Amazon, the world’s largest e-commerce company, has formally added Pakistan to its approved sellers’ list. The development was confirmed by Adviser to Prime Minister on Commerce Razak Dawood.
Pakistan was the only South Asian nation that was not included in the list of 102 countries on Amazon’s platform, despite being one of the biggest manufacturing economies in the region.
Amazon.com is world’s largest retailer and services provider. It is a widespread internet-based enterprise that sells books, movies, electronics, toys, housewares and a variety of other goods either directly or through a third party retailer. Let’s have a look at the impact of Amazon on Pakistan’s economy.
What does it mean?
Pakistan has finally bagged a position in the Amazon-approved selling countries. After being added to the list, Pakistani merchants will be able to sell their products on the platform with ease.
However, this does not mean much for Pakistani consumers; it will mostly benefit Pakistan-based merchants that want to sell their products abroad. Amazon can enable your business to build a large customer base. You will now be able to deliver to more than 100 countries in the world.
The potential of Amazon
Founded by Jeff Bezos in 1994, Amazon is now a titan of e-commerce, logistics, payments, hardware, data storage, and media. Its Web services business includes renting data storage and computing resources, “cloud computing,” over the Internet.
By the end of 2018, Amazon’s delivery infrastructure included more than 180 warehouses, 28 sorting centers, 59 local package delivery stations, and 65 hubs for its two-hour Prime Now (express) deliveries.
Amazon is considered to be one of the ‘Big Four’ of technology along with Google, Apple, and Facebook due to its market capitalization which crossed the trillion mark in September 2018.
The company also owns a publishing arm, a film and Television studio, produces consumer electronics such as Kindle e-readers, and tablets, and is the world’s largest provider of cloud infrastructure services.
Impact of Amazon on Pakistan’s Economy
Amazon had added Pakistan to its list it means that there will be a huge trade going on in Pakistan through this platform. Amazon offers products at a much lower rate than the other retailers. This serves as a bridge between consumer purchases and sales.
The enablement of Amazon in Pakistan is a positive step in bridging the businesses to international retail. In US alone amazon generates 23.1% revenue of web purchases. Even in 2020, the revenue hyped up to 26%. If we implement this revenue scenario in Pakistan, then there will be a huge revenue generated through the online purchases of Amazon.
Pakistan is currently facing inflation.. Amazon has broken the traditional trade market and without any front store it is selling products at much lower rates. This gives it an advantage to have a thinner profit margin and break the rivals at lower prices. This inflation rule is completely applicable in Pakistan because retailers will have a huge platform for trading, also enough employment will be provided therefore the inflation rate will decrease.
Jobs at Amazon
Amazon offers millions of jobs every year worldwide. These jobs have different modes i.e, part-time, full time, contract-based. So by addition of Pakistan to the Amazon list will create jobs for capable individuals. Thus, Pakistan will experience an economic progression.
