E-Commerce Market of Pakistan figured above $600 Million in 2017

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—File Photo


The State Bank of Pakistan has released the official numbers showing the actual size of the e-commerce market.

The numbers in full as was shown by State Bank of Pakistan data are as under.

 

Metric Number Date Range Report
Number of Online Transactions (Prepayment) 1.2 M FY17 APR
Value of Prepayment Transactions (Locally) Rs. 9.8 B[1] FY17 FQR
Value of Prepayment Transactions (Internationally) Rs. 20.7 B FY17 FQR
Ecommerce Merchants (Locally) 571 FY17 APR
USD : PKR 105 30/06/17 Business Recorder

 

Quick Analysis

Based on the report, it can be deduced that, on average, every prepayment order in Pakistan had a basket size greater than Rs. 8,000 and each of the 571 merchants processed about Rs. 17M in prepayment orders on average.

 

Metric PKR USD
E-commerce Market Size in Pakistan (Prepayment) Rs. 9.8 B $ 93 M
Average Order Size (Prepayment) Rs. 8,167 $ 77.8
Average Revenue per Merchant (Prepayment) Rs. 17.2 M $ 163.5 K

 

“Cash on Delivery” Market Size

Not all e-commerce transactions are done through pre-payment. For instance, in the large marketplaces and brand stores, most of the payments are made via cash on delivery terms. To accurately gauge the e-commerce market size, we have to make an assumption on the volume of transactions processed via Cash on Delivery (COD).

 

Yayvo.com Revenue Breakdown according to Payment Method (2017)
Order Value (PKR) COD Prepayment
0-2500 75.86% 24.14%
2500-5000 57.97% 42.03%
>5000 39.99% 60.01%

 

This shows that the e-commerce market size in Pakistan is ~ Rs 65 Billion 0r ~ $ 6.20 Million.

 

Assumption of COD Market Size COD Market Size (PKR) Total Market Size (PKR) Total Market Size (USD)
95% 186.2 B 196.0 B 1.90 B
90% 88.2 B 98.0 B 933 M
85% 55.5 B 65.3 B 622 M
80% 39.2 B 49 B 467 M
70% 22.9 B 32.7 B 311 M

 

Conclusion

The overall e-commerce market size is much bigger than what many industry insiders estimate. After reviewing and examining the numbers, the conclusion is that the e-commerce market size transcended $600M in the 12-months period between July 2016 and June 2017.

 

—The Article was originally posted on propakistani.pk