Here’s How Daraz is Setting New Standards for Ecommerce in Pakistan

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The e-commerce industry in Pakistan is in the process of growing up, and contrary to what most people think, the biggest challenge is not logistics or payment solutions. We are lucky to be in a country where we have a number of professional partners that can provide easy, safe and price competitive solutions.

According to industry experts, the biggest challenge in e-commerce space of Pakistan is education of sellers. This is particularly important as e-commerce stores rely on third-party sellers to deliver products to the end-users.

Only by educating sellers to follow proper operating and quality standards, we can make sure that customers are protected when shopping from “Online Marketplaces”.

An Online Marketplace introduces customers to sellers that maintain digital storefronts on the website – some Online Marketplaces simply make the introduction between the buyer and seller, while others manage the end-to-end fulfilment process and customer service (e.g. Daraz.pk).

If the Online Marketplace does not have solid control systems and seller education programs, then customers may face issues like:

  • The delivered product is different from the picture and description displayed on the website
  • The product is used or even a replica
  •  Sellers increase the original advertised price to show a higher artificial discount %
  • The seller cancels orders or delays the delivery

Leading online marketplace, Daraz.pk, has been taking huge effort to overcome these challenges, which is benefiting the entire e-commerce ecosystem.

“Daraz is the leading Online Marketplace in the country, and it is our responsibility to make sure that customers, as well as sellers are always protected and have a good experience when using our platform,” says Bjarke Mikkelsen, Co-CEO Daraz Group.

“We may not be the actual seller of a product, but when a purchase is made through Daraz, it has the Daraz brand on it. Therefore we offer 100% Purchase Protection on all sales from our website” he says.

“Our goal as a true marketplace is to make availability of every product that our customers are searching for, and we already have more than 300,000 product listings from approximately 2,000 active sellers – but we are only just getting started” says Mikkelsen.

In 6-12 months, Daraz aims to have more than 1 million product listings and tens of thousands of sellers. To support this growth, it is investing significantly into its control systems and training programs to make sure customers continue to have a good shopping experience as it scales the assortment.

Interestingly, while the number of sellers on Daraz is growing rapidly, the cancellation rate – i.e. when the seller cannot deliver the product – has decreased dramatically to less than 1%, and more than 90% of marketplace orders are now shipped out on the same day as the order is placed. This shows that the strategy is working and sellers are getting better each month.

According to Mikkelsen, the cornerstone to a healthy online marketplace is an ecosystem of reviews and ratings. Therefore, Daraz encourages customers to write reviews of the products they purchase and will soon display each seller’s operational performance to the customers on the product page, offering complete transparency.

“The bad reviews are equally important as the good ones. We want sellers to really care if they get a bad review because this way they will always go the extra mile to deliver on the customers expectations. Our sellers are learning that the long-term winners are the ones that perform consistently well and build customer trust over time,” says Mikkelsen.

In addition to the reviews and ratings system, Daraz has introduced stricter operating standards in November last year and encourages sellers to comply with the standard by supporting and promoting sellers that perform well.

“When we introduced the operating standards at the last Daraz Seller Summit, I stood on stage in front of 400 sellers and promised that all sellers that achieve a Diamond score for 3 months in a row would enjoy a 50% reduction in commission for certain major sale events. By now, 40 dedicated Daraz sellers have achieved this and will enjoy much higher profits through the entire month of June where we are running some major campaigns. We want to reward the sellers that help us build trust in the industry”.

Training and educating sellers takes time and Daraz is also doing daily screenings in all categories for products that are not priced appropriately or don’t meet the expected quality standards. “We are building algorithms to support us in identifying discrepancies, but to be honest there is also a huge manual effort that goes into this,” says Mikkelsen.

“We are trying to build a culture where every single person in the company spends at least 30 minutes per day on the website, browsing the categories to look for inconsistencies. In the end, we need both super intelligent systems and a strong culture of quality, to ensure that we can continue to meet our aspired standards while we scale the assortment to millions of products.”

There is still a long road ahead to develop the local e-commerce market according to industry standards, but we are reassured that the market leader is taking the right initiatives to make it happen, he concluded.


    • We’re sorry to hear about the issues you faced with our service, Najeeb. Please share your order number so we can look closely into this matter and improve our service for all of our customers. We take customer experience very seriously and your feedback is very important to us. We look forward to hearing from you soon.

  • They delivered my order in seven days although the product has been tagged as “Delivery under 24 hours”. I called them after 6 days to know if they know me or has anything to do with my order and if I will be getting my order or not, and I have been told that it will be delivered on the 3rd day from that day, amazingly it was delivered very next day.. Lol.. I had a shock by experiencing the synchronization of orders and their logistics.

      • Daraz does deliver in 24 hours if you are ordering from Karachi, yeah it’s applicable on limited products but it is a possibilty :D

    • Hello Hasni, At Daraz, customer satisfaction is our top priority, your feedback is very important to us and we will make every effort to ensure that such incidents do not reoccur in the future. Please share your order number so that we can take a closer look at your order and the issues you faced. We look forward to hearing from you soon.

  • My Daraz.PK delivery package of phone arrived unsealed and unboxed:
    i order phone and phone cover from Daraz.PK good they arrived separate delivery. when first package arrived i asked delivery boy what is this cover or phone, he said i don’t know, when i opened it was phone. 2nd package came after 3 days & whole package was already cut open & inside everything was unboxed. i complaint Daraz.PK with proof of photos and they didn’t even reply to me.

    • they already write on every parcel, if seal is broken then dont accept the parcel….

      why you accepted un-sealed parcel ?

    • We’re sorry to hear about the issues you faced with our service, Sir. Please share your order number so we can look closely into this matter and improve our service for all of our customers. We take customer experience very seriously and your feedback is very important to us. We look forward to hearing from you soon.

  • Same day delivery Service delivered me after a week without any conformation call.
    not to mentioned, their discount code never works, if you complain to their designated number, All they will have to say, we registered your complain. Thank you.

    • Hello Xahid,

      At Daraz, customer satisfaction is our top priority, your feedback is very important to us and we will make every effort to ensure that such incidents do not reoccur in the future. Please share your order number so that we can take a closer look at your order and the issues you faced. We look forward to hearing from you soon.

        • Hello Xahid,

          Thanks for providing us with the order number and the voucher information. We appreciate your time.

          We are working hard to ensure that customers receive their deliveries within the promised time frame and have served many happy customers to date. According to the information from our logistics partner, your order was placed on Tuesday, March 14th 2017 and delivered to you on Thursday, March 16th 2017 which is within 2 business days from order date. Please let us know if our delivery information is incorrect and this order was in fact delivered to you one week later.

          We have also sent over to your email address a new voucher as a replacement for the free marketing voucher you received but were unable to use.

          We hope that we see you on our website again soon.

          • Your Logistics partner information is wrong, you can also check your own database for delivery information, order placed at 14/3/17 and delivered date is 20/3/17, now its not a rocket science to calculate a week difference.

            Here is the screen shot.
            https://uploads.disquscdn.com/images/a9b1e2a3d6b154607a3f394db2b4182b51a5bc25731d87b6d418eeb3aed97ba1.jpg

            you have sent me a voucher code in email, what would I do with that code? after purchasing? do I have to purchase again items worth of 7000 to avail 500 discount? huh! nice try …

            • Hello Xhahid,
              Our logistic partner confirmed that your product was received by Mr. Zahid on 16th March, 2017 at 11 am, 2 business days after you placed the order. Our database indicates the date when we received confirmation of your delivery by the logistic partner, not the actual delivery date. If this is not the date you actually received the delivery, we will take your feedback to our logistics partner for further discussion.

              The voucher code you have received can be used to place an order on any product available on Daraz.pk.

              Thanks!

  • They sold me 720p LED TV as 1080p and when i claimed return 7 days were passed and they didn’t returned it. They kept selling that LED as 1080p for months ?

      • Changhong Ruba 39E3800, after buying it online, someone told me it’s 720p instead of 1080p I confirmed it from CR FB page and they confirmed it is 720p, (even though changhong ruba also listed it as 1080p on their website, and all eStores copied their specification so all stores listed it as 1080p, but later CR changed it back to 720p) BUT eStores kept selling it months after that as 1080p too, even after I complained to daraz.pk about it.

        SURPRISINGLY it is being sold TODAY too :D https://www.daraz.pk/39e3800-39-1920-x-1080-full-hd-led-tv-black-changhong-ruba-mpg46845.html and link to product page on changhong website http://store.changhong.com.pk/shop/productDetails/143

        NOW changhong ruba is saying that they will not give any warranty claim on LEDs bought from daraz.pk :)

        • Hello Rashid. At Daraz, customer satisfaction is our top priority, your feedback is very important to us and we will make every effort to ensure that such incidents do not reoccur in the future. Please share your order number so that we can take a closer look at your order and the issues you faced. We look forward to hearing from you soon.

          • Thanks for responding, BUT that order was around 6 month ago, product is being used so I am not expecting anything, if you are concerned about customer satisfaction can you tell me why the product is still being sold as FullHD when it is not… ChanghongRuba website’s specification clearly state that it’s 720 HDready. and Why on product page you are giving 2 year brand warranty when the brand itself if saying they will not claim any warranty of LED bought from Daraz ??????

            • We truly understand your concern, Rashid, which is why we would like our team to investigate the matter in order to properly understand what caused this event to take place, and to ensure that this does not happen again. We hope you will cooperate with us in this regard.

  • LOL so many unsatisfied customers for an advertisement post :D At least you got the views.!

  • before buying electronics from daraz.pk do check the rates on iShopping.pk as they’re sell for much cheap.

  • Sorry but i do not agree with this review. Their sellers are still using old tectics, showing fake reduced prices, late deliveries and most importantly low standard products are being delivered.
    ProPakistani don’t be blind, pls.

    • Hello Jimmzz, At Daraz, customer satisfaction is our top priority, your feedback is very important to us and we will make every effort to ensure that such incidents do not reoccur in the future. Please share your order number so that we can take a closer look at your order and the issues you faced. We look forward to hearing from you soon.

  • ‘Daraz setting new standards for e-Commerce’ xD feels like an oxymoron in a loose sense …

  • Haha… There is no transparency… Whenever I review a product as negative, the seller do not approve my reviews…
    So Sarah do not bluff innocent people

    • Hello Naveed,

      At Daraz, customer satisfaction is our top priority, your feedback is very important to us and we will make every effort to ensure that you have a better experience next time you shop with us. We want to publish your product reviews so please when submitting a review, please make sure that you: Keep your comment focused on the product, refrain from mentioning competitors or the specific price you paid for this product and you use courteous language. We look forward to hearing from you soon.

  • All the stores daraz, yayvo etc are just substandard, i got phone from daraz and they delivered it in 10 days that too in Karachi and ordered few clothes and a pair of shoes from yayvo and a month has passed but no sign of delivery and even registered a complaint 2 weeks back but nothing. Seems like they won’t ever deliver though they took payment in advance.

    • Hello Sir/Mam. At Daraz, customer satisfaction is our top priority, your feedback is very important to us and we will make every effort to ensure that such incidents do not reoccur in the future. Please share you order number so that we can take a closer look at your order and the issues you faced. We look forward to hearing from you soon.

  • Beware Everyone! Daraz is selling fake perfumes and their customer service is pathetic. I bought Versace Eros from Daraz and it fragrance was almost gone just it 2 weeks. I called Daraz customer services, 1st they claimed that perfume is genuine, than they advised me to visit the vendor , but never provided the information of vendor. After calling again and again they said it is not their policy to share vendors details. After pushing they asked me to return the perfume, after returning the perfume, i got called from Daraz that Vendor is saying that product is genuine.
    Why would vendor will ever accept that product is fake ?
    How come a genuine branded perfume can lose fragrance?

    I have also wrote review on their website, but it is not being shown. That clearly shows that Daraz also filters reviews to hide their pathetic customer service.

    Any of you having similar experiences, please share it as much as you can and do give your feedbacks.

    • Hello Minhaj, thank you for your feedback. We take customer feedback very seriously and your return request was treated with the same gravity. Our return policy for perfumes states that if an item delivered is not as advertised, it is returnable provided that the return is requested within 7 days of delivery and the item is unused in its condition. In our quest to ensure favorable customer experience, we made an exception to the 7 day policy and requested that you return the product free of cost even though the return request was placed 44 days after delivery. Upon receiving the product, we noticed that about a quarter of the actual bottle had already been consumed. We called you to inquire why the item had been used to such an extent and your response did not address why the item had been used but repeated the reason for initiating a return. In the absence of a plausible reason for the utilization of the product and upon reviewing the case in its entirety, we were not able to process your request for refund. We hope that you can see the reasoning behind our conclusions. You are important to us and we hope that you give us a chance to serve you again.

  • Have got to agree with this one. I’ve ordered several PC games, a mobile phone and even a few phones from Daraz. To be honest, I was skeptical at first. I had my doubts going in, seeing as e-commerce has just taken off. Plus I’ve heard some horror stories about other e-commerce sites/digital store fronts.

    But Daraz’s service is excellent. I didn’t have to make a single cancellation. The products were original, in perfect quality, and I got what I paid for.

    They have a long way to go before they can reach Amazon levels of success, but I think they’re on the right track.

  • I ordered a phone from Daraz during the HBL Shopping Festival and here’s what I felt.

    1) The deals on the day were decent if not great – I mean even if I ended up saving 10k on a phone that’s kinda cool obviously not as cool as getting it for free ha ha
    2) There were discounts on every category
    3) The delivery came in on time – with in a day if you may (Wasn’t expecting this!)

    Personally my first attempt at online shopping in Pakistan and all I can say is i’m pretty impressed :D

  • Ordered from Daraz so many times. It has always delivered its promise of delivering on time a quality product!

  • I ordered a kameez from Daraz and it was delivered within 10 hours. Amazing service. Happy customer. :)

  • Have ordered multiple times and have not been disappointed once. Their sales can sometimes surprise you with the best prices. Got myself a laptop and a PS4 last time around – got them delivered within 2 days.

  • I have only ordered once from Daraz & the service was spot on. Ordered an Infinix phone in the evening and it was delivered to me the next morning.

  • We love Daraz, so much that we sometimes order things together in order to avail best discounts and great offers. Keep it up Daraz !!!

  • Used Daraz multiple times for a wide range of products. Delivery was on time and the quality of the products was also satisfactory.
    Hope they are able to maintain these standards in the future too!

  • I ordered re-chargeable fan last month with bank discount. I got it for really less than the original price. Highly recommended.

  • A portal to thousands of products which are not easily available in the retail market. Hands down one of the biggest variety available online in Pakistan. So far it is a comparatively more reliable online store than its competition.

  • It was a best experience in Pakistan with online portal daraz.pk, bought a treadmill with the best price as compared to Offline market and it was delivered as shown and with all the specifications written on website.

  • I’ve lost count on the number of orders I have placed at Daraz and never have I faced an issue with their service expect once, that too was properly addressed and resolved by their support staff. The product quality is always excellent and up to my expectations.

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