Impact of COVID-19 on Online Retail in Pakistan

The outbreak of COVID-19 as a global pandemic has affected the lifestyle of humankind like never before. While the world was dealing with this nuisance by taking measures like quarantine and lockdown, the economic crisis followed. The businesses suffered severe setbacks. The consumer abruptly stopped buying any items in the face of uncertainty. Shortly, people adapted to safety norms and began to refrain from going out unnecessarily, avoiding exposure to the rapidly communicable lethal virus. The general public grew interested in using technology for buying and selling. To study consumer behavior during the COVID-19 peak period, we conducted a demographic survey to study the online shopping behavior of an average Pakistani consumer. Our study can help affected businesses take the necessary steps to restore their economic status. It may also benefit new domestic businesses to pitch in with better chances to survive the online market with the affordable electronic advertisement of their services and products using social platforms. In our study we analyze the implications of gender or age in making decisions regarding online shopping before and during the pandemic period. The study concludes that people have a more positive attitude towards online shopping despite many underlying risks, for instance, receiving a damaged or unexpected product, delayed deliveries, or trust issues in case of e-payments, etc. Our work provides a basis to understand how e-commerce in Pakistan can be improved amidst challenges like immobility due to lock downs.