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Privacy PolicyUnmasking E-Commerce and Digital Payment Scandals
Daraz, Pakistan’s leading e-commerce platform, has positioned itself as a marketplace that empowers local businesses. However, a deep dive into its seller ecosystem reveals a startling reality: 73% of so-called 'local sellers' are actually Chinese dropshippers. This means that instead of supporting Pakistani businesses, the platform is flooded with overseas suppliers selling products directly from China—often at the expense of local manufacturers and retailers. This article uncovers the truth behind Daraz’s seller network, the impact on Pakistan’s economy, and what consumers need to watch out for when shopping online.
Founded in 2012 and later acquired by Alibaba in 2018, Daraz has grown into the largest e-commerce platform in Pakistan. With millions of monthly active users and thousands of sellers, the marketplace claims to provide a space for small and medium-sized businesses to thrive. However, a growing number of consumers and analysts have pointed out that Daraz is heavily dominated by Chinese sellers masquerading as local businesses.
Dropshipping is a business model where a seller lists products online without actually keeping any stock. When a customer places an order, the seller forwards the request to a supplier—often based in China—who ships the item directly to the customer. This model eliminates the need for inventory but also creates quality control issues and long shipping times.
Recent investigations into Daraz’s seller network show that nearly 73% of the vendors listed as 'local sellers' are actually Chinese dropshippers operating through warehouses in China or third-party logistics services. Here’s how it works:
The simple answer is profit. By allowing Chinese sellers to dominate the marketplace, Daraz benefits in multiple ways:
Pakistani entrepreneurs who manufacture or source products locally struggle to compete with cheap Chinese alternatives flooding Daraz. Many local businesses have reported declining sales, forcing them to shut down or move to other platforms.
When customers buy from Chinese dropshippers, money leaves the Pakistani economy instead of circulating within local businesses. This contributes to the country’s trade deficit and weakens the rupee.
Many products shipped from China are cheap knockoffs with no warranty or customer support. Since returns often require sending items back to China, most customers end up losing their money.
Despite Daraz’s promise of fast shipping, many orders take weeks to arrive as they are shipped from China instead of a local warehouse. This results in a poor customer experience and damages trust in e-commerce.
If you're shopping on Daraz, here are some red flags to look for:
By checking these factors, customers can avoid being tricked into buying from a foreign seller disguised as a local business.
While Daraz has faced criticism for its business model, it is unlikely to change its policies unless forced by regulations or public pressure. The platform benefits financially from hosting Chinese sellers, and Alibaba’s ownership means there is little incentive to prioritize Pakistani businesses.
However, if enough consumers demand transparency and local sellers push back, Daraz may be forced to introduce stricter verification for local businesses and reduce reliance on Chinese dropshipping.
Daraz Pakistan’s claim of supporting local businesses is misleading at best and deceptive at worst. With 73% of its sellers being Chinese dropshippers, Pakistani consumers need to be aware of where their money is going. While e-commerce can bring convenience, it should not come at the cost of damaging local industries and draining foreign exchange.
The next time you shop on Daraz, do your research, support genuine local businesses, and demand greater transparency. Otherwise, the platform will continue to prioritize profits over the interests of Pakistani consumers and entrepreneurs.
This article is based on publicly available information, consumer reports, and industry research. It is intended for informational purposes only and does not constitute financial, legal, or business advice. Readers are encouraged to conduct their own investigations before making purchasing decisions.
Emily
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2025.03.27
