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How to Start an Online Business in Pakistan: A Step-by-Step Guide
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How to Start an Online Business in Pakistan: A Step-by-Step Guide

Abu Bakar Memon

Abu Bakar Memon

Founder & CEO

March 15, 2025

From choosing what to sell to registering your business, getting paid, booking couriers and finding your first customers — how to start an online business in Pakistan the right way.

Starting an online business in Pakistan has never been more realistic. Smartphones are everywhere, couriers reach most of the country, and customers are increasingly comfortable ordering from Instagram, Facebook and websites. What's still missing for most new sellers is a clear order of steps.

This guide is that order — from picking what to sell to your first hundred customers. It assumes a small budget and no technical background.

Step 1: Pick What You'll Sell

The best first product sits where three things overlap:

  • You understand it — you know the quality, the suppliers and the customer.
  • People already buy it online — search Instagram, Facebook Marketplace and Daraz for it. Competition is a good sign; it proves demand.
  • It ships well — light, hard to break, and not too cheap. Low-priced items struggle once delivery and COD charges are added.
  • Categories that work well for new Pakistani stores include women's clothing, artificial jewelry, home textiles, skincare, mobile accessories and home-made food in your own city. See our list of online business ideas in Pakistan for 25 options with startup costs.

    Step 2: Test Demand Before You Spend

    Don't buy a big batch first. Instead:

  • Buy a small quantity, or take orders before buying (pre-orders work well for clothing).
  • Post the product on your WhatsApp status, Instagram and relevant Facebook groups.
  • Run a small ads test — a few thousand rupees is enough to see whether strangers click and ask about price.
  • If people message to ask "price?" and "COD available?", you have something.

    Step 3: Sort Out Sourcing

    You have three main options:

  • Make it yourself — food, crafts, stitched clothing. Highest margin, limited by your time.
  • Buy wholesale — from wholesale markets such as Jodia Bazaar in Karachi or Shah Alam Market in Lahore, or directly from manufacturers. Better margins at volume.
  • Resell without holding stock — some suppliers will ship to your customers for you. Lower risk, but lower margins and less control over quality and delivery time.
  • Whatever you choose, check samples yourself. Your store's reputation depends on the quality of every parcel.

    Step 4: Register When It Makes Sense

    You can start selling as an individual, but registration becomes important as you grow — especially for a business bank account and online payment gateways.

  • Sole proprietorship is the simplest structure for one owner.
  • NTN (National Tax Number) can be obtained free through FBR's IRIS portal, and most banks and payment providers ask for it.
  • A business bank account keeps your money separate and is usually required for merchant accounts.
  • A private limited company (registered with SECP) makes sense if you have partners or plan to raise investment.
  • Tax rules change, so speak to a tax adviser about sales tax and income tax for your situation.

    Step 5: Decide How You'll Get Paid

    Start with cash on delivery. Most first-time online buyers in Pakistan prefer it, and it needs no approval from anyone. Add online payments — wallets like Easypaisa and JazzCash, or card payments through a local gateway — once you have regular orders and a registered business. Read our breakdown of payment gateways in Pakistan before you apply.

    Step 6: Set Up Delivery

    Open a merchant account with a courier such as TCS, Leopards, PostEx, Trax or M&P. They'll pick up from you, deliver, collect the cash, and remit it to your bank account.

    Before you sign up, ask about delivery charges by city and weight, COD remittance frequency, and the charge for returned parcels. Returns are a normal part of COD — plan for a few percent of orders coming back.

    Step 7: Build Your Store

    You can start on Instagram or WhatsApp alone, but a website gives you three things social media can't: a full catalog customers can browse, a checkout that takes orders while you sleep, and a link that looks like a real business.

    The choice is usually between selling on a marketplace like Daraz (built-in traffic, but commission and little control over your brand) and your own website (your brand, your customers, no commission). Many sellers do both.

    Building your own store no longer needs a developer. Follow our step-by-step guide on how to make an e-commerce website in Pakistan.

    Step 8: Get Your First Customers

    Your first 10 orders will come from people who know you — friends, family, colleagues and WhatsApp contacts. Ask them to share. After that:

  • Post consistently on Instagram and Facebook, with Reels showing the product in use.
  • Join Facebook groups where your customers spend time.
  • Run small, targeted ads and scale what works.
  • Ask every happy customer for a review and a photo.
  • Our marketing strategies for small online stores and first 100 sales guides go into detail.

    Step 9: Run It Like a Business

    Once orders start, a few habits separate stores that last from those that fade:

  • Confirm every COD order by call or WhatsApp before you ship.
  • Track your return rate by city and product — it tells you where you're losing money.
  • Reply fast. Customers who message and wait an hour often buy elsewhere.
  • Reinvest your early profit into stock that's proven to sell.
  • Common Mistakes to Avoid

  • Spending everything on stock before testing demand.
  • Pricing without counting delivery, COD and return costs.
  • Not confirming COD orders, then paying for refused parcels.
  • Relying on one Instagram account as your entire business.
  • More in e-commerce mistakes that kill new stores.

    Final Thoughts

    You don't need a big budget to start an online business in Pakistan — you need a product people want, honest pricing, reliable delivery and a place to take orders. Start small, learn from every order, and grow from there.

    When you're ready for a website, you can start a free store on Yuplify with cash on delivery built in.

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    Abu Bakar Memon

    Abu Bakar Memon

    Founder & CEO

    Abu Bakar Memon founded Yuplify in Karachi in 2023 — the free eCommerce website builder for small businesses in Pakistan. He writes about starting and growing an online store — pricing, cash on delivery, couriers and getting the first orders — from building the platform Pakistani sellers use every day.

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