Barriers to ecommerce in pakistan


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Barriers to ecommerce in pakistan

  1. 1. Faiz ul manan 3944 Kamran 3953 Ihsan ullah 3983 Qaiser ali Monday, May 12, 2014 1
  2. 2. Barriers to e commerce in Pakistan Monday, May 12, 2014 2
  3. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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
  18. 18. your thanks attention thanks for Monday, May 12, 2014 18