Amazon Marketplace: Pakistani Sellers Among World's Top 3 Fastest Growing
A year after joining Amazon Marketplace, Pakistan is currently ranked as the third biggest source of new sellers joining in 2022, according to Marketplace Pulse research. Amazon e-commerce platform has global reach. As of March 2021, Amazon Marketplace operated and sold in 18 countries, mostly in advanced economies of Europe, Japan and North America as well as in emerging markets like Brazil, China, India, Arab Gulf states and Turkey.
|Pakistani Sells on Amazon Marketplace. Source: Runway Pakistan|
Amazon added Pakistan to the countries allowed to sell on its marketplace in May 2021 after a year-long talks between Amazon, Pakistan’s Ministry of Commerce, and the National e-Commerce Council. Prime Minister Imran Khan's Special Assistant Razzak Dawood personally led this effort to boost Pakistan's exports. Eventually, the new sellers from Pakistan will contribute significantly to the country's exports, particularly in cotton textiles and apparel categories.
Even before officially joining Amazon Marketplace, there was already a cottage industry of gig workers that had sprung up in Pakistan to support merchants who had been unofficially selling products on Amazon Marketplace. These Pakistani merchants registered from countries such as the United Kingdom which are already on Amazon's approved list.
Pakistani gig workers include Amazon Virtual Assistants. These are freelancers providing services such as customer call centers, administrative tasks, fulfillment, and web development. Online freelance marketplace Fiverr lists over 7,000 Pakistanis who advertise themselves as Amazon Virtual Assistants, more than from any other country.
Here's Amazon Marketplace Pulse's ranked list of seller countries in terms of new sellers who have joined Amazon Marketplace in the last 12 months:
Rank Seller Country
1 United States
4 United Kingdom
As to future growth, Marketplace Pulse Research projects a lot more sellers coming from Pakistan which is home to the world’s largest Amazon seller groups: “eCommerce by Enablers” with over 1.2 million members, “Extreme Commerce by Sunny Ali” has more than 1.1 million members, and “Ecommerce Success Pakistan” has nearly 200,000. The groups started years before Pakistani sellers were officially allowed to sell on Amazon.
Grants of up to PKR 20M on offer from USAID for Pakistani companies seeking to export to US and to receive FDI.
Over 1.2m vendors of country registered with marketplace
Pakistan has now become the third largest popular new seller on the Amazon marketplace, after the United States and China, with over 1.2 million registered vendors.
Pakistan was allowed to enter the Amazon marketplace in May 2021, a year after talks began in 2020, following the implementation of Pakistan’s first e-commerce policy, Marketplace
There are more sellers in Pakistan as compared to India, Vietnam, the UK
The country, which has just registered itself with the marketplace, is home to the world’s three largest Amazon seller groups. These vendors are expected to contribute to Pakistan’s exports of over
Young entrepreneurs and small and medium-sized enterprises across the country will be able to avail the benefits offered by the platform, which will widen and diversify Pakistan’s export basket.
This will not only enhance their revenues but will also help the government in improving the macroeconomic outlook of the country,
The expansion of the e-commerce industry is important to support the medium and small-sized businesses to operate and make profit with the rising cost of
Pakistan’s e-commerce policy is part of the overall Digital Pakistan vision aimed at paving the way for a holistic growth of e-commerce by creating an enabling environment in which enterprises have equal opportunity to grow steadily.
Major exports of Pakistan that contribute to the national economy include textiles, leather and sports goods, chemicals, carpets and rugs. Pakistan also exports significant quantities of rice, sugar, cotton, fish, fruits
According to eCommerce analysis, Pakistan is the 37th largest market for eCommerce with revenue of $5.9 billion in 2021, placing it ahead of Iran.
With an increase of 45%, the Pakistani eCommerce market contributed to the worldwide growth rate of 15% in 2021.
Pakistani fintech PostEx has acquired logistics service provider Call Courier, creating what it describes as the largest e-commerce service provider in the country. PostEx will now serve 1.3 million users with over 8,000 merchants across 500 cities in Pakistan, and is on track to having a monthly loan book of more than $12 million.
The acquisition means that Call Courier will become a whollyowned subsidiary under the group name. PostEx provides services like upfront payments in a country where more than 90% of e-commerce payments are still completed in cash, and revenue-based financing for e-commerce sellers and SMEs.
PostEx co-founder and CEO Omer Khan told TechCrunch that according to the World Bank, about 100 million adults in Pakistan don’t have a bank account. As a result, businesses have limited access to working capital and lack adequate cash flow. On the other hand, consumers are wary of digital transactions, and even many who have bank accounts still prefer to pay cash on delivery for items ordered online.
But cash on delivery is problematic for e-commerce businesses because they have a higher rejection rate at the door. Furthermore, funds from cash on delivery purchases often take up to two to three weeks to be deposited into a business’ banking account, compared to a few days for digital payments.
As a result, PostEx’s founding team decided there was potential to build a reliable logistics service provider, plus upfront cash. Upfront payments mean that online vendors no longer have to wait through long payment cycles, and have better cash flow.
“We’re out there making it simpler for businesses to reach out to more customers, take care of their delivery needs and provide them with upfront liquidity,” said Khan. “This is essential for smaller businesses that need every penny to sustain themselves.”
In terms of competition, Khan says PostEx’s novelty factor is its hybrid of fintech and logistics. It has raised $8.6 million to date, and its backers include Zayn Capital, Global Founder Capital, MSA Capital, RTP, FJ Labs and Shorooq.
In a statement, Senator Afnan Ullah Khan, a member of the Prime Minister’s IT Task Force Committee said, “This acquisition shows the importance of close collaboration between fintech and logistics highlighting the importance of access to capital. This acquisition makes PostEx the largest e-commerce service provider in the market, showing the potential of startups for challenging incumbents. It’s refreshing to see new solutions to old problems.”