E-commerce in Nepal: Daraz.com Project Report - Tribhuvan University

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This project report provides an overview of e-commerce in Nepal, focusing on Daraz.com. It begins with an introduction to e-commerce and its growth in Nepal, followed by a detailed examination of Daraz.com, including its history, objectives, categorization of products, buying process, and payment methods. The report also analyzes Daraz's business model, advantages, and drawbacks in the competitive online shopping market. It highlights Daraz's strategies for maintaining market position, customer retention, and continuous quality improvement. The report includes figures and tables to illustrate key aspects of Daraz's operations and concludes with a summary of the findings.

TRIBHUVAN UNIVERSITY
NEPAL COMMERCE CAMPUS
Minbhawan, Kathmandu
PROJECT REPORT ON
Daraz.com
Submitted By:
Roshna Khanal
Submitted To:
Mr. Raju Karki
(In partial fulfillment of the requirements for the Course E-Commerce)
Minbhawan, Kathmandu
July, 2021

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Project Report on: “E-commerce in Nepal” - Daraz
A report submitted for the project requirement of Module:
“Ecommerce”
Module Tutor : Raju Karki
Module Code: ITC 311
Bachelor of Business Management
Tribhuvan University
(Nepal Commerce Campus)
July, 2021
Submitted by : Submitted to:
Roshna khanal Mr. Raju Karki
Lecturer, Ecommerce

Nepal Commerce Campus
Minbhawan, Kathmandu
Certificate of the Project
This is to certify that the project work titled “A STUDY ON E-commerce services and
providers in Nepal – Daraz.com” is the work carried out by Roshna khanal. In partial
fulfillment of the degree of Bachelor’s of Business Management(BBM) 7th semester in E-
commerce to the Nepal Commerce Campus, is a record of bonafied work carried out under
my guidance and supervision in the academic year 2020.
The results embodied in this project report have not been submitted to any other University
or Institute for the award of any Degree or Diploma. On the basis of the declaration made
by them, I recommend this project report for evaluation.
………………………..
..……………………….
Certified by Head of the Dept.
Mr. Raju Karki BBM ( NCC )

Acknowledgement
This report has been generated with the main objective to fulfill the requirement of the
course E-commerce. This report is based on the brief information of online shopping with
the objectives and importance. The efforts put into this report is not of a single person but
includes many input from other individuals .I would like to take this opportunity to thank
them all.
I am thankful to our teacher Mr. Raju Karki for his guidance and motivation. I thank him
for providing such a golden opportunity to prepare this report.
I express our sincere thanks to my friends for their time and advices to sharpen the contents
of this study. I have put in My all possible strength to make this report error free and as
good as it can be, however there might be some mistakes done in course we apologize for
any mistakes (if found) and look for any sort of comments, criticisms which will help us
generate better reports in the days to come.

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ABSTRACT
This project report is based on Electronic Commerce. Electronic Commerce is process of
doing business through computer networks. A person sitting on his chair in front of a
computer can access all the facilities of the Internet to buy or sell the products.
This report is based on the brief information on online shopping with the objectives and
importance. This report, in an introductory phase ecommerce a short description on online
shopping in Nepal then highlights about website; Daraz.com along with its history, services
and objectives. The project work sets light on Categorization of Daraz.com, which contains
of background of Daraz, short history of Daraz,.It employs for quicker customer service,
delivery process, payment process, and business model it follows.Daraz.com as a popular
online shopping site is also being exposed to growing competition and its likely Advantages
and Disadvantage of Daraz’s existence. Thus, this report attempts to explain the major plans
and strategies Daraz.com adopts to maintain their position in the market, retain their
customers, continuous effort for quality improvement.

List of Figure
Figure 1: Business to consumers…………………………………………………….6
Figure 2: Business to business……………………………………………………….7
Figure 3: Consumer to consumer……………………………………………………7
Figure4: Consumer to business………………………………………………………7
Figure5: Categorization of product………………………………………………….9
Figure6: Website of Daraz……………………………………………………………10
Figure7: Search the product………………………………………………………….10
Figure8: Select the Product…………………………………………………………..11
Figure9: Read and check the product details……………………………………….11
Figure10: Register / verification of the customers ID/ login in…………………….12
Figure11: Add to cart…………………………………………………………………12
Figure12: Select the address………………………………………………………….13
Figure13: Confirm your order and choose for payment method………………….13
Figure14: Wait for the order to deliver……………………………………………..14
Figure15: Receiving order …………………………………………………………..14
Figure16: Unboxing. …………………………………………………………………15
Figure17: Payment method…………………………………………………………..15
Figure18: Debit/Credit Card (Visa)………………………………………………….16
Figure19: Cash On delivery………………………………………………………….16
Figure 20: Esewa………………………………………………………………………17

Table of Content
Chapter 1:Introduction..........................................................................................................................1
1.1 Introduction to E-commerce............................................................................................................1
1.2 E-commerce in Nepal......................................................................................................................2
1.3 Introduction to Daraz.com.np..........................................................................................................4
1.4 Business models..............................................................................................................................5
1.41 B2C(Business to Consumers)........................................................................................6
1.42 B2B(Business to Business)............................................................................................6
1.43 C2C: Consumer to consumer)........................................................................................7
Chapter 2:Daraz......................................................................................................................................8
2.1 Objectives of Daraz:........................................................................................................................8
2.2 Categorization of products:.............................................................................................................8
2.3 Buying process..............................................................................................................................10
2.4 Payment method:...........................................................................................................................15
2.41 Popular payment method in Nepal:..............................................................................18
Chapter 3 :Advantages and Drawbacks..............................................................................................20
3.1 Advantage of buying in Daraz.......................................................................................................20
3.2 Drawbacks....................................................................................................................................21
Chapter 4:Conclusion ..........................................................................................................................22
4.1 Conclusion....................................................................................................................................22
List of Reference………………………………………………………………………………25

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CHAPTER 1
Introduction
1.1Introduction to E-commerce
E-commerce is commerce done through Internet technologies which means presale and
post-sale activities. Varieties of businesses around the globe have introduced an electronic
commerce portal as their operations, looking after the different merits that the online
marketplace can provide.
Since the last part of the 1990s, internet business has quickly developed in the developed
world. Today, a web-based business has been broadly utilized and many organizations have
moved from the offline to the online world to serve their service worldwide through the
internet. In this way, numerous huge organizations keep on setting up web-based business
broadly. So that worldwide chain of the people get connected by using electronic links to
suppliers, to strengthen online integration with distributors and business partners, to design
and customize products services, and to attempt to serve customers more effectively.
Simply, E-commerce defined as an Internet technology that provides the capability to buy
and sell goods through online media and portal which including market creation, ordering,
supply chain management, and transfers through the opening protocol. (Novak, et al., 2002)
The three major consideration of variables as sources of the strategic value of ecommerce
are ‘‘operational support" which measures how e-commerce can reduce costs, improve
customer services and distribution channels, provide an effective support role to operations,
support linkages with suppliers, and increase the ability to compete. "Managerial
productivity" defines how e-commerce can be taken out to access information, provides a
means to use generic methods in decision-making, improves communication in the
organization, and improves the productivity of managers. Finally, "strategic decision aids"
defines how e-commerce can support strategic decisions of managers, support cooperative
partnerships in the industry, and provide information for strategic decisions. (Pearson &
Grandon, 2004.). It affirmed that more than ten e-commerce benefits for both buyer and
seller. Such as cost savings and speed in selling and purchasing, exposure to new customers
(global reach), convenience and transparency to users, the better quality of product/service
(global reach), reduce the need for office space, and fewer resources required.
The author reviewed the report based on Daraz as a part of secondary sources also and has
outlined as follows. The author of the thesis also reviewed how Daraz analysis the market,
check the future drawbacks and solution of the problems. The author also got to know the
environment or the surrounding markets that got affected by Daraz. It also helped to identify
Daraz's target group of customers and also how they were able to bring in the customer in
the marketplace. Many companies and organizations are competing to be the number one
globally and to be in the mind of all customers. Along with this, they are trying to protect
their market values and shares. Marketing means creating customer retention and loyalty.
How they change their activity exercises and their arranging strategy by progress in
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theinvestment. The data gathered collected was checked during the meeting with the
marketing officer.
It is the use of electronic communications and digital information technology in business
transactions. To make, change and rethink connections for esteem creation between or
among associations and among associations and people. (Gupta, 2014.). In another words, it
refers to wide range of online business activities for products and services which refers to
buying and selling over the internet.
The term electronic commerce or e-commerce refers to any sort of business transaction that
involves the transfer of information through the internet. By definition it covers a variety of
business activities which use internet as a platform for either information exchange or
monetary transaction or both at time.
Apart from these two categories of e-commerce sites, there are some sites which enable
businesses to exchange trading goods and also service between two or more companies. All
of these forms of internet based business platforms are known as e-commerce.
A type of business model, or segment of a larger business model, that enables a firm or
individual to conduct business over an electronic network, typically the internet. Electronic
commerce operates in all four of the major market segments: business to business, business
to consumer, consumer to consumer and consumer to business. It can be thought of as a
more advanced form of mail-order purchasing through a catalogue. Almost any product or
service can be offered via ecommerce, from books and music to financial services and plane
tickets. Also sometimes written as "e-commerce" or "eCommerce".
E commerce has allowed firms to establish a market presence, or to enhance an existing
market position, by providing a cheaper and more efficient distribution chain for their
products or services. One example of a firm that has successfully used ecommerce is Target.
This mass retailer not only has physical stores, but also has an online store where the
customer can buy everything from clothes to coffee makers to action figures. When you
purchase a good or service online, you are participating in ecommerce.
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1.2 E-commerce in Nepal
In the contest of Nepal, these are the path of success through online shopping and
marketing. People are using fast speed inexpensive 3G, 4G, and 5G internet technology
provided by the local server. Similarly, the convenient modes of payments and user-friendly
interactive shopping apps are further paving a pathway to un-precedented growth in the e-
commerce sector. The growth in the information technology sectors and the increasing
number of young human resources in the information technology sector directly created
more opportunities for the growth of e-commerce in Nepal (Karki, 2020.). The status of e-
commerce in Nepal seems promisingly good. Many users are attracted to online shopping
and using online services. Many online portals and shopping portals are launched. The
competition is rapidly increasing
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day-by-day due to an increasing number of online stores in Nepal, which will ultimately
benefit the future of e-commerce in Nepal.
Similarly, the Nepalese entrepreneurs have also enhanced another aspect of online shopping
by increasing the trend of using social media as a shopping platform. The major online
organizations which are functioning in Nepal are business-to-consumer (B2C) or consumer-
to-consumer (C2C) model business (Malla, 2018.)
For example, Hamrobazar.com are considered as the free online gateway that gives a free
stage to associate purchasers and venders where the two are buy-ers.
Likewise, NepBay began in 2006, as an online registry of items and shops just because at
Kathmandu for purchase and selling of second hand and utilized things in the long run
changed itself into an online organization. When NepBay presented "cash 18 on delivery" in
2013, it was the first organization to introduce this service. It has been a common platform
for small and medium enterprises in Nepal to sell their goods. In July 2016, Pakistan-based
online business Daraz took over Kaymu, and again the Chinese-owned internet business
organization Alibaba Group procured Daraz in May 2018. Internet shopping in Nepal are
done particularly on Facebook and on Instagram also (Vaidya, 2019)
As the popularity of E-Commerce is Increasing globally, so is in Nepal. Today, As of 2019,
there are 31 private ISP's In Nepal with nearly 16.67 million internet users nationwide. And
According to export.gov roughly 40% of these accounts are commercial. Online E-
Commerce Activities is mainly concentrated on Kathmandu Valley and some major cities.
However with the increase of internet penetration the number of mobile users are increasing
in rural areas and so is online activities. Today there are many E-Commerce Websites that
are providing e-commerce in Nepal along with delivery service. Below is the list of some
of the top E-Commerce websites in Nepal.
Currently, there are few eCommerce websites that are operating in Nepal (Kathmandu, to be
more specific). The notable ones are Daraz, HamroBazar, SastoDeal, SmartDoko,
FoodMandu, Muncha, InternetPasal and MetroTarkari. They are primarily focused in
Kathmandu valley. Many online shops are also starting to operate outside Kathmandu.
Daraz has delivery networks over Butwal, Biratnagar, Pokhara, and some major cities. Also,
many businesses have their own standalone eCommerce system in place like Bhatbhateni
online (now esewapasal), 911foodexpress, ugcakes, etc. These are simply the additions to
their existing stores and mechanism for delivery rather than a full-fledged online store. We
don’t have exact data about the total Investment, transaction, and profit of those online
marketplaces but can easily assume that they are struggling in many facets; delivery and
refund policy being the major ones.
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1.3Introduction to Daraz.com.np
Daraz Nepal, established in 2012 has become the biggest online store in Nepal at the present
time. The biggest Chinese E-commerce company Alibaba group obtained Daraz for an
unnamed deal in May 2018. ( Manandhar, et al., 2017.). Daraz has become an important
part of Alibaba’s global strategy to be in the global market and to target 2bn consumers. It
can be considered as the win to Alibaba’s globalization strategy. (Nasir & Abdullah, 2017).
As regards the opportunities in the field of the online business area, the widest area for the
e-commerce business in the world is in South Asia where Daraz has dig its place in the
emerging market with a fas tgrowing retailer in five countries. They are operated in Nepal,
Pakistan, Sir Lanka, Bangladesh, and Myanmar. It has got 15 million customers per month
all around the world in South Asia and aimed to penetrate the global market with its
technology. Daraz was previously known as Kaymu and now it owned by Alibaba Group in
April 2018. This is founded by Rocket internet ventures which are led by Ahmed khan as its
MD in Asia and were founded in 2012. Daraz online shopping presence in Nepal since
2014, when it was introduced as kay-mu.com. In 2016, due to the digitalization of electronic
commerce, they decided to merge Daraz and Kaymu under the new entity to the Daraz
group of Alibaba. Alibaba group buys an E-commerce site which brings both seller and
buyer together. Daraz has targeted to set online marketplace in various countries such as
Paki-stan, Nigeria, Morocco, Ghana, Bangladesh, Afghanistan, and in the middle east
including Nepal too. ( Manandhar, et al., 2017.)
In 2015, Bjarke Mikkelsen, CEO at Daraz, made the decision of the investment banking to
the electronic business site, focusing on the underserved South Asian area with incredible
success. “I decided to do something different,” Mikkelsen explains. "I needed to be in the
correct business, at the opportune time, in the correct business sectors unexpectedly, to
exploit and accomplish leading position". (Lawerence, 2020.). Daraz has got a wide range
of market environments, data, and service solutions. Moreover, it has 30,000 sellers and 500
brands and serves 5 million consumers across the region and offers 2.5 million products. It
consists of a diverse quantity of products for customers which are household goods, beauty,
fashion, sports equipment, and grocery items. ( Manandhar, et al., 2017.). Kaymu was the
first online shopping App’s which launched in Nepal in May 2014 and later changed to
Daraz Nepal. Since the launch of Daraz, it becomes Nepal’s fastest growing and selling
online marketplace. It has also offered cash on delivery to support buyers and sellers both.
Daraz expanded the online shopping experience in Nepal to mobile platforms. As the
number of people using phones are increasing day by day sales increases. So, phone
provides an good online shopping experience on a mobile platform that makes it quite
helpful for every customer to explore. The mobile application in Android and IOS
applications had made it easier and these applications have been developed for making
buying and selling online faster, more easy, popular, and user-friendly. This App also has
unique services to improve their different experience towards their customer. Daraz in
Nepal was managed by Mr. Rajiv Amatya as overseeing chief and Mr. Laxman Basnet as a
human asset administrator. Recently, Daraz Nepal has done the biggest sale by organizing
11-11 Daraz sales which was quite successful and profitable. Currently, Daraz has
5