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Table of Contents

Chapter 1 : Introductio
n
1.1 Ecommerce..................................................................................................................2
1.2 Types of Ecommerce....................................................................................................2
1.3 History of Ecommerce in Nepal....................................................................................3
1.4 SWOT Analysis of Ecommerce in Nepal.......................................................................4

Chapter 2 : Conceptual Analysis

2.1 Challenges and Problems of Ecommerce in Nepal.......................................................6

Chapter 3 : Conclusion
3.1 Conclusion.................................................................................................................... 8

Chapter 4 : Literature Review

4.1 Meaning....................................................................................................................... 9
4.2 Importance of Literature Review.................................................................................9
4.3 Purpose of Literature Review.....................................................................................10

References.......................................................................................................................11
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 As a student of business studies, select a topic of your interest area and

write a detail note on introduction and identification of problem.

Chapter 1 : Introduction

 1.1 Ecommerce
Ecommerce, also known as electronic commerce or internet commerce, refers to the
buying and selling of goods or services using the internet, and the transfer of money and
data to execute these transactions. Ecommerce is often used to refer to the sale of
physical products online, but it can also describe any kind of commercial transaction that
is facilitated through the internet.
Whereas e-business refers to all aspects of operating an online business, ecommerce
refers specifically to the transaction of goods and services.
The history of ecommerce begins with the first ever online sale: on the August 11, 1994 a
man sold a CD by the band Sting to his friend through his website NetMarket, an
American retail platform. This is the first example of a consumer purchasing a product
from a business through the World Wide Web—or “ecommerce” as we commonly know
it today.
Since then, ecommerce has evolved to make products easier to discover and purchase
through online retailers and marketplaces. Independent freelancers, small businesses, and
large corporations have all benefited from ecommerce, which enables them to sell their
goods and services at a scale that was not possible with traditional offline retail. Global
retail ecommerce sales are projected to reach $27 trillion by 2020.
[ CITATION Sho20 \l
1033 ]
 1.2 Types of Ecommerce
There are four main types of ecommerce models that can describe almost every
transaction that takes place between consumers and businesses.

 Business to Consumer (B2C):

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When a business sells a good or service to an individual consumer (e.g. You buy a pair of
shoes from an online retailer).

 Business to Business (B2B):

When a business sells a good or service to another business (e.g. A business sells
software-as-a-service for other businesses to use).

 Consumer to Consumer (C2C):

When a consumer sells a good or service to another consumer (e.g. You sell your old
furniture on eBay to another consumer).

 Consumer to Business (C2B):

When a consumer sells their own products or services to a business or organization (e.g.
An influencer offers exposure to their online audience in exchange for a fee, or a
photographer licenses their photo for a business to use).
[ CITATION
Sho20 \l 1033 ]

 1.3 History of Ecommerce in Nepal

The history of e-commerce isn’t that much interesting in Nepal. Initially e-commerce was
introduced in the country just for sending gifts to Nepal, which was mainly for the people
of Nepal living outside the country. People outside the country were given an option to
send gifts to their loved ones in Nepal. This just started the concept of e commerce in
Nepal.
But still got no positive response from the people. Later on online stores were also
developed but that were just virtual one having no products at the back end. The purpose
of these virtual stores in Nepal was just to bring the awareness of e-commerce in the
people. Now there are more than couple of dozen websites who are offering services in
Nepal. Daraz is one of the top among them.
List of top 10 ecommerce websites in Nepal:
 Daraz Nepal
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 Sasto Deal
 NepBay
 Hamrobazar
 Muncha
 Shopmandu
 Saujistore
 Phuche
 Esewapasal
 Bhatbhateni Online
 Esewa.com
[ CITATION
Hot20 \l 1033 ]

 1.4 SWOT Analysis of Ecommerce in Nepal

Strengths:
• With the influx of latest technology from neighboring countries, such as India,
Nepal is on its way to success through e-commerce.
• Many online portals and shopping portals above 20 are launched now.
• Also getting feedback from consumers instantly via social media sites and other
digital modes has been easier to improve the service and product.
• People are showing more trust in these marketplaces that offer a range of products
from electronic items to home appliances to apparels.

Weaknesses:
• Government tax policies and cross-border customs regulations.
• Unavailability of adequate and secure payment solutions.
• Shipping and handling standards and Internet access costs.
• Most people don’t own credit cards, these companies have found a way to not
only find a niche but also entice more people to opt for shopping online.
• Cash on delivery becomes the other problem with a lot of cases of goods being
returned.
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• The average age of customers buying online is 21 years and the business is mainly
Kathmandu centric.
• Very few banks in Nepal have a proper system of online payment. Less than five
per cent of Nepali buyers as of today use online payments. “A lot of work has
been going on to connect all the banks so that interbank transfer across the border
will be easier.

Opportunities:
• The market size of e-commerce in Nepal is USD 75.4 million and is multiplying
three times every year.
• Improvement in the Internet infrastructure and government regulations, which
would create cheaper and more reliable online services and better payment
gateways.
• Smartphones have penetrated the market in Nepal, giving rise to changing market
trends and customer expectations. This wireless technology has enhanced
ecommerce capabilities and changed the way how people do business today.
• Compared to developed economies where the e-commerce industry has faced a
boom and matured, developing economies such as Nepal have a lot of room for
expansion and development.

Threats:
• Offline purchasing in Nepal still dominating the market.
• The market is fragmented and involves a lot of small players.
• Challenges of service providers is the longer payment cycle where small sellers
suffer the most.
• Online markets in Nepal are not competing with each other but trying to make a
secured place for themselves.
• Considering Nepal to be a high risk zone, Nepali cards were not allowed to be
used in e-commerce in other countries until a couple of years ago.
[ CITATION
Mgm16 \l 1033 ]
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Chapter 2 : Conceptual Analysis

 2.1 Challenges and problems of Ecommerce in Nepal

E-commerce in Nepal is starting to get accepted by many, especially inside Kathmandu
Valley, but like any industry, it is not free from challenges. As the whole world is
walking towards the digital era where even shopping can be done online, Nepal has also
made quite a progress on this field though not as much compared to the e-commerce
giants of the world.

E-commerce refers to buying and selling of products and services over the internet, be it
through a website or social media. E-commerce has made it easier to buy a wide variety
of products and get it delivered right at your doorstep. Searching, comparing, reviewing
and buying of products and services has never been easier. The current leaders of e-
commerce in Nepal are undoubtedly Daraz, SastoDeal, Hamrobazar, Nepbay, and many
more small companies are following these trends.

The e-commerce market in Nepal is getting crowded day by day where smaller startups
are trying to earn their place. With new e-commerce being established at a rapid phase,
the total e-commerce market is estimated to worth more than 25 million which will easily
triple in coming days. The future of e-commerce in Nepal is bright. Even the e-commerce
giant Alibaba has made a large investment in one of the top e-commerce of Nepal i.e
Daraj. This itself proves that the market is going to get quite competitive in the coming
days. However, the challenges in e-commerce can’t be neglected, especially not in Nepal.
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[ CITATION Tec19 \l 1033 ]

Traditional Shopping Habit:
If you have a typical Nepali upbringing, you must realize that it’s our moms who do
shopping for us. Come Saturday or any occasion (which are likely in Nepal), mom is
ready to do some shopping, it’s their favorite chore. To go to the bazaar, chat with
vendors, bargain to the fullest and get things done. Guess what, e-commerce isn’t for
them. Ordering something they can’t touch, feel or bargain doesn’t appeal to them despite
many of the youngsters love doing so.

Lack of trust:
If there’s one thing, online business has failed to achieve in Nepal, it’s the inability to
develop the trust among the demographics. People strongly believe that they don’t do
business fairly when it comes to the quality of the products. Imagine buying shoes which
look awesome in the photo but real douche when delivered, it will certainly not give a
good feeling. And once the trust is broken, it takes an awful lot of time to regain it.

Lack of an effective payment gateway:

All of the locally based e-commerce sites have been using cash on delivery payment
system which though seems the country compatible is not an effective one. Even though
various online payment services like esewa, Khalti, ipay are prevalent in Kathmandu and
few cities, they have not been effective since most of the people are still skeptical about
them. Also, most of the Nepali still do not possess bank accounts and are ignorant about
e-banking.

Lack of e-commerce friendly rules:

Nepal government hasn’t come up with the rules that favor e-commerce business. One of
the difficulties lies in the payment gateway during a trans-country transaction. An e-
commerce business based on Nepal cannot open a PayPal account until it has a dollar
account abroad. Also, the lengthy bureaucratic process and unstable economic policy of
Nepal Rastra Bank are the major hurdles.
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Lack of Proper Address System:

The main objective of e-commerce is to get the product delivered to the doorsteps. With
complicated and incomplete address system in Nepal, this is not possible. What most e-
commerce companies do is make a call during delivery and agree to meet at a certain
known place. Nepal has yet to solve this problem. This problem is not only a challenge to
the e-commerce sector in Nepal, but it’s also an issue to many other industries.
[ CITATION Ris20 \l
1033 ]

Chapter 3 : Conclusion

We must create history not become a history. If business persons are always active on the
development, process and the business policy and strategy on Ecommerce business for
their clients surely E-business will Boom. However, E-business should offer different
online payment system verification. Payments should be easy and safer. Every
individual’s trust must be built by business owners. Time has come to take ones business
online compulsorily in this IT era, so if you are thinking of being a successful
businessperson start your online shop today!!! But you must be aware of the problems
and prospect of it and be aware of threats and weaknesses and you should be able to fully
take advantages of your strengths.

E-commerce in Nepal has just started to develop from its infancy and requires a lot of
infrastructures before it can really penetrate the large population using the internet. A
careful analysis and perseverance will surely pay off as the country is finally over its
transition phase.
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 Write a brief Note on Literature review.

Chapter 4 : Literature Review

 4.1 Meaning
Research work traditionally defined as gathering data that can help to answer the
questions about various aspects in the concern subject. The research work may be asked
to provide answers to questions of theoretical interest to particular discipline. This may
include such questions which have no interest to the society

The research in social science and management are concerned with human being, which
is attach to its surroundings. The organizational behavior is an important part of the focus
of research in management and social sciences and researcher must consider this part
carefully to come to conclusion.

The concepts of validity and reliability provide the criteria by which we need to judge our
choice of research methods. These criteria determine the credibility and academic value
of research work. Research should not considered as academic activity only, it also
applies to all the respect of human activity. Research is basis for making decision
effective and more meaningful. It includes the defining of research problem, formulating
hypothesis, collecting of data, analyzing of data and arriving to conclusion.
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 4.2 Importance of Literature Review

• To define and limit of the research

• To place your study in an historical perspective
• To avoid unnecessary duplication
• To evaluate promising research methods
• To relate your findings to previous knowledge and suggest further research

A good literature review, therefore, is critical of what has been written, identifies areas of
controversy, raises questions and identifies areas which need further research.
[ CITATION Lit19 \l 1033 ]

 4.3 Purpose of Literature Review

Conducting a literature review is a means of demonstrating the author’s knowledge about
a particular field of study, including vocabulary, theories, key variables and phenomena,
and its methods and history. Conducting a literature review also informs the student of
the influential researchers and research groups in the field.

• Report on knowledge and ideas that have been established on a particular topic,
including their strengths and weaknesses while they allow you to discover the
agreed academic opinion on the topic while at the same time letting you find out
the disagreements on the same subject.
• Position your research project within the body of literature and thereby provide
perspective for the reader.
• Demonstrate your knowledge of the subject area.
• Determine what each source contributes to the topic.
• Understand the relationship between the various contributions, identify and (if
possible) resolve contradictions, and determine gaps or unanswered questions.
• Justify your choice of research design; for instance, your choice of qualitative
over quantitative approaches, or your method of data analysis.
• Clarify how your work fills a gap in the scholarly literature.
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[ CITATION
Uni20 \l 1033 ]

References
Hotgk, 2. (2020). About History Of E-Commerce In Nepal And Scope Of Ecommerce In Nepal. Retrieved from
http://hotgk.com/: http://hotgk.com/about-history-of-e-commerce-in-nepal-and-scope-of-ecommerce-in-
nepal

Literature & Research Methodology, 2. (2019). Review of Literature & Research Methodology. Review of
Literature & Research Methodology, 19 - 21.

Mgmtref, 2. (2016). E-Commerce/E-Business in Nepal : Prospects and Challenges. Retrieved from

https://mgmtref.wordpress.com/: https://mgmtref.wordpress.com/2016/07/16/e-commmercee-business-in-
nepal-prospects-and-challenges/

Risingjunkiri, 2. (2020). The Scopes And Challenges Of e-commerce In Nepal. Retrieved from
https://risingjunkiri.com/: https://risingjunkiri.com/the-scopes-and-challenges-of-e-commerce-in-nepal/

Shopify, 2. (2020). Business encyclopedia. Retrieved from https://www.shopify.com/:

https://www.shopify.com/encyclopedia/what-is-ecommerce

Techbytesonline, 2. (2019, 2). E-Commerce Trends in Nepal and Its Chalenges. Retrieved from
https://techbytesonline.com/: https://techbytesonline.com/e-commerce-trends-in-nepal/

Unisa, 2. (2020). How to write a Literature Review: Purpose of a literature review. Retrieved from
https://libguides.unisa.ac.za/: https://libguides.unisa.ac.za/literature_review/purpose
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