Pakistani shoppers now discover, compare and order products on their phones every day, and the infrastructure behind online buying has matured quickly. That includes mobile internet, bank and wallet payments, couriers and a regulatory framework that is starting to take shape. For a business of any size, e-commerce has stopped being an experiment and become a way to reach more customers, run more efficiently and build a brand you control.

Key takeaways

  • Your customers are already online. Pakistan has well over 150 million mobile broadband users, and most retail payment transactions now go through digital channels.
  • Digital payments for online orders are growing fast, but cash on delivery is still the payment method many shoppers trust most. Successful stores offer both.
  • Selling only through Instagram or WhatsApp DMs caps your growth. Your own store gives you a catalogue, a checkout, customer data and a brand you own.
  • The rules are formalising. Online sellers now need to be registered for income tax, and couriers and payment providers withhold tax on online orders.
  • You can start small with a hosted platform, a focused catalogue and one or two reliable couriers, then grow from there.

Your customers are already online

Ten years ago, the main argument for e-commerce in Pakistan was future potential. That potential has largely arrived. In October 2026, officials told the National Assembly that Pakistan had about 210 million mobile subscribers and around 161.7 million mobile broadband users. For most Pakistanis, the phone in their pocket is their main computer, their shopping mall and their bank branch.

Shopping behaviour has followed. People look up prices online before visiting a market, order meals and groceries through apps, and buy clothes after seeing them in an Instagram reel. Even customers who end up buying in person often start their journey online. If your business has no online presence, or only a social media page with “DM for price”, you are missing many of those moments.

It is not only a big-city story

Mobile internet reaches customers in smaller cities and towns that may have limited access to branded retail. Nationwide courier networks mean a brand based in Karachi, Lahore or Sialkot can sell to buyers in Sukkur, Mardan or Bahawalpur without opening a single shop there. For many businesses, e-commerce is the most affordable way to go national.

Digital payments have come of age, and COD still matters

The State Bank of Pakistan’s Annual Payment Systems Review for FY26 (July 2025 to June 2026) shows how quickly payments are shifting:

  • Digital channels accounted for more than 92% of retail payment transactions.
  • E-commerce merchants registered with banks grew from 9,584 in FY25 to 23,356 in FY26.
  • Account- and wallet-based payments made up almost 96% of e-commerce transactions processed via banks, with cards making up the rest.
  • About 3.6 million merchants were registered on the Raast P2M (person-to-merchant) alias, the State Bank’s instant payment system for businesses.

In practice, many Pakistani customers who pay online use a mobile wallet such as JazzCash or Easypaisa, a bank app or a Raast transfer, not a credit card. If your store only accepts cards, you are missing a large group of digital payers.

At the same time, cash on delivery remains deeply rooted. A DHL guide for Pakistani sellers, citing a TGM Research survey, notes that nearly 70% of online shoppers in Pakistan still prefer to pay cash on delivery. COD lowers the barrier for first-time buyers, but it brings refused parcels, delayed cash remittances and extra handling. The practical answer is to offer both and gradually nudge repeat customers towards prepaid options. We cover that in detail in Cash on Delivery vs Card Payments in Pakistan.

What e-commerce does for different kinds of Pakistani businesses

E-commerce isn’t one business model. Here is how it typically adds value across common business types:

Business type What going online unlocks Watch out for
Fashion and lawn brands Nationwide reach, collection launches without waiting for footfall, pre-orders for new drops Size-related returns, so publish clear size charts
Restaurants and food businesses Direct online ordering without full reliance on aggregator apps, own customer list, deals and combos Delivery radius and time windows, peak-hour capacity
Home-based and women-led businesses A professional storefront without a physical shop, flexible working hours Keeping stock and order tracking organised as volumes grow
Cosmetics, organic and wellness products Room to explain ingredients and benefits, build trust and sell subscriptions or refills Accurate claims, shelf life and safe packaging
Manufacturers and wholesalers Selling direct to consumers at better margins, B2B order portals for retailers Avoiding channel conflict with existing distributors
Education and services Online enrolment, fee collection and booking Clear refund and cancellation terms

The brands that run on Baselyne show this range. They include restaurants such as Karachi Broast and Cluckys, organic and natural product brands such as 100% Raw.Organic.Real and Magic Oils, and an education provider, The Learning Vista. See more on our clients page.

Why your own store beats selling only through DMs

Many Pakistani businesses start online through Instagram, Facebook and WhatsApp, and that is a smart, low-cost way to test demand. But a business built only on DMs runs into limits:

  • Every sale needs a conversation. Someone must answer “price?”, share photos, confirm the address and note the order by hand. That doesn’t scale.
  • No real catalogue or checkout. Customers can’t browse, filter by size or check out at 2am when you’re asleep.
  • No ownership. Algorithm changes, account restrictions or a hacked page can cut off your sales overnight.
  • Limited data. It is hard to know who your best customers are, what they bought before or which ads actually produced sales.
Channel Strengths Limitations Best role
Social media and DMs Free to start, great for discovery and conversation Manual ordering, no ownership of the platform Marketing and customer service
Marketplaces Built-in traffic and trust Commissions, price competition, limited branding and customer data Extra sales channel, clearing stock
Your own online store Full brand control, customer data, your own checkout and pricing You must drive traffic yourself Home base for the business

The strongest approach is usually all three working together. Social media brings people in, and your own store converts them and keeps the relationship.

Policy and compliance: the rules are formalising

Pakistan’s federal cabinet approved the country’s first e-commerce policy framework in 2019. Its stated aims included supporting SMEs and young entrepreneurs, shifting cash-on-delivery orders towards digital payments over time, consumer protection and data privacy. In May 2026, the Ministry of Commerce was reported to have finalised the draft of a second national e-commerce policy, focusing on payment interoperability, logistics, cross-border trade, data privacy and cybersecurity.

The bigger day-to-day change for sellers is tax. Under rules the Federal Board of Revenue issued in 2025:

  • E-commerce sellers must be registered for income tax, and online marketplaces and couriers are not supposed to serve unregistered sellers.
  • Payment intermediaries (banks, gateways and similar) withhold 1% on orders paid digitally.
  • Couriers withhold 2% on cash-on-delivery orders before passing the money on to sellers.

Rates and procedures can change with each budget, so confirm the current position with a tax adviser before you launch. The lower rate on digital payments is another reason to encourage prepaid orders.

Tip: Get your NTN and income tax registration in order before you scale. It keeps your courier and payment accounts running smoothly, and it is much easier to set up early than to fix later.

The real challenges, and how to handle them

COD refusals and returns

Fake or impulse orders that are refused at the door cost you two-way delivery charges and tie up stock. Reduce them by confirming orders by phone or WhatsApp before dispatch, flagging incomplete addresses, and offering a small incentive for prepaid orders.

Logistics and cash flow

Courier coverage, delivery times and how quickly COD cash is remitted all vary. Compare couriers on coverage in your key cities, tracking quality, return handling and remittance schedule, not just the rate card. Our guide to shipping and delivery strategy in Pakistan goes deeper.

Trust

Many shoppers have been burned by “what I ordered vs what I got”. Real product photos, honest descriptions, visible contact details and a clear return policy are your best defences.

Payment onboarding

Setting up card and wallet acceptance involves documentation and verification. Start the process early, and use a platform that already has payment processing built in so you are not running several separate integrations.

A practical launch checklist for Pakistani businesses

  1. Pick a focused starting catalogue. Launch with your best-selling 20 to 50 products rather than everything at once.
  2. Sort out the basics. Register for tax, open a business bank account and secure your domain name.
  3. Choose a hosted platform. Make sure it includes hosting, SSL, payments and inventory in one place.
  4. Shoot proper product photos. Use consistent lighting and backgrounds, and show the product in use where possible.
  5. Set your payment mix. Offer COD plus at least one digital option, and decide whether prepaid orders get an incentive.
  6. Agree terms with one or two couriers. Check coverage, rates, return charges and COD remittance timelines.
  7. Write clear policies. Publish delivery times and charges, returns, refunds and privacy policies.
  8. Install tracking. Set up Google Analytics and the Meta Pixel before you spend on ads.
  9. Launch to your existing audience first. Announce to Instagram followers, WhatsApp contacts and walk-in customers, and fix issues they report.
  10. Review weekly. Track orders, refusal rate, top products and traffic sources, and adjust from there.

How Baselyne helps

Baselyne was built in Pakistan for exactly this market. You get a fully hosted store, including SSL, unlimited bandwidth and 99.98% uptime, with a choice of ready-made themes, unlimited products and product variations. Payments cover Visa and Mastercard plus Cash on Delivery, with built-in payment processing. Inventory management, customer profiles with purchase history, integrated shipping, reports, and Google Analytics and Facebook Pixel support are all part of the platform. If you also sell in person, the Baselyne POS keeps online and in-store sales in one system.

Plans start with the Starter E-Store Plan. Compare options on the pricing page, see everything included on the features page, or start your 14-day free trial. If you’d rather talk it through first, our Karachi team is on the contact page.

Frequently asked questions

Is e-commerce worth it for a small business in Pakistan?

Yes, for most businesses that sell physical products or bookable services. An online store lets you reach customers across the country without opening new branches, take orders around the clock and build a customer list you own. Start with a focused catalogue and a hosted platform to keep costs and risk low.

Do I still need to offer cash on delivery?

For most Pakistani consumer stores, yes. Many shoppers, especially first-time buyers, still prefer to pay cash on delivery. Offer COD alongside card and wallet payments, and encourage prepaid orders with small incentives such as free delivery or a discount.

Do I need to register with the FBR to sell online?

Under rules the FBR issued in 2025, e-commerce sellers are expected to be registered for income tax, and couriers and online marketplaces are not supposed to serve unregistered sellers. Couriers and payment providers also withhold tax on online orders. Check the latest requirements with a tax professional.

Can I sell to customers outside Pakistan?

Yes. Many Pakistani brands sell to overseas Pakistanis and international customers. You’ll need card payments that accept international cards, an international shipping partner and clear pricing, delivery times and customs information for each destination.

How long does it take to launch an online store?

With a hosted platform and a ready-made theme, a basic store can be set up in a day. The real work is preparing product photos, descriptions, prices and policies. Many businesses go live within one to two weeks of starting.

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