1. As you can see Pakistan’s e-commerce economic size prediction for 2020 is USD1B. Currently, it is USD700M. Amazon selling USD185B in the United States alone. So chances are little and remote for Amazon coming themselves in Pakistan to obtain a share of this tiny fraction of the market.
2. Another reason to back this claim is from the fact that Amazon decided to launch in Australia after almost 17 years of eBay dominance where the size of e-commerce market is currently USD25 B. Why Amazon took so long to reach a market of this size? And what would make Amazon come to get a share of the USD750M market?
3. Another reason to back this claim is the fact that Amazon invests billions of dollars building up the infrastructure that includes their warehouses and an efficient logistics system. And we don’t have that kind of infrastructure or logistics efficiency in Pakistan yet.
4. Amazon needs cybercrime laws to be in place. Want post fraud legal framework and post-fraud investigation framework in place including anti-money laundering framework in place and without Pakistan government’s support, this is not going to happen.
5. So what exactly is this article about? Amazon coming to Pakistan as what? Or for what? It’s about Amazon’s interest in this future potential market and all they would do is buy stakes of major players only. For example, Alibaba is busy buying stakes of some major players. And Amazon would do the same. There is nothing new about it and we expect all these Fortune 500 companies doing same not only in Pakistan but throughout the world. They buy major stakes of various eCommerce players throughout the world, not only Pakistan. So this is nothing new.
6. So who is the winner? Amazon or Alibaba? The true winners would be the consumer themselves. Pakistani consumers will have more innovative platforms to access. Both of these giants will bring smart people in place, will improve the infrastructure, warehousing, will push for better logistics infrastructure by possibly acquiring logistics-related businesses. It could be Amazon dominating Pakistani e-commerce logistics infrastructure one day or it could be Alibaba dominating it one day. It could be Amazon dominating major e-commerce players or Alibaba doing it. It could be Amazon holding warehousing infrastructure one day or could be Alibaba doing it. It could be Alibaba holding major micropayments infrastructure or online payment platform in Pakistan one day or amazon trying to create an alternative to it. It could be just anything we expect from any of these 2 giants.
7. In other words, both of these gorillas are going to hold some major stakes in 3 key e-commerce infrastructure areas of Pakistani commerce one day.
a. Warehousing infrastructure
b. Efficient logistics system
c. Micropayments or instant payment platform
But amazon.com.pk coming in is still infancy and very remote.
8. Amazon allowing Pakistani sellers to sell on amazon.com is still remote and slim.
9. So the conclusion is. As a Pakistani e-commerce seller where is the money to be made? Still, amazon.com and you continue to make fortune in that massive marketplace of USD185B vs making little money in Pakistani e-commerce market worth USD 700 M
10. Let these gorillas play around and we watch the outcome how it improves the 3 key growth areas of Pakistani e-commerce space.