E-commerce in Nepal

E-commerce has become a popular trend in Nepal in recent years, with many businesses and entrepreneurs opting for online platforms to sell their products. With the advancement of technology and the increasing use of smartphones, the e-commerce market in Nepal has been growing rapidly. Not to mention the growth of the market due to Covid pandemic. As of March 2023, there are a more than 40 e-commerce sites operating in Nepal.

The leading e-commerce site in Nepal as of March 2023 is daraz.com.np. This platform provides a diverse range of products, including electronics, fashion, home appliances, and beauty items. Daraz has been operating in Nepal since 2018, and has become a household name in the e-commerce industry. The site offers a wide range of products, including electronics, fashion, home appliances, and more.

The second largest e-commerce site in Nepal is hamrobazaar.com. Hamrobazaar has been operating as a marketplace in Nepal since 2005, and is one of the oldest e-commerce sites in the country. It is known for wide range of products, including vehicles, electronics, and real estate.

Bizbazar.com.np comes in third place, followed by thulo.com and sybazzar.com. These sites offer a variety of products, including fashion, electronics, home appliances, and more.

One interesting trend observed in the Nepalese e-commerce market is the increasing popularity of specialized websites. gyapu.com, for instance, offers a curated selection of fashion and lifestyle products, while ePharmacy.com.np provides customers with a convenient platform to purchase medical supplies and prescription drugs online. Giftmandu.com, on the other hand, specializes in delivering gifts and flowers to customers across Nepal.

Moreover, the popularity of food delivery services in Nepal has led to the emergence of online grocery stores. Choicemandu.com and Fatafatsewa.com are two of the most popular grocery delivery services in Nepal, offering customers a wide range of groceries, fruits, and vegetables, as well as household items.

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Fig. 1: Pie chart of the market share of the top e-commerce sites in Nepal as of March 2023. The sites are in the order of decreasing market share value with respect to listed products.

Challenges for e-commerce websites in Nepal:

Despite the growing number of e-commerce websites in Nepal, there are still several challenges that need to be addressed. One of the major obstacles is the lack of trust among customers when it comes to online payments. Cash-on-delivery is still the preferred payment method for many customers in Nepal, and it has become the norm for many e-commerce websites.

Another challenge is the logistics and delivery network in Nepal. Many e-commerce websites are still struggling to offer reliable and fast delivery services to customers across Nepal, particularly in rural areas. However, several platforms such as sastodeal.com and okdam.com have managed to overcome these challenges and provide their customers with quality delivery services.

The Nepalese e-commerce market is still in its early stages, but it is growing rapidly, and more people are becoming comfortable with online shopping. While there are still some challenges that need to be addressed, the future looks promising for the e-commerce industry in Nepal. With the increasing number of specialized websites and the emergence of online grocery stores, customers have more options than ever before, and e-commerce websites are becoming an essential part of daily life in Nepal.

Why are emerging e-commerce site in Nepal dying?

The Nepali market is limited, however e-commerce sites have been flooding market. This is a usual trend in Nepal in most of the business, one reason due to stagnant capital. The result of which is trap for late comers. These are one of the dead e-commerce sites: atongm, sajilookhati, himalmart, fewabazar.

  1. Lack of brand recognition: There are already established e-commerce sites which have built up strong brand recognition and customer loyalty over time. Newer sites may struggle to attract customers and establish their own brand identity in a crowded and competitive market.
  2. Limited resources: Building a successful e-commerce site requires significant investment in technology, logistics, marketing, and other areas. Smaller or newer sites may struggle to compete with larger players who have more resources and economies of scale.
  3. Limited product offerings: Many of the smaller e-commerce sites in Nepal have a more limited selection of products compared to the larger players. This can make it difficult to attract customers who are looking for a wide variety of products or specific niche items.
  4. Customer trust and security: E-commerce sites need to be able to establish trust with their customers by providing secure payment processing, reliable shipping and delivery, and responsive customer support. Smaller or newer sites may struggle to establish this level of trust with customers who are used to the reliability and security offered by larger and more established sites.
  5. Lack of innovation: In a rapidly evolving e-commerce market, innovation is key to staying ahead of the competition. Smaller or newer sites may struggle to innovate and offer new features and services that can attract and retain customers.

E-commerce and Social Media :

The e-commerce market in Nepal is rapidly expanding, and one of the key drivers of this growth is the increasing use of social media as a platform for buying and selling products. Social media platforms such as TikTok, Facebook, Viber, Whatsapp and Instagram are becoming increasingly popular among small businesses and entrepreneurs in Nepal, providing them with a cost-effective and convenient way to reach a wider audience.

TikTok and Facebook, in particular, has emerged as a leading platform for e-commerce in Nepal, with thousands of small businesses using the platform to sell their products online. The social media giants have launched several initiatives to support e-commerce businesses in Nepal, like TikTok Live, which allows user to interact with the seller and view the product and Facebook Marketplace, a feature that allows users to buy and sell items directly on the platform.

In addition to Facebook, Instagram has also become a popular platform for e-commerce in Nepal. Many small businesses are leveraging Instagram’s visual nature to showcase their products and reach a wider audience. Instagram’s shopping feature allows businesses to tag products in their posts, enabling users to purchase products directly through the platform.

One of the main advantages of using social media as a platform for e-commerce is the low barrier to entry. Small businesses and entrepreneurs can set up an online store on social media platforms without the need for a website, reducing the initial investment required to start an e-commerce business. Additionally, social media provides businesses with a way to build a loyal following by engaging with customers and creating a community around their brand.

However, using social media as an e-commerce platform does come with some challenges. One of the main challenges is the lack of control over the user experience. Unlike e-commerce websites, businesses using social media platforms have limited control over the look and feel of their online store, making it more difficult to provide customers with a seamless buying experience.

Another challenge is the lack of payment and shipping options. Many businesses on social media still rely on cash-on-delivery as their primary payment method, and shipping can be a challenge, particularly for businesses based in rural areas.

Social media is becoming an increasingly important platform for e-commerce in Nepal, providing small businesses and entrepreneurs with a cost-effective way to reach a wider audience. While there are some challenges associated with using social media as an e-commerce platform, businesses can overcome these challenges by focusing on creating a seamless buying experience and building a loyal following through engagement and community building. As the e-commerce market in Nepal continues to grow, social media is likely to play an increasingly important role in the industry’s development.

Things to consider if you requires a website:

  1. Purpose: The first thing to consider is why the business needs a website. Is it to provide information to customers? Sell products or services online? Generate leads? Once the purpose is defined, the design and functionality of the website can be tailored to meet those specific goals.
  2. Target audience: Understanding the target audience is critical for creating a website that will resonate with visitors. This includes demographic information such as age, gender, location, and interests. A website designed for a younger audience will look and function differently than one designed for an older demographic.
  3. Branding: The website should reflect the branding and messaging of the business. This includes visual elements such as color scheme, typography, and logo, as well as the tone and voice of the content on the site.
  4. User experience: The user experience (UX) is how visitors interact with the website. It includes everything from the navigation and layout of the site to the ease of use and speed of the site. A good UX will make it easy for visitors to find what they need and take the desired action.
  5. Content: The content on the website should be high-quality, relevant, and engaging. This includes text, images, videos, and other multimedia elements. The content should be optimized for search engines to ensure it ranks well in search results.
  6. Security: Security is a critical consideration for any website, especially those that handle sensitive customer data such as payment information. The website should be secure and protect against common threats such as hacking and malware.
  7. Maintenance: A website requires ongoing maintenance to keep it running smoothly and securely. This includes updates to software and plugins, backups of the site and data, and regular monitoring for issues such as broken links or slow load times.
  8. Budget: Creating a website can range from a few hundred dollars to several thousand depending on the complexity and features required. It’s important to consider the budget for the project and ensure that the investment aligns with the expected return on investment.
  9. Competition: The business should also consider its competition and what they are doing with their websites. This can help identify opportunities to differentiate and stand out in the market.
  10. Mobile Optimization: With the rise of mobile devices, it’s important to consider how the website will appear on various screen sizes. A website should be optimized for mobile devices to ensure a good user experience for all visitors.
  11. Analytics: To measure the success of a website, it’s important to track metrics such as traffic, bounce rate, and conversion rates. The website should be set up with analytics software such as Google Analytics to track these metrics and make data-driven decisions about the site.

Costs for creating an e-commerce website:

Only once you decide that you require a website, an estimate of the costs:

  1. Domain name: For .com.np domain, you can get for free. If you sought for .com domain you need NPR. 1000 to NRs. 3000 per year
  2. Hosting: NRs. 1000 to NRs. 5000 per year. There are also free hosting sites.
  3. Web design and development: NRs. 10,000 to NRs. 100,000 or more, depending on the complexity of the website. Free if you do it by your own or use free templates and free programmes.
  4. Content creation: NRs. 1000 to NRs. 10,000 or more, depending on the amount and type of content required. Free if you do it by your own.
  5. SEO: NRs. 5000 to NRs. 50,000 or more, depending on the extent of optimization required. Free if you know how to do.

E-commerce and price comparison:

Price comparison sites like sastokhoj.com are online platforms that allow users to compare prices of products and services from multiple retailers or service providers. These sites typically aggregate information on prices, product features, reviews, and other information to help consumers make informed purchasing decisions. The use of price comparison sites has become increasingly popular around the world, including in Nepal.

One of the key benefits of using a price comparison site is that it allows consumers to easily compare prices across multiple retailers or service providers. This can help consumers save time and money by identifying the best deals available. Additionally, price comparison sites often provide information on product features, reviews, and other factors that can help consumers make informed purchasing decisions.

The largest price comparison sites in Nepal is SastoKhoj.com. This site allows users to compare prices for a range of products, including electronics, fashion, and home appliances. SastoKhoj.com aggregates information from multiple retailers, providing users with a comprehensive view of prices and features. Additionally, the site provides users with alerts when prices drop for a particular product, helping them save money on their purchases.

While price comparison sites can be a valuable tool for consumers, it is important to note that they are not without their limitations. One limitation is that not all retailers or service providers may be included on a particular site, which can limit the scope of price comparisons. Additionally, price comparison sites may not always provide information on important factors such as shipping costs, warranty information, or customer service quality.



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