Introduction
Largest e-commerce company in Pakistan is a phrase often used by marketers, analysts, or curious consumers to understand who leads the online retail space in Pakistan. In recent years, that title has increasingly been associated with Daraz.pk. In this article, we will analyze why Daraz holds this position, what metrics back it, how the e-commerce landscape is evolving in Pakistan, and what challenges lie ahead.
Why Daraz Is Considered the Largest E-Commerce Company in Pakistan
1. Revenue / GMV Leadership
According to ECDB’s eCommerce industry report, Daraz.pk generated US$ 326 million in GMV (Gross Merchandise Value) in 2024, making it the top e-commerce retailer in Pakistan by that metric.
It surpassed other players like AliExpress and SapphireOnline in that ranking. (Source: ECDB)
Revenue leadership is a key metric in e-commerce because it reflects the total value of goods sold through the platform, showing scale and market reach.
2. Market Share & Brand Recognition
Daraz has become a household name in Pakistan’s online shopping ecosystem. Its wide coverage, advertising, frequent sales (like “11.11” or “12.12” sales), and logistics infrastructure give it a prominent brand edge over smaller or niche players.
3. Category Depth & Catalog Size
While electronics is the biggest product category in Pakistan’s e-commerce market (accounting for about 24% of revenue) , Daraz offers not only electronics but also fashion, beauty, home goods, groceries, and many sub-categories, strengthening its position as a full-spectrum marketplace.
4. Logistics & Operations
A large e-commerce company needs logistics, warehousing, last-mile delivery, and return management. Daraz has invested in logistics partnerships and infrastructure to support timely deliveries across Pakistan, including remote areas.
5. Growth Trends & Competitive Barriers
Daraz shows consistent growth, leveraging network effects (more sellers attract more buyers, and vice versa). New entrants face high capital costs in logistics, marketing, and customer acquisition, making it harder to unseat incumbents.
The Broader E-Commerce Landscape in Pakistan
Pakistan’s E-Commerce Market Size & Growth
- In 2024, Pakistan’s e-commerce revenue was estimated at US$ 5,037 million.
- The projected growth for 2025 is in the range of 10–15%.
- E-commerce penetration (i.e. share of retail sales happening online) still remains low, estimated in the 0-5% range.
These figures show that the market has a lot of runway for growth, meaning the “largest” player today might face new challengers tomorrow.
Top Online Retailers
Based on data from ECDB, the top retailers by GMV in Pakistan in 2024 were:
| Rank | Retailer | Big Category | GMV / Revenue |
|---|---|---|---|
| 1 | Daraz.pk | Fashion & General | US$ 326 million |
| 2 | AliExpress | Global cross-border | (lower than Daraz) |
| 3 | SapphireOnline | Fashion & apparel | (third position) |
Daraz leads among domestic platforms, while AliExpress has strength in cross-border trade.
Consumer Behavior & Conversion Metrics
- The add-to-cart rate in Pakistan’s e-commerce market is about 9.0% to 9.5%.
- The cart abandonment rate is high, around 74.5% to 75.0%.
- These metrics imply that while many users browse and add items, a significant fraction drop off before checkout.
This leakage in the funnel is a challenge to all e-commerce platforms. The largest ones mitigate it by stronger retargeting, simpler checkout flows, and trust mechanisms (reviews, payment security, etc.).
Challenges & Risks Facing the Largest E-Commerce Company in Pakistan
Even a leading position comes with vulnerability. Some key challenges:
Logistics Complexity
Pakistan has varied geography, remote and rural regions, and infrastructure constraints (roads, courier reach). Ensuring coverage and delivery speed everywhere is costly.
Payment Ecosystem
Cash on delivery (COD) is still widely used in Pakistan due to low credit card penetration and trust issues with online payments. Managing COD is riskier (returns, failed deliveries). Platforms must push for digital payments, mobile wallets, and trust signals.
Competition & Disruption
Local niche players (e.g. fashion boutiques, vertical marketplaces) could capture micro-segments with superior specialization or service. Global entrants (with deep pockets) can enter cross-border trade aggressively.
Trust & Return Policies
Consumers often value secure returns, warranties, and after-sales support. The biggest platforms must maintain high standards in these areas to justify their leadership.
Regulatory & Infrastructure Risk
E-commerce depends upon tech infrastructure (internet, mobile connectivity, electricity) and favorable regulation (tax regimes, cross-border trade policies). Any instability can affect business.
To Learn How to Start ecommerce with Pakistan’s leading dropshipping Company Visit “HHC Dropsshipping“.
Future Outlook: Can Daraz Retain Its Title as the Largest E-Commerce Company in Pakistan?
The future depends on a few critical actions:
- Deepening Local Logistics
Building micro-warehouses, regional hubs, or partnering with local couriers can reduce delivery time and cost, pushing Daraz ahead. - Payment Innovation
Promoting “DarazPay” or facilitating UPI, mobile wallets, or BNPL (Buy Now, Pay Later) can reduce reliance on COD and improve conversion. - Marketplace & Seller Ecosystem
Encouraging more sellers (including small & rural) to use the platform helps fill product gaps and broaden reach. - Customer Experience & Retention
Investments in UX, easy returns, loyalty programs, and trust mechanisms. - Data Analytics & Personalization
Using consumer behavior data to optimize marketing, recommendations, and inventory.
Given Pakistan’s low base of e-commerce penetration (0–5% share), there is much room for growth. Thus, while Daraz is currently the largest e-commerce company in Pakistan, it must continuously evolve to defend its position against agile competitors and shifting consumer expectations.
Conclusion
When someone searches for largest e-commerce company in Pakistan, the answer today is Daraz.pk, backed by leading GMV figures, comprehensive product offerings, logistics coverage, and brand dominance. But the landscape is still maturing. With Pakistan’s e-commerce penetration still shallow, the title is not permanently secured. To stay on top, Daraz must invest in infrastructure, payment systems, trust, and innovating the customer journey.