Are you geared up for the Amazon-lution?
With the news of the e-commerce giant Amazon being launched in Pakistan, it’s safe to assume that a digital revolution is about to hit Pakistan. And though this is exceptional news for consumers, questions arise about the consequential impact this would have on local markets, social media platforms, and Pakistan’s online markets. Businesses are asking themselves questions from the most basic such as “how to open selling account on amazon” to how can amazon influencer marketing be leveraged.
How far along is the process?
While this US-based multinational corporation, Amazon, is amidst the process of registering Pakistan’s commodities’ retailers it is better to understand that the company is focused on e-commerce, cloud computing, digital streaming, and artificial intelligence, and has already communicated a list of 38 exporters for registration.
Several companies in the list are from the surgical and sports merchandise sector and home textile sector. Mr. Abdul Razak Dawood, Adviser to the Prime Minister on Commerce and Investment, stated that in future after a successful trial of the shortlisted firms, the list will grow and will include companies from other commodities’ sectors. Furthermore, he asserted that as a result of the Covid-19 pandemic, the significance of e-commerce had augmented manifold making it an exceedingly essential sector of the economy. He also highlighted the importance of allocating resources towards the virtual economy while connecting small-scale and medium enterprises (SMEs) with worldwide e-services to have modern market opportunities.
Moreover, Representatives of the Consumer Protection Councils of Punjab and Lahore and the Consumer Rights Commission of Pakistan announced that according to the e-commerce regulations, the national and regional consumer legislation was being revised to encompass e-commerce and address the conflicts emerging from the sector. Also, the Securities and Exchange Commission of Pakistan (SECP) also reported that numerous new actions were being arranged to encourage e-commerce so as to include an independent sector categorization for e-commerce.
Amazon > Traditional E-commerce
If sellers are following Amazon’s rules and guidelines, then revenue is guaranteed to be generated. The website’s numerous monthly users comprise of such a considerable number of consumers that it is practically impossible to ignore the tremendous advantages of the broad exposure. Due to Amazon’s product cataloging operation, it assures that your reserves become the most suitable location for an Amazon consumer to discover your product. Your firm will additionally benefit from the immense investment of Amazon into the paid Google search.
- Worldwide Exposure
Being an international, reputable, and trustworthy brand, Amazon provides firms the prospect to enlarge their propositions into various markets. It presents companies with the opportunity to go beyond their limited regional geographical location and expand their reach to other parts of the world where there are limitless customers who are enthusiastic and keen to purchase from the international market.
- Customer Acquisition
The most favorable notion about e-marketplaces is that consumers do not employ them to search for a particular brand or company; rather they employ the service to discover a specified commodity. Consequently, it becomes more possible to pique the interest of new and distinctive customers.
- Greater Marketing Outreach
Through algorithms and software, marketplaces expand your marketing capacity and product visibility. If you choose go your own way, you are eliminating a large market that could transform into your target market, which is both local and international.
- Credibility and reliability
Amazon has a transcendent reputation and is credible and trustworthy. If your e-commerce website is comparatively new, niche, and unpopular, customers may question your credibility, reliability, and have suspicions of the platform about its true or fraudulent nature. Amazon would combat this issue, as they have already substantiated committed connections with worldwide audiences and a consumer base. Hence, comparatively, social media sellers and e-commerce startups do not have this degree of support and assistance.
At the end of the day, this venture is a considerable investment in the Pakistani economy since Amazon will enable consumers to have a widespread and vast range of choices, and giving companies a competitive platform to sell their products. With the lack of competitiveness and advertisement opportunities in brick and mortar businesses, Amazon will facilitate Pakistan to pave the way ahead for the e-commerce industry.