Amazon eyes expansion in Pakistan e-commerce market

[Quibbler]

There was another recent thread about this and I'll say what I said there, I hope Pakistan gets Amazon.

I'm also a bit biased, because I have an Amazon store card and have used it semi often

I realize I take it for granite because there are other people around the world who don't have access to Amazon

Rick and morty reference?

 

[ghazi52]

Pakistan added in Amazon's approved seller list

Ministry of Commerce, Pakistan has reportedly got the approval from Amazon to Register Pakistan in the verified Amazon seller list.

New updated countries list will be published on Amazon official website in next 12-24 hours.

Ministry of commerce representative says, this could bring great export potential in Pakistan as the sellers from Pakistan could directly register with their local details and sell local products on Amazon.

Source: Extreme Commerce

 

[ghazi52]

PM welcome Amazon to Pakistan.

 

[Sifar zero]

We will see when it happens... until then keep quiet

Haan bol ab kia keh raha tha?

 

[gangsta_rap]

I'm also a bit biased, because I have an Amazon store card and have used it semi often

You are biased because of your white privilege
Having an amazon store card is what privileged white folks like to wave around

 

[ghazi52]

Amazon Comes To Pakistan

25 May, 2021
Imtiaz Noor


How will Pakistan’s addition to Amazon’s seller’s list impact its e-commerce landscape?

Amazon.com,

Amazon.com, one of the largest e-commerce retailers in the world, added Pakistan to their sellers list last week. This is a major development as for any economy that is aspiring to grow, there are two key verticals that are relatively easy to initiate from an export perspective: Services (freelancers, software companies etc) and goods – (exports of products to international markets); Amazon falls into the latter category.

Amazon has a gross merchandise volume (GMV) of over $450 billion, which is almost twice that of Pakistan’s GDP, and several companies have registered four to five billion dollars in sales at Amazon. For context, Pakistan’s IT exports amount to less than two billion dollars. In contrast, India’s exports are valued at two billion dollars per annum through approximately 70,000 unique sellers; anywhere between 750,000 and one million people are deriving value from these exports be they direct employees, premises rentals, transporters, small services providers for whom these 70,000 businesses are customers.

Allowing Pakistani sellers to join Amazon’s network was not a simple task by any means. The process began when the First National E-commerce Policy was approved in 2019, by virtue of which the National e-commerce Council was formed, which reported directly to the Prime Minister about developments in Pakistan’s e-commerce landscape.

During one of the consultative sessions that took place in Islamabad in December 2019, Aisha Moriani, Joint Secretary for the Ministry of Commerce, and Badar Khushnood, Member NeCC (National E-commerce Council) and Co-founder, Fishry.com, decided to take it upon themselves to try and initiate the ‘Amazon connection’. The Pakistan Consulate in Los Angeles was engaged due to its proximity to Seattle (where Amazon’s headquarters are located) and a search began for experienced individuals of Pakistani origin to facilitate the process.

As a result of this search, Omer Gajial was identified. Gajial has experience with major global corporations and more importantly, he spent almost five years at Amazon in senior management roles, and helped kick off conversations with between Amazon and the Pakistan Consulate and the team dedicated to this task. Thus, Amazon decided to allow a one year trial for 30-40 Pakistani companies.

“This is a great milestone for public-private joint efforts with a laser-sharp focus on e-commerce. Amazon's addition of Pakistan in their sellers’ list will go a long way in growing Pakistan's small-packet micro-exports by SMEs, women entrepreneurs and start-ups. Sellers and exporters now need to add a B2B2C element to their business models and sharpen their skills for online selling with a very data-driven scientific approach,” opines Khushnood.

Meanwhile, the Adviser to Prime Minister on Commerce and Investment, Razak Dawood, says, “The Ministry of Commerce will continue discussions in Focus Groups for Amazon which will include sellers, logistic companies, various ministries and the State Bank of Pakistan to further guide Pakistan’s business community with regard to how to make best use of this opportunity. In order to reap the full benefits, a lot of hard work has to be done in training, quality assurance, improvement in logistics, payment systems, customer relationship management, etc. I encourage young entrepreneurs to train themselves in this regard and strive for continuous product improvement as a long-term continuous endeavour.”

The registration process is simple and can be completed within minutes; however, it is advised that all sellers (businesses as well as individuals) intending to register, sign up for Amazon Seller University courses first to familiarise themselves and their respective teams about the processes and quality control regulations that they must adhere to. A second option would be to partner with companies that have the requisite expertise.

Payments for all sales taking place on the Amazon platform will be sent directly to designated Pakistani bank accounts listed at the time of registration and these will qualify as export based earnings for those businesses (and attract the relevant tax incentives where applicable).

Unfortunately, only the seller side of the Amazon Marketplace is currently open to Pakistan and not the buyer side. So businesses will be able to export from Pakistan, but individual customer based imports are not yet available.

Now that these gates are about open, it is up to our industrialists and business owners to meet the standards and benchmarks set by Amazon.

 

[Samlee]

There should be competition between AliBaba & Amazon in Pakistan.

Alibaba Owns Daraz.pk So There Will Be

 

[ghazi52]

Will Amazon Help Boost Pakistan's Exports?

Global e-commerce giant Amazon has recently added several dozen Pakistani exporters to its approved list, according to Eric Broussard, vice president of Amazon International Seller Services. "We are excited to announce that as of today, Pakistani entrepreneurs are eligible to sell on Amazon. We are eager to work with Pakistan's dynamic business community, including small and medium-sized sellers and help connect them with customers around the globe," he said.


Amazon Global Market place.

Amazon e-commerce platform has global reach. As of March 2021, Amazon Marketplace operates and sells 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. It boasts 200 million members for its Amazon Prime program that offers fast free shipping and other benefits, including Prime Video streaming for a fixed annual fee. The company hosts millions of sellers from over 100 countries on Amazon Marketplace. Over 7,000 Amazon-listed sellers from Pakistan's neighbor India have exported goods worth over $3 billion since 2015.

It has taken the combined effort of thousands of Indian sellers more than 5 years to achieve $3 billion in cumulative sales, indicating that it will take Pakistani sellers a lot of hard work and time to grow their business. But Amazon e-commerce platform does offer great potential for Pakistani manufacturers and merchants to grow their sales.

Amazon currently owns about 33% stake in Pakistani e-tailer Clicky.pk through its acquisition in 2017 of Dubai-based online retailer Souq. Souq acquired this stake in the Pakistani company in late 2016. Amazon operates in South Korea through a partnership with SK Telecom.

There is already a cottage industry of gig workers that has sprung up in Pakistan to support merchants who have been unofficially selling products on Amazon Marketplace. These Pakistani merchants have 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.

To become successful on Amazon Marketplace, Pakistani exporters will need to select and learn a lot about their target countries/markets and customer preferences. They will have to design, build or choose products that are in great demand in their target markets.

Initially, Pakistani exporters will likely need to establish a significant inventory of fast-selling products at Amazon warehouses in the United States and use FBA (Fulfillment by Amazon) service to provide quick delivery to Amazon Prime customers. Pakistan exporters will also have to ensure quality to satisfy these customers and avoid negative online reviews.

Listing of Pakistani sellers on a global e-commerce platform is good news but it is only the first step toward becoming successful exporters. A lot more investment, attention and hard work will be necessary to realize its full potential.

 

[ghazi52]

SBP proposes framework to facilitate exporters in selling products on digital marketplaces

Dawn.com
June 14, 2021

The key amendments proposed include a framework for facilitating Pakistani exporters to sell their products through international digital marketplaces including Amazon, e-Bay and Ali Baba, the State Bank of Pakistan said.



The State Bank of Pakistan (SBP) has proposed a framework for facilitating Pakistani exporters to sell their products through international digital marketplaces.

In a press release issued on Monday, the central bank said it had proposed changes in its regulatory instructions for exporting goods from Pakistan with the agenda of modernising foreign exchange regulations.

It added that the changes were aimed at promoting ease of doing business by simplifying existing instructions.

"The key amendments proposed include a framework for facilitating Pakistani exporters to sell their products through international digital marketplaces including Amazon, e-Bay and Ali Baba under business to business to consumer (B2B2C) e-commerce model," it said.

Amendments required in export regulations to implement the Pakistan Single Window Project, which would eliminate the requirement of an electronic Form-E, are also part of the revised draft, it added.

"Regulatory approvals required from SBP have been proposed to be delegated to banks to facilitate the business community. The proposed changes are a part of SBP’s broader agenda to revise existing foreign exchange regulations to align them with the changing market dynamics, business needs and global trade practices," the central bank said.

As a part of this process, 11 chapters of the Foreign Exchange Manual have already been revised through a consultative process with the banking industry and the business community, it added.

The latest amendments in foreign exchange instructions pertaining to exports are provided in chapter 12 of the manual. The document has been uploaded to SBP’s website and can be accessed here.

Last month, e-commerce giant Amazon had added Pakistan to its sellers' list.

In a tweet announcing the development, Adviser to the Prime Minister on Commerce, Textile and Investment Abdul Razzaq Dawood said: "It is a big accomplishment for our e-commerce and will open up vast opportunities for a new breed of young men and women entrepreneurs. We congratulate everyone involved."

 

[Jobless Jack]

rather than Invite amazon. Pakistan should start something similar to amazon. why give own market to someone else .?

 

[ghazi52]

Pakistanis eager to launch businesses on Amazon despite strict rules, tough competition

Between hype and reality

Azfar-ul-Ashfaque
June 28, 2021

There are two types of sellers’ accounts on Amazon — professional and individual. — Reuters/File

YOUNG Musaf Hanif, a software developer working with a start-up that provides ecommerce solutions and digital consultancy in Karachi, is very busy these days. Following the last month’s announcement that ecommerce giant Amazon has added Pakistan to its sellers’ list, several people have been approaching him and his firm with a similar question i.e. how fast they could launch a business on the mega online retail platform.

“Every day I encounter people who are eager to make a seller’s account on Amazon but got no idea that it isn’t free,” says Hanif while referring to the hype the Pakistan Tehreek-i-Insaf government has created on social media about Amazon. “No doubt there is a great potential but people should understand making an Amazon sellers account and choosing a target market to sell their products is not easy because of strict rules as well as tough competition.”

There are two types of sellers’ accounts on Amazon — professional and individual. For a professional account, Amazon charges $40 monthly fee and the amount got charged from the credit/debit card of the account holder as soon as the account got approved. The individual account is for those who are going to sell less than 40 items per month and Amazon charges $0.99 per item sold.

“Ninety per cent of people have no knowledge of this and those who are aware of basic things do not know that becoming an Amazon seller requires a trademark, product licence, registration, patents, etc, as its rules about intellectual property and piracy are very strict,” he says, adding that if by chance they knew about this then they lack knowledge about their target market and that which method of selling would suit them best.


Different selling methods

Hanif was referring to the two methods of selling on Amazon — Fulfilment by Amazon (FBA) and Fulfilment by Merchant (FBM). The FBA method allows a seller to send his/her product to an Amazon warehouse for shipping, while in the FBM mode a seller is responsible for the storage and shipping of all his orders.

Currently, Amazon has no warehouse in Pakistan for its FBA method. It has so far not entered into any agreement with any third party, but some reports suggested that the ecommerce giant is considering making the Pakistan Post and some other courier companies as its shipping partners.

In the wake of Covid-19 restrictions on businesses across Pakistan, medium and small companies are taking interest in setting up their websites to first sell online in Pakistan and then take it to the next level i.e. to sell their products on Amazon and other similar platforms.
But Hanif says big companies are also thinking on the same lines. A major textile exporter, he says, is also planning to launch a web store on Amazon to directly cater to the need of foreign retail buyers in addition to his export business. “They have been working on a B2B model but now they want to use Amazon for a B2C venture. We may soon see many B2B export companies on Amazon’s B2C market.”

The ExpoBird startup, with which Hanif is associated, is not alone in offering tech services to its clients for Amazon. Already several organisations across the country have been offering similar services and some of them also introduced Amazon FBA and FBM training courses for people. They have been charging a handsome amount ranging from Rs25,000 to Rs50,000 for a three-month course.

At the official level, the Trade Development Authority of Pakistan (TDAP) and Small and Medium Enterprise Development Authority (SMEDA) are offering training courses in collaboration with major private firms to those interested in becoming a seller on Amazon.


‘A cumbersome process’

Before the recent Amazon’s decision for Pakistan, some Pakistani individuals/firms having connection in the US set up LLCs there to make an Amazon account for selling textile, sports, leather, surgical goods, household items, etc.

Despite not having such overseas connections, thousands of people, including housewives, are actively engaged in online business and have been selling their products — mainly stitched, unstitched clothes, leather garments, handicrafts, etc, — and earning good money.

The most popular platform is Facebook, which unlike Amazon is completely free, where most of them are using their smartphones to take pictures of their products, getting orders and providing customer care.

For sure, almost all of them would be interested in making an Amazon account to expand their businesses, but there are certain complications that may restrict them to Facebook for now.
Sabeen Nayyer is a housewife who occasionally designs and sells clothes to her overseas acquaintances. She was very excited when she learned about Amazon’s entry to Pakistan since she wanted to explore new avenues. But her enthusiasm faded when she came to know that she needed a trademark, licence and registration along with tax details for opening an online store on Amazon.

“I am a housewife and I cannot spare time to visit government departments for obtaining trademark, licence, etc, as I heard it’s a cumbersome process. I am happy with Facebook...seems Amazon is not my cup of tea,” she adds.

However, Amazon and other similar global online retailers are not only providing a business platform, but also giving an opportunity to youths having no capital to work full- or part-time remotely as virtual assistant (VA) with already running business and earn good money. While youths in urban areas enjoy good internet connectivity, the federal government is also working on a plan to improve broadband speed in rural and mountainous areas so that rural people can also avail such online facilities.

Minister for Information Technology and Telecom Syed Aminul Haque says his ministry is not directly related with ecommerce initiatives but he is personally overseeing the project to improve the internet connectivity of rural areas and bring them at par with urban areas. “We have spent Rs31bn in less than two years to provide good connectivity to remote areas and we are in the process of coming towards 4G from existing 2G networks.

The number of mobile phone users increased from 160 million in 2018 to 181m in 2021 while broadband users increased from 70m to 100m,” he says.


The long wait for buyers

Amazon has only added Pakistan to its sellers list but in real sense it is not operational here as only four per cent of its product range is available for local buyers. Hanif hopes the situation will change once Amazon opens its market for Pakistani buyers.

He says people here have been waiting for ages to buy goods directly from Amazon. Today, the shipping cost of few products available for us often surpassed the actual value of goods bought, Hanif says, adding if Amazon comes to Pakistan, it would set up a dedicated website with ‘dot pk’ domain (like it did in India with a ‘dot in’ domain) and make arrangements for product storage as well as shipping to deliver goods at people’s doorsteps.

“This will reduce the existing shipping costs, time, lessen custom duty and other levies and also provides Pakistani retailers an opportunity to do business for locals. The government would also earn revenue from Amazon if it enters domestic market,” he adds.

There’s no denying that Pakistan’s addition to Amazon sellers list is a major success, many believe moves like the one in the Finance Bill 2021-22 to impose a Rs5 per GB internet usage tax will cost heavily the PTI government’s efforts in convincing foreign firms like PayPal, eBay and of course Amazon to launch their operations from Pakistan.

Published in Dawn, June 28th, 2021

 

[ghazi52]

Pakistan Post sets up Amazon facilitation centre

It will help facilitate garments makers, exporters sell different commodities

Our Correspondent
July 04, 2021

LAHORE: As Amazon has opened its platforms for Pakistani sellers, this will help promote businesses and online buyers will get reach to Pakistani brands as they will be able to access all major markets through Amazon, said Pakistan Post Postmaster General Punjab Khawaja Imran Raza.

During a meeting with the delegation of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), Raza informed about the establishment of Amazon Facilitation Centre by Pakistan Post to facilitate garments manufacturers and exporters on behalf of the government to sell different items/commodities like garments products etc worldwide.

He added that Pakistan Post is fully prepared to take advantage of the opportunity provided by Amazon and the department is all set to transport sellers’ consignments from their doorstep to different Amazon warehouses in the world.

Raza also said that e-commerce is the best opportunity especially after Covid-19 pandemic as online buying and selling is increasing rapidly.

“Pakistan Post office has been formally authorised as the delivery partner of global e-commerce giant,” informed PRGMEA North Zone Chairman Adeeb Iqbal Sheikh. “This is being seen as a massive achievement for Pakistan’s e-commerce sector as Pakistani products will now be available to millions of consumers globally,” he added.

The office-bearer said that this move will lead to favourable outcomes for the youth as well as small and medium enterprises (SMEs) to sell on the Amazon platform. “This will add Pakistan sellers into the international market,” he added.


Published in The Express Tribune, July 4th, 2021.

 

[ghazi52]

South Punjab set to get its first Amazon facility

Imran Gabol
July 11, 2021

One-and-a-half months ago, Commerce Adviser Abdul Razak Dawood had announced that e-commerce giant Amazon had added Pakistan to its sellers’ list.


LAHORE: Pakistan Post is set to inaugurate south Punjab’s first Amazon Fulfilment and Facilitation Centre (AFFC) in Multan after Eidul Azha. The facility will provide local handmade and cultural products access to the international market.

One-and-a-half months ago, Commerce Adviser Abdul Razak Dawood had announced that e-commerce giant Amazon had added Pakistan to its sellers’ list. Following the development, Pakistani entrepreneurs became eligible to sell on the platform. Small & Medium Enterprises (SME), youth and women entrepreneurs will have ample opportunities to connect with the global market via the Amazon platform.

A warehouse of e-commerce platform will be set up at GPO Multan

The platform offers Amazon’s 3P model (third party relationship) where retailers sell directly to buyers through the marketplace which serves brand owners. Under Amazon’s 1P model, the marketplace acts as retailers while a brand is the wholesale supplier for mass producers who want to produce for Amazon brand items.

Post Master General (PMG) Zulfiqar Husnain said the opportunity would bring dynamism to the country’s manufacturing sector to compete in the international market.

“Most of the work has been completed on the AFFC at the General Post Office Dera Adda and it would be functional after Eidul Azha. An Amazon warehouse would also be established at GPO Multan. Work was also in progress to set up Amazon centers with warehouses in Bahawalpur, Rahim Yar Khan, Muzaffargarh, Sahiwal and other districts of south Punjab,” he added.

In this regard, the Pakistan Post officials also held a meeting with the Multan Chamber of Commerce and Industry (MCCI) to jointly work to promote local products in the international market.

MCCI president Khawja Salahuddin and others were present in the meeting to discuss working with Amazon.

Mr Husnain said Pakistan Post, MCCI and Amazon should collaborate to increase economic growth in the SME sector. “We would provide state-of-the-art facilities to the business community. Craftsmen would be given the opportunity to promote their products at international level by registering it on Amazon,” he added.


Published in Dawn, July 11th, 2021

 

[ghazi52]

Pakistan is going to set up the first-ever Amazon Fulfillment and Facilitation Centre in Multan just after Eidul Azha.

It is encouraging because having an Amazon centre in the country means the youth and small and medium enterprises (SMEs) will now be able to sell their products to the entire world via Amazon. This will boost exports.

Pakistan’s merchandise exports in fiscal year 2020-21 grew 18% to $25.3 billion from $21.4 billion a year earlier, according to the Pakistan Bureau of Statistics.

However, imports also surged to $56.3 billion from $44.5 billion a year earlier, leading to a huge trade deficit of $31 billion ($56.3 billion minus $25.3 billion).

Managing such a high trade deficit is obviously difficult. Pakistan needs to accelerate exports further and, at the same time, contain imports of luxurious consumer goods.

Amazon has already added Pakistan to its sellers’ list, which means once the Amazon centre in Multan starts working, the youth and SMEs can immediately begin selling their products to the world.

The resultant increase in export earnings will help accelerate the overall growth of merchandise exports and a sustained, high growth in export earnings will help reduce the trade deficit.

 

[Aneeq Rashid]

Amazon and Ali baba are dangerous they kill off local businesses. There presence should be limited