Shopify one of the more viable options for those in Pakistan looking to make money online, people can choose to take it up as a side hustle alongside their day job or as a full-fledged business. There is one thing different here compared to the US and UK sellers. A few things are different, particularly in the payment-side.
The guide explains exactly how Pakistani sellers are making money on Shopify today, what to anticipate with regards to charges and taxes and what enterprise designs really perform well for this marketplace.
Is Shopify Actually Usable From Pakistan?
Yes. Shopify is available in Pakistan and you can create a Shopify store with PKR pricing and sell in Pakistan and overseas and have your products delivered to you by domestic couriers such as Leopards, TCS and M&P.
First off, Shopify Payments is not available in Pakistan. It is the one major distinction between running a Shopify store and most of the world in the west and it influences almost all other decisions you make.
Step 1: Choose Your Business Model
In order to touch the platform itself, you need to settle how you are going to make money on the platform. There are three prime routes that Pakistani sellers take:
Dropshipping
You do not stock anything. You do not keep any inventory of products. Once someone places an order, your supplier will deliver it directly to the customer. The margins are usually between 10% to 40% and the income generated by the active dropshippers is generally between PKR 50,000 and PKR 200,000 every month according to the ad expenditure and product selection.
Selling Physical Products You Source or Make
Those local brands selling clothes, accessories or handmade products within the country or to international customers. It demands more of an initial investment than dropshipping but generally offers higher margin and quality, and more control.
Digital Products
eBooks, Courses, Templates and more get rid of inventory and shipping. Margins are good, as there is no cost of goods once the product is made, but this path is heavily reliant on marketing and building an audience. It may take a while to attract the initial user base, but once that happens, established sellers can make more than PKR 100,000 per month.
Step 2: Set Up Your Shopify Store
Sign up for a Shopify trial
Shopify has a brief free trial, and at times promotions of $1 per month when opened.
Pick a plan
The Basic Shopify plan is priced at $25 per month and is the perfect choice for a new seller.
Choose a theme and customize your storefront
There is no coding involved, and most design needs are met out of the box.
Add your products
Clear photos, honest descriptions and accurate pricing, if local.
Set up shipping rules
Establish shipping rules, taking into account the shipping cost for the domestic couriers (for domestic buyers), or the international shipping cost (for international buyers).
Step 3: Set Up Payments (The Part That Actually Matters)
Shopify Payments does not support Pakistan, therefore you will need to use a third party payment solution. These are the things that Pakistani merchants use:
| Payment Method | Notes |
|---|---|
| Cash on Delivery (COD) | Still dominates the local market, accounting for roughly 55% of transactions |
| JazzCash / EasyPaisa | Mobile wallets used in about 20% of transactions combined; JazzCash alone has over 35 million accounts |
| Bank Transfers | Around 10% of transactions, more common for larger local orders |
| Credit/Debit Cards | Around 10% of transactions, mainly for international or urban customers |
| Payoneer | Commonly used for receiving international payments and transferring earnings to local bank accounts |
| Payment Gateways (XPay, UnumPay, Paymob) | Third-party aggregators that let you accept cards, wallets, and bank payments directly on your Shopify checkout |
Those customer is predominantly Pakistani, COD along with JazzCash or EasyPaisa accounts for the majority of preferences. For those seeking to cater to international clientele, the significance of a gateway such as Payoneer or a Shopify-integrated aggregator becomes all the more pronounced when it comes to managing foreign payments effectively.
Step 4: Tax Side – Understanding the Tax Side
This is what most beginner guides miss out on and it can be a big deal when you start to make steady profits.
- Federal sales tax on goods is 18% imposed by the Federal Board of Revenue (FBR).
- The rates of provincial sales tax on services are region wise differentiated with the rates of 16%, 13%, 15% and 15% for Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan respectively.
- If you are receiving foreign currency through Payoneer or other means of receiving foreign currency and you are getting money from abroad, it is generally considered as income and is taxed according to the normal rules of Pakistan for income tax and you should register as a filer with the FBR if you start earning foreign currency regularly.
However, tax laws may vary based on your business and income level, so it is best to talk to an accountant or tax adviser who is knowledgeable about ecommerce once you start making a steady income.
Realistic Income Expectations
Full disclosure – outcomes are highly variable depending on niche, marketing budget and the amount of effort you are willing to put. If you have no ideas or traffic, it is hard to expect any significant earnings from your new dropshipping site during the first month or two.
The following trend is noted, based on the experiences of active sellers from Pakistan:
- It can take a bit of time before a new drop shipping website is up and running with a product that sells on a regular basis, usually a month or more.
- Initially, digital product sellers experience slower growth, but once they have an audience, they have higher margins.
- If you have a large social media audience (Instagram, TikTok, Facebook) you will likely enjoy quicker results as you will not be building an audience from scratch.
Frequently Asked Questions
Is it possible to use Shopify payments in Pakistan?
No. The Shopify Payments is not available in Pakistan. A third party payment gateway or payment method (like JazzCash, EasyPaisa, Payoneer or aggregator like XPay or UnumPay) will be required.
Dropshipping is legal in Pakistan?
Yes dropshipping is a legal business model in Pakistan, but be mindful of import regulations upon when you are bringing goods from outside of Pakistan, and register your business if it does make sense as you increase your revenues.
What is the earnings potential with Shopify in Pakistan?
It varies widely. Another category of active dropshippers typically earn anywhere from PKR 50,000 to 200,000 monthly, but may take some time for new stores to be consistent.
