In 21st Century in which we all
are living technology is become a necessity and therefore, its application in
business and commerce are not a matter of choice but a matter of compulsion.
This is why the global competition could be faced with the five vital components
namely quality, cost, convenience, communication and time could be attainable if
we make transactions electronically. These five facets are also of paramount
significance when we have to face stiff and throat cutting competition. Since
small and medium sized businesses form a major part of the developing economies,
E-commerce has great potential of growth at both state and individual level.
Pakistan’s economy is no different. Pakistani government realized this
opportunity and started Information Technology (IT) and E-commerce initiative as
early as 2000, where banks were expected to lead the way but it faced a number
of hindrances in its successful implementation and currently ranks as the second
lowest adopter (40%) of E-commerce. However, statistics show that internet users
have been growing at an amazing rate. In Pakistan (18.5% of people using
Internet and 2.6% of the people of Asia) and it ranks 8th in the top ten
countries of Asia, with regard to usage of Internet. E-Commerce is especially
good for entrepreneurship as it requires lesser amount of initial investment
than brick and mortar business. But it was seen that Pakistani culture is such
that it does not encourage entrepreneurship. Low literacy rate was seen as an
impediment in E-Commerce. However, the findings pointed out that it was more
important to target people having internet connection and literacy as well. Once
it becomes popular there, then measures should be taken to find ways to spread
it throughout Pakistan. However, another aspect of literacy which did matter was
computer literacy. Many people have a fear of unknown when it comes to
technology and that is a main problem. Lastly, respondents were of the opinion
that Pakistan seems to be really low on “trust”. Buyers don’t trust sellers and
vice versa. Credit card misuse, overpricing and selling substandard goods and
misinformation from the buyers‟ side come under the category of trust problems.
This contrasts with the fact that “trust” has been identified as a main key
characteristic in the success of E-Commerce. In a country like Pakistan, where
the customer service is very low, Internet presence may help businesses to
increase and improve on it. While having a brick and mortar presence can solve
several trust issues and can especially be a convenient way for loyal customers
and further, building loyalty. E-Commerce should focus on people with a computer
and an internet connection and specifically, the generation that is already
comfortable with internet and computers. Besides this E-Commerce should not only
be seen as a source of high revenue, rather a necessity to keep up with the
global trend. A good way to achieve this is by building partnerships between
organizations and to make E-Commerce popular. This is already happening in
offline businesses in many ways. E-Commerce needs to do the same for building
trust and credibility and introducing new brands and should try to create
associations. This can be done by allowing some products, discounts or deals to
their members of their “online club”. Credibility should be built through
reviews done by prestigious universities, famous magazines and credible people
whom the consumers trust. It is more likely that people will buy brands they
already trust without physically inspecting them. Therefore, they should be
encouraged to buy them online.The issue central to the success of E-Commerce is
customer service. The organizations need to improve their customer service to
secure their trust and credibility. Universities and educational institutions
should take initiative to make their students and faculty comfortable in using
E-Commerce since those are the people who would be building the future of
commerce. Government should also take steps in this regard as it can be most
beneficial with respect to the CEPC scenario. It is the only platform for both
small & large businesses to increase their revenue and to interact with large
variety of costumers around the globe. E-Commerce is the Future of Pakistan’s
economy. We should focus on it to boost our Nation economically.