How to Start an E-commerce Business in Pakistan (2026 Guide: Tax, COD, Couriers & First Orders)

A cousin starts selling shoes on Instagram. A neighbour opens a Daraz store. A colleague "does dropshipping" and never explains how. If you've watched all this and thought, why not me, you're in crowded company: industry associations say there are more than 100,000 micro and small online sellers active in Pakistan. Learning how to start an e-commerce business in Pakistan has never been easier on paper. In real life, what trips people up isn't building the store. It's tax registration, cash on delivery, slow couriers and returns. So this guide goes through everything in the order you'll actually run into it.

The short version, if you're in a hurry

• Pick a product you can source reliably and still profit on after courier fees, returns and tax.
• Get an NTN from the FBR before you start. Marketplaces and couriers are not supposed to serve unregistered sellers.
• Start on one channel only: Daraz, social media, or your own website.
• Expect most of your orders to be cash on delivery, and keep enough cash aside to survive slow payouts.
• Test with a small batch of stock first, then reorder based on what actually sells and what actually comes back.

Is it still a good time to start selling online in Pakistan?

Yes, but it isn't the easy money that some YouTube thumbnails suggest. The market is mobile-first, with seller-side reports putting the share of online transactions started on smartphones at 75 to 80 percent. Online shopping is still a small slice of total retail (under 5 percent by one estimate), which leaves plenty of room to grow. Daraz is the biggest marketplace by a distance, and Eid is the busiest shopping season.

The catch is trust. Many Pakistani buyers worry about fraud, so they prefer paying only when the parcel is in their hands. That single habit shapes almost everything about running a shop here, as you'll see further down.

Choose what to sell before you choose where to sell

Most beginners do this backwards. They open a store first and then go hunting for a product. Reverse it. A good first product usually has a few things going for it: you can get it again and again from the same supplier, it's easy to pack, it doesn't break easily, and the margin still looks healthy after you subtract courier charges, a few returns and tax.

Be careful with products where fit and size matter, like shoes and clothes. They're popular, but sizing leads to returns, and every return costs you shipping both ways.

There are three common ways to get stock:

• Local wholesale or manufacturers. Faster, easier to inspect, and easier to reorder. Good for a first test.
• Importing, for example from Alibaba. Better prices at volume, but longer waits, customs paperwork and more money tied up.
• Dropshipping. Little money needed upfront, but margins are thin, and customers blame you when the supplier is late.

Some categories also come with extra rules. Food, for instance, falls under the Pakistan Food Authority, and cosmetics need extra care with labelling and approvals. Check before you stock up, not after.

Paperwork first: NTN, tax and what changed in 2026

This is the part most blogs skip, and it's the part that can freeze your bank account later.

Under the FBR's e-commerce rules, online sellers are required to register for income tax. Since 1 July 2025, online marketplaces and couriers are not allowed to serve unregistered sellers. Getting an NTN is free and done online through the FBR's IRIS portal using your CNIC. Business reports at the time said one-time sellers and women selling from home would be exempt from the mandatory registration, but the details can change, so confirm with the FBR or a tax professional rather than assuming.

Then there's tax at the point of sale. When you sell through a courier on cash on delivery, the courier deducts 2 percent before passing the money to you, and payment gateways do the same on prepaid orders. For smaller sellers this has been reported as a final tax, which makes it simple but not refundable. Reports on the 2026-27 budget also say that 18 percent sales tax is now charged on the retail price for some categories that are very popular online, including footwear, cosmetics, bags and baby products. If you sell any of these, check the rule for your exact product and work it into your pricing before you launch.

A couple of practical points. You can start as a sole proprietor and register a company with the SECP later, when you have partners or real volume. Keep a separate bank account for the business from day one, and save every courier statement. If you're not sure about any of this, one hour with an accountant is cheaper than one FBR notice.

Daraz, Instagram or your own website? Pick one to start with

My suggestion is to treat the first one as an experiment. Many sellers start on social media to prove the product sells, move to Daraz for volume, and build their own site once they have repeat customers. Doing all three in month one usually means doing all three badly.

The cash-on-delivery problem nobody puts in the thumbnail

Cash on delivery still rules Pakistani e-commerce. Depending on who is counting, estimates for its share of online orders range from about 55 percent to over 90 percent. It makes buying easy, but it makes selling harder in three ways.

First, money moves slowly. Sellers report couriers holding COD cash for 14 to 21 days after delivery, so a store can look profitable on paper while the bank account is empty. Second, returns hurt more. A refused parcel means you've paid for shipping in both directions and earned nothing. Third, fake or impulsive orders happen, and you only learn that at the door.

What helps in practice:

• Call or message to confirm every order on WhatsApp before it ships.
• Ask for a small advance on expensive items.
• Offer a Raast bank transfer option with a small discount, since it's instant and cheaper than many gateways.
• Keep enough working capital to restock while your last two batches of cash are still with the courier.
• Track your return rate from week one. If it's creeping up, fix the product or the listing before you scale.

Couriers and packing: the unglamorous middle

Your courier is the face of your business. To the customer, a late or crushed parcel is your fault, not TCS's or Leopards'.

TCS is the courier most online retailers in Pakistan offer, and M&P, Leopards, Trax and others are also common. Don't pick one on price alone. Test two or three with small orders and compare delivery time in the cities your customers live in, how fast they settle COD money, and how they handle returns. If you sell on Daraz, you can also use its own delivery network instead.

Pack as if the parcel will be dropped, because it might be. Take a photo or short video of every order before sealing it. The first time a customer claims the box was empty, you'll be glad you did. And plan for Eid: couriers get overloaded, so order your stock and tell customers about delays early.

How to get your first 100 orders

Facebook and Instagram are where most Pakistani online shops find their first buyers, with TikTok growing quickly. You don't need a big budget at the start. You need proof that strangers will trust you.

• Show the real product. Clear photos, a short video, and honest descriptions beat polished stock images.
• Make trust visible. Put your return policy, WhatsApp number and delivery times where people can see them. Post real customer messages and unboxing videos, with permission.
• Time your stock. Eid al-Fitr and Eid al-Adha are the biggest shopping moments, so have inventory ready weeks ahead, not days.
• Spend on ads only after something sells organically. Then start small, and measure what each order really costs you.
• Don't race to the bottom. A discount that kills your margin doesn't build a business, it just builds a pile of busy orders.

Mistakes that quietly sink new online stores

• Ordering a huge batch of stock before testing demand.
• Ignoring tax registration and hoping nobody notices.
• Counting the sale price as profit, without subtracting courier fees, returns, packaging, ad spend and tax.
• Promising delivery times the courier can't keep.
• Selling on three platforms at once with no system to track stock.
• Mixing business and personal money in one account.

Your first 30 days, week by week

1. Week 1: Decide and register. Shortlist two or three products, check the margins honestly, and get your NTN and a separate bank account.
2. Week 2: Source and test. Order a small batch from one or two suppliers. Check quality yourself, take your own photos, and write the listing.
3. Week 3: Launch on one channel. Open your shop on Daraz, Instagram or your own site. Set up order confirmation by WhatsApp and test two couriers.
4. Week 4: Review the numbers. Look at orders, returns, courier delays and real profit per order. Fix the weakest link, then decide whether to reorder, change the product, or add a second channel.

Questions new sellers keep asking

How much money do I need to start an e-commerce business in Pakistan?

It depends on what you sell, but it can be a lot less than most people expect if you test with a small batch. Your main costs are your first stock order, packaging, store or platform fees if any, and some ad budget. NTN registration itself is free. Keep extra cash aside for slow COD payouts.

Do I need an NTN to sell online?

For most sellers, yes. The FBR requires online sellers to register, and marketplaces and couriers are not supposed to serve unregistered ones. Check the latest exemptions with the FBR or a tax adviser.

Can I run an online store from home?

Yes, and many Pakistani sellers do. You'll still need the registrations above, a space for stock and packing, and a reliable courier pickup.

Is Daraz or Shopify better for a beginner?

Neither is better for everyone. Daraz gives you buyers but takes a cut and sets the rules. Shopify gives you control but you have to bring the customers. Many beginners start on social media or Daraz first and add a website later.

Is dropshipping worth it in Pakistan?

It can work for testing products with little money, but margins are thin, delivery depends on someone else, and COD returns still cost you. Treat it as a way to test, not as a shortcut to easy income.

Before you place that first stock order

Almost every successful Pakistani online seller started small, got a few things wrong, and fixed them quickly. Your first batch isn't meant to make you rich. It's meant to teach you what sells, what comes back, and what your real margin is. Do that with a modest order, keep your paperwork in order, and you'll already be ahead of most people who "started something online" this year.

Have you started selling online in Pakistan, or learned something the hard way about couriers, COD or tax? Write about it and share your voice with THE OPINIONS. This platform exists for the voices that deserve to be heard.

Note: Tax rules, marketplace policies and courier rates in Pakistan change frequently, so always confirm current details with the FBR, your chosen platform and a qualified tax adviser before relying on them.