Amazon.

Amazon earns about $300-400 billions of sales every year. Amazon is a consumer-centric marketplace. Therefore, customers’ reviews and fulfillment level are exceptionally important.

Like other international companies and brands, Amazon is a highly consumer-centric marketplace where consumer reviews are taken very sincerely. Therefore, the entrepreneurs of Pakistan will have to be very cautious if they want to benefit from this opportunity.

The trend of e-commerce had quickened in recent years with the growth and easy accessibility of the internet. Due to the Covid 19 pandemic, the value of e-commerce had increased manifolds, making it a very vital economic sector.

Pakistan’s e-commerce market has increased dramatically over the last year. It is expected to have expanded by 35 percent in his quarter of the current fiscal to Rs 96 billion from Rs 71 billion a year ago. And it is planned to include our SMEs to follow this gateway with the best quality products of international standards.

It is a good indication that now small Pakistan sellers, especially women and SME entrepreneurs, have products and goods needed by the consumers outside Pakistan but cannot afford a big export set-up.

Commerce adviser Dawood stated in a tweet: “We have finally made it. Amazon will be adding Pakistan to its sellers’ List within a few days. We have been engaged with Amazon since last year, and now it’s happening.”

“It is a great opportunity for our youth, SMEs, and women entrepreneurs. An important milestone of e-Commerce policy achieved has been through teamwork by many people across the globe.”

After being added to the sellers’ List, the significant difference would be that Pakistani companies would create IDs using their Pakistani informatons, such as Pakistani banks etc. However, SMEs youth and women entrepreneurs will have an excellent possibilities to join the global market.

Since March 2020, more than half of new sellers in the United States belong to China. According to a report by Marketplace Pulse, china-based sellers represented 75 percent of recent sellers on Amazon in January. This marks a significant increase from 47pc in the previous year.

India is a small contributor to Amazon’s overall sales right now, but it’s set to become a significant growth driver for the US e-commerce giant. As many as 100,000 sellers are registered from India and exporting products worth more than $2bn.

The importance of online marketplaces such as Amazon has increased due to the Covid-19 pandemic because online shopping has become essential.

Pakistan had a great manufacturing base and was already giving quality products to Europe and North America. A huge population from the sub-continent in these regions wanted products from their area, including spices, clothes, etc.

Besides traditional exports of sports goods, textiles, surgical, and leather products, there are also business possibilities for marketing services providers. These can help Pakistani companies grow their brands and content and show their powerful image on Amazon and similar platforms internationally.

Meanwhile, Prime Minister Imran Khan appreciated the development. In a tweet, he said: “A great development as Amazon has finally approved that our sellers can export their goods through their system. Amazon starting operations in Pak will open opportunities for our youth as it will enable a new breed of young men & women entrepreneurs to join the export market.

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