E-Commerce in Pakistan 2026: How to Start, What Sells, and How to Scale

Pakistan's e-commerce market crossed an estimated $8 billion in 2025 and is growing at a rate that consistently surprises observers. Despite infrastructure challenges, fragmented logistics, and a largely cash-based consumer culture, online commerce is growing rapidly across product categories. Here is a practical guide to starting and building an e-commerce business in this specific environment.

The Platform Decision: Daraz vs Your Own Store

The most important decision for a Pakistani e-commerce business is where to sell. Daraz, the dominant marketplace owned by Alibaba, provides access to a large customer base, integrated payments, and a logistics network. The downsides are high commission rates (typically 8 to 15 percent depending on category), intense price competition, and the risk of your products being commoditised alongside dozens of similar listings. Your own store, built on Shopify or WooCommerce, requires more marketing effort to drive traffic but offers higher margins, full customer relationship ownership, and brand building potential. Many successful Pakistani e-commerce businesses use both in combination.

What Product Categories Work

Pakistan's e-commerce market has clear winners. Clothing and fashion, including abayas, kurtas, and modest wear, is the largest product category by volume and value. Electronics accessories and mobile phone accessories are high-volume but intensely competitive. Home décor and artisanal products have done well for sellers who can differentiate on design and quality. Health and beauty products have seen significant growth. Categories that work less well online in Pakistan: food (logistics challenges), large furniture (delivery complexity), and high-value electronics (trust and warranty concerns).

Logistics: The Core Operational Challenge

Delivery in Pakistan is the most operationally challenging aspect of running an e-commerce business. Cash on delivery (COD) accounts for over 80 percent of transactions — which means your cash is tied up in delivered inventory until the courier collects payment and remits it, typically on a weekly cycle. Return rates on COD orders can be 20 to 40 percent, which is much higher than prepaid orders. Building relationships with multiple courier companies and negotiating good return rates is essential.

Payment Infrastructure

Pakistan's e-commerce payment environment has improved significantly. Easypaisa and JazzCash integration is essential for reaching customers who do not have traditional bank cards. Bank card acceptance via Stripe or local payment gateways is available but penetration is still lower than COD. Building COD operations efficiently while encouraging prepaid payments through discounts is the standard approach.

Customer Acquisition

Facebook and Instagram advertising remains the dominant paid channel for Pakistani e-commerce, reaching both urban and semi-urban consumers effectively at relatively low CPMs compared to Western markets. TikTok is growing rapidly as a discovery channel, particularly for fashion and lifestyle products. For a full picture of the startup ecosystem that supports e-commerce growth, see our analysis of Pakistan's startup scene.