Name: Ayesha Javed

Registration no: L1F16BBAM0059

Date: 26th November, 2019.

Business Article

What’s preventing a boom in e-commerce?

Summary:

Few months ago government launched much awaited e-commerce policy. After the
implementation of this framework many of the stack holders came to know about the challenges
that were face in e-commerce and they decided to take some serious action towards this and what
measurements they can take to fuel e-commerce. In Pakistan, many people are divided among
tradition shopping and online shopping as they lack trust in an online shopping. While many of
the tech players have used this platform to their advantage and benefit. Behavioral changes have
been seen among large number of people. Facts and figures regarding the industry’s growth shows
that how the industry will be disturbed. With the comparison of our industry growth with other
countries we came to know that how that how uncovered the market still is. Other countries with
their downfall in economics still manage to generate revenue. The reason Pakistan is falling back
on e-commerce is that they do not have websites in local languages due to this the main beneficiary
are foreigners and literate people of our country while the mass majority is largely left behind. Not
only the unserved but keeping in mind the served segment we can look at the major reservations
of customers regarding online businesses. A net promoter score an index ranging from negative
from 100. This indicator measures the likeliness of customer recommending a specific
product/service on scale of 1-10. Scores between 0-6 is considered as detractors, score on scale of
7-8 is considered as passives while 9-10 are considered promoters. Many of the indicators was a
negatively skewed which was led by Pakistan leader Daraz.com itself, it has -27 index scale, its
customer showed major dissatisfaction on the quality of product, some complained on customer
service and return policy. Meanwhile, many were satisfied with the product delivery time. Goto.pk
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recorded Net Promoter Score of -6.7, many of its customer was not happy with the price accuracy
while many were happy with the product quality. Many other websites like; hum-mart, mega.pk,
homeshopping.com, shophive.com, iShopping.com scored Net Promoter Score of 14, 10, 23, 16,
20 respectively. Many online sites scored negative on shoe industry i.e. -30 and scored positive in
make-up industry i.e. 64. Many ride hailing scored -57 on Uber while Careen and Bykea scored
50, 40 respectively. This shows that there are some factors which are being ignored by the owners
due to which they are unable to receive positive score on NPS. Many reason could include the
service that they provide or on how they charge the customer, there are numerous factors which
can lead to negative score. In food sector, food-panda scored -10 as its customers were not satisfied
by the payment and delivery duration. However, there may be some other factors that we cannot
identify at the moment but surely there may be issue with the policy that the company/organization
makes or the service they provide by which the customers are not satisfied. All these above
mentioned firms lack some things which needs to be solved in order to compete in the market
nationally and internationally.