The rise of price comparison services heralds an imminent e-commerce boom

E-commerce companies face a number of hurdles working in a difficult Pakistani market: unfair taxes, lack of cooperative government bodies, and controversial cybercrime bills. Yet, despite it all, the industry is growing at a fast pace.

Pakistan’s ecommerce market is currently worth $60 million, according to a recent self-valuation. Industry analysts predict the market to grow to $600 million by 2018, and to an impressive $1bn by 2020.

This explosive growth is led by huge brands including - but not limited to - Zameen, Uber, OLX, Rozee, Careem, PakWheels, and TCS Yayvo. They understand ‘digital’ is the business frontier of the future; those who do not invest now will become irrelevant later.

Key enablers include the launch of 3G/4G, bringing in 33 million subscribers in a short period of time. 3G/4G adoption is increasing at a steady 1 million subscribers every single month since launching in 2014. Smartphone usage is at an all-time high, too, making up over 50% of all phone imports in mid-2015. Additionally, increasing general awareness of technology is bridging the digital divide thanks to national-scale print and TV ad campaigns from OLX, Zameen.com, and Yayvo.

Looking beyond the big players, one can find even greater positive signs in scrappy ecommerce startups. A recent trend worth observing is the rise of price comparison startups.

Since ecommerce is still a relatively new concept in Pakistan, companies are still learning the balance between customer and business interests. Many online stores sell the same products, but do so over an incredibly wide spectrum of prices, delivery times, warranties, and customer experiences. It is not uncommon to hear tales of poor shopping experiences, which damages user trust.

This is the problem services like PriceOye.pk, PriceMatch, and JustPrice are tackling head on. All three compare prices from trusted online stores in Pakistan, helping consumers instantly find the lowest price for their product of interest.

The PriceOye.pk team claims consumers can save up to Rs. 10,000 if they consult the price comparison website before making their next online purchase. The website currently lists mobile phones from 15+ brands including the popular ones like Apple, Samsung, and Huawei, and those with a more cult following like OnePlus, Xiaomi, and Oppo. They have plans for adding more categories like home appliances, electronics, and more in the near future.

Launched in early 2016, PriceOye.pk is one of the fastest growing ecommerce businesses in the country.

“Tens of thousands of consumers use PriceOye.pk to make great buying decisions, and wer’re growing faster every month” says Awais Imran, co-founder of PriceOye.pk. “We’re generating leads worth hundreds of millions every single month, too. Online stores love us.”

The connection between price comparison and ecommerce

So, why is the rise of price comparison services like PriceOye.pk directly connected to the rise of the Pakistani ecommerce market?

“There is a clear relationship between ecommerce and price comparison all over the world.” says Adnan Shaffi, the second co-founder of PriceOye.pk. “When ecommerce becomes mainstream, consumers require complementary services to make buying and selling of services and products easier.”

Shaffi pointed particularly to similarly budget-conscious markets to the east of Pakistan: India, Thailand, and Indonesia. Enabled similarly by 3G/4G, increasing Internet penetration, and growing awareness of technology, South-east Asian price comparison services grew right alongside ecommerce in their respective countries. Three such services MySmartPrice, Priceza, and PriceArea are immensely popular, drawing tens of millions of customers every month.

Thus, the fact that online shopping is becoming difficult enough to create a market for price comparison shopping services is as good a sign as any for the boom of ecommerce in Pakistan, especially when seen in conjunction with the aforementioned ‘key enablers’.

It is a win-win-win situation for everyone involved in the transaction. The customer can find deals that matches their requirements, online stores receive extra leads which they otherwise would never have received, and price comparison services make a commission on each completed sale.

“This is the best time to start or invest in an ecommerce venture in Pakistan” added Awais. “We are on the brink of a boom that will change landscape of national commerce. Those who are ready when that happens will reap incredible benefits.”