If you are planning to start an online business, choosing the right platform is crucial. Two popular options in Pakistan and South Asia are Daraz and Shopify. While Daraz operates as an online marketplace, Shopify is an independent eCommerce platform. Whether you’re an entrepreneur, a small business owner, or an established brand, Daraz helps brands and SMEs grow their business through its platform and services. Each has its own advantages and limitations, making it essential to understand which one is better suited to your business needs. In this thorough article, our Tashheer research team has explained all the dominant features of Daraz and Shopify for Pakistan businessmen.
What is Shopify?
Shopify, on the other hand, is an eCommerce platform that allows businesses to create their own online stores. It provides customizable themes, payment integrations and tools for managing products, orders, and customers independently. Shopify offers multiple services like payments, marketing, shipping and customer support. As of 2024, Shopify supports 5.6 million active stores in over 175 countries. In 2023, the company reported $7.1 billion in total revenue with a 20% increase in Gross Merchandise Volume (GMV) to $235.9 billion. Shopify is the second-largest publicly traded company in Canada.
What is Daraz?
Daraz is a leading online marketplace in South Asia, operating in countries like Pakistan, Bangladesh, Sri Lanka, Nepal and Myanmar. Daraz offers a wide range of products including electronics, fashion, home appliances, beauty products and groceries. It was founded in 2012 and later acquired by Alibaba Group in 2018, which helped expand its operations and improve logistics, payment methods and customer experience. Daraz operates as an online marketplace, connecting buyers and sellers while also offering various services like DarazMall (official brand stores), Daraz Express (logistics), Daraz Wallet (digital payments), and Daraz University (training for sellers). It also organizes annual mega sales like 11.11, 12.12, and Black Friday.
Daraz vs. Shopify: Choosing the Right E-Commerce Platform
Here are some key features of Daraz vs. Shopify to help you decide which platform is better for your online business
Business Model
- Daraz operates as a marketplace where multiple sellers compete for customer attention. You are one of many sellers on the platform.
- Shopify app allows you to create your own standalone online store, giving you complete ownership and control over your brand.
Target Audience
- Daraz is best suited for sellers targeting customers in South Asia, particularly in countries where Daraz has a strong presence.
- Shopify is Ideal for businesses targeting a global audience or specific niches, as it allows you to sell to customers worldwide.
Fees and Pricing
- Daraz charges a commission fee on each sale, which varies depending on the product category. There are no upfront costs but you lose a portion of your revenue.
- Shopify operates on a subscription-based model with plans starting at $29/month.
Daraz vs. Shopify: Choosing the Right E-commerce Platform
Selecting the best platform for your online business depends on your goals, control preferences, and growth plans. Below is a comparison of Daraz and Shopify to help you make an informed decision.
| Feature | Daraz | Shopify |
| Business Model | Online marketplace (sell on Daraz’s platform) | E-commerce platform (create your own store) |
| Control Over Store | Limited (Daraz controls policies, design, and visibility) | Full control (customizable store, own policies) |
| Setup Process | Easy (register as a seller, list products) | Requires setup (domain, theme, payment integration) |
| Customization | Limited (predefined store page) | Highly customizable (themes, apps, branding) |
| Fees & Costs | Commission-based (Daraz takes a % of sales) | Monthly subscription fee (starts at $39/month) + transaction fees |
| Marketing & Traffic | Daraz provides traffic but high competition | You bring traffic via ads, SEO, social media |
| Payment Processing | Daraz handles payments and payouts | Multiple payment gateways (Stripe, PayPal, local banks) |
| Customer Data & Insights | Limited access to customer data | Full access to customer data and analytics |
| Scalability | Limited (growth depends on Daraz’s policies and algorithms) | Highly scalable (expand globally, add apps, integrate with tools) |
| Best For | Beginners, small businesses, sellers looking for quick sales | Brands, entrepreneurs, businesses wanting full control |
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Which Platform Is Better for Your Business?
Here are some key points that explain the pros of each platform and guide the businessman about his business needs, mentioned as:
Choose Daraz If:
- You are a small business or individual seller looking to start selling online.
- Your target market is in South Asia.
- You want to leverage an existing customer base without investing in marketing.
- You prefer a platform that handles logistics and payments.
Choose Shopify If:
- You want to build a unique brand and have full control over your online store.
- You are targeting a global audience or specific niches.
- You are willing to invest time and resources into marketing and logistics.
- You plan to scale your business in the long term.
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Final Words
Both Daraz and Shopify have their merits and the choice ultimately depends on your business goals, target audience, and resources. If you are looking for a quick and easy way to start selling in South Asia, Daraz is an excellent choice. However, if you’re serious about building a brand and scaling your business globally, Shopify offers the flexibility and tools you need to succeed. Before making a decision, consider your long-term goals, budget and the level of control you want over your online business. Whichever platform you choose, ensure it aligns with your vision and helps you achieve your e-commerce objectives.
About the Author: Sana Noureen
