TRIBHUVAN UNIVERSITY

NEPAL COMMERCE CAMPUS

Minbhawan, Kathmandu

PROJECT REPORT
ON
DARAZ.COM

Submitted By: Submitted To:

Anisha Rauniyar Mr. Kumar Lohala
Saru Shrestha
Nirjala Acharya
Barsha Adhikari
Saroj Basnet

( In partial fulfillment of the requirements for the Course E-Commerce )

Minbhawan, Kathmandu

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 .We would like to take this opportunity to thank them all. We are
thankful to our teacher Mr. Kumar Lohala for his guidance and motivation. We thank
him for providing such a golden opportunity to prepare this report. We express our
sincere thanks to our friends for their time and advices to sharpen the contents of
this study.

We’ve put in our 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.
LIST OF FIGURES

Figure:1 Items available in daraz.com

Figure:2 Buying process in Daraz
Figure:3 Business models used in Daraz
Figure:4 Survey result of age group Figure:5 Survey
result of gender
Figure:6 Survey result of profession
ABSTRACT
This report is based on the brief information on online shopping with the objectives
and importance. This report, in an introductory phase encompasses 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
prospects of Daraz.com, which contains of background of Daraz, short history of
Daraz, infrastructure 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 challenges
and threats on 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.

Under the preparation of this report data were collected in two phases; one by
telephoning the Daraz’s personnel and second was by telephoning the consumers of
Daraz.

In a whole, this report does a SWOT analysis of Daraz.com. Finally, the report
highlighted some of the important aspects of online shopping in Nepal.
TABLE OF CONTENTS
Chapter page no
CHAPTER 1: INTRODUCTION...............................................................................1
1.1 Background of study............................................................................................1
1.2 Introduction to online
shopping...........................................................................2
1.4 Methodology of
study..........................................................................................3
1.5 Limitations of study.............................................................................................3
CHAPTER 2: COMPANY PROFILE........................................................................4
2.1 Structure of
daraz.com:........................................................................................4
2.2 Item available in Daraz.com................................................................................6
2.3 Buying and selling process:.................................................................................7
2.3.1 The buying process:......................................................................................7
2.3.2. The selling process:......................................................................................9
 2.4 E-commerce
used:................................................................................................9
2.4.1 Business to business (B2B):..........................................................................9
2.4.2 Business to consumer (B2C):......................................................................10
2.5 SWOT analysis of DAraz.com:..........................................................................12
2.5.1 SWOT analysis............................................................................................12
Strength................................................................................................................1
2
Weakness:.............................................................................................................1
2
Opportunities:.......................................................................................................1
2

Threat:..................................................................................................................1
2
CHAPTER 3: WEBSITE ANALYSIS OF DARAZ.COM.....................................13
3.1 Web
Usability:....................................................................................................13
3.2 Customer Satisfaction:.......................................................................................13
3.3 User benfits from Web
usability:........................................................................13
3.4 Providers benefit from
usability:........................................................................13
3.5
Navigation:.........................................................................................................14
3.6 Site
map:.............................................................................................................14
3.7 SEO:...................................................................................................................14
3.8 About us contact us
pages:.................................................................................14
3.9 Meta
Title:..........................................................................................................14
3.10 Meta
Description:.............................................................................................14
CHAPTER 4: OBJECTIVES OF THE STUDY.....................................................15
CHAPTER 5: FINDINGS AND ANALYSIS...........................................................16
5.1 Age Group:.........................................................................................................16
5.2 Gender:...............................................................................................................17
5.3 Profession:..........................................................................................................18
CHAPTER 6: CONCLUSION AND SUGGESTIONS...........................................19
6.1 Conclusion..........................................................................................................19
6.2 Suggestions........................................................................................................19
Bibliography...............................................................................................................20
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CHAPTER 1: INTRODUCTION

1.1 Background of study

The data driven for the preparation of this report is secondary data. Internet surfing,
consulting library, and literature review were the sources of the data. Daraz.com
previously known as kaymu.com was launched in Nepal in May 2014 backed by Asia
Pacific Internet Group, the leading online platform in Asia. After holding kaymu as a
name for 3 long years, it has turned into daraz.com a year ago.Since its launch, Daraz
has become Nepal’s fastest growing market place with more than 2,500 sellers
onboard and over 200,000monthly website visits. After rebranding Daraz has totally
revamped almost all of its online entity, starting from its logo, name, landing page,
Facebook page and even domain name under which it was hosted. Added to that, it
has also introduced its mobile apps, the Daraz app, available for both android and
iOS. We are surveying on Daraz.com with the aim to review the following steps:

• The history of online shopping in Nepal along with daraz.com, applications of

online shopping, possible threats and security concern, and ethical issues
regarding this subject matter.

• The business model daraz.com uses, infrastructure they employ for smoothen
their operation, security mechanism itadapts to secure consumers’ personal
data, and payment mechanism; cash or credit cards and more.

• To know the impact of online shopping in Nepal.

• To overview the applicability of online shopping in Nepal.
1.2Introduction to online shopping
Online shopping is a form of electronic commerce which allows consumers to buy
goods and services from the seller over the internet. In the other words, online
shopping simply implies buying goods and services over the internet using web
browser. Consumers visit the website as per their interest according to their
preference on goods and services. In the context of Nepal, online shopping is
growing in a fast trend. It has not become even a decade since Nepal has been
introduced to online shopping. There are various online shopping sites established in
Nepal with the view of enhancing the easy buying and rapid services. Among these

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emerging sites, Daraz.com has become able to stand itself as competitive and
lucrative site in online shopping. It has just become three years since Daraz.com
previously known as kaymu.com has launched its operation in Nepal. Daraz is the
venture of Rocket Internet; Rocket Internet is a German company headquartered in
Berlin that builds online startups and holds shares in internet retail businesses.
Daraz.com in Nepal has brought great channeling for entrepreneurs to put their
products in the market and observe how growing online business helps them in a
situation where doing business is difficult due to banking regulations and limitations.
1.3 Methodology of study
Our report is based on research. So, we have made stringent effort to collect data
from various sources so that our report will encompass a wide range of information,
facts and figures. We have collected data from both primary and secondary sources,
however, we have relied more on secondary sources.

Under secondary method, we collected the information visiting the website

www.daraz.com.np and www.Google.com which were, indeed, full of informative
resources, which turn out to be vital.

Similarly, under primary sources we collected some information from the personnel
of Daraz itself from telephone and contacted the users of Daraz so as to know about
their perception towards online shopping.

1.4Limitations of study
This report is a partial requirement of practical exam of E-commerce of BBM seventh
semester conducted by Tribhuvan University. The report has been prepared and
submitted within a prescribed time. Although we did our best to make a
comprehensive study of this topic, there’re still some limitations. They are:

• Since the report is based on secondary data, the findings are based on
information collected.

• This report is conducted under the prescribed format by T.U. for the purpose of
practical exam report of Bachelor degree.

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• The study has been prepared under the constraint of the limited time. Thus,
detail analytical study could not be conducted.

• Personnel we contacted through telephone were quite reluctant to provide us

handful of information. So, primarily collected data may not be cent percent
relevant.

CHAPTER 2: COMPANY PROFILE

2.1 Structure of daraz.com:

Daraz.com is an online platform that allows customer to buy the branded products.
On daraz.com.np every product belongs to popular brand. They don’t offer any local
product here. In short span of time daraz.com.np has grown a lot. They are number
one online market place of Nepal. Operation of daraz.com is far more different from
other typical organizations. There are total 8 departments on daraz.com. These
departments are:

1. Sales: The work of sales is to source the buyers who provide quality products,
give best service. They sign up the sellers with Daraz. Sometime they had to go to
capture the picture of the products along with photographer team. They had to
negotiate about the commission. They try to provide the best price of the
product after negotiating with sellers as there is no chance of bargaining because
the product price given in the website is fixed.

2. Seller management : Seller management manages the sellers account. Help

them to give ads, maintain their orders. Help them to be top sellers. To stimulate
the sales of the seller they try their level best with the promotion or any types of
problem they faced. If any complain generates against the product quality or
delivery service of sellers basically they deal with those issue.

3. Human resource : Human resource deals with the recruiting, selection,

compensation, promotion, taking interview, leave related issue, managing
turnover rate, record of overall performance etc.

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4. Finance: Finance department takes care of Daraz’s financial works. They take
care of planning, investing, expenses, future forecasting etc.

5. Administrator: There work is to deal with the other country managers, overall
planning, monitoring the workforce, changing in work. More or less admin take
care of each and every sector.
6. Public relation: Public Relation works with different parties who are attached
with Daraz, arranging different events, deals with the reputation of the
organization or if any problem arises or crisis handling.

7. Quality control: Quality control department deals with product listing, giving the
details of product, approve the listings, uploading the product pictures and
editing of the pictures. Moreover they also ensure the quality of the product
which is going to upload in the website.

8. Customer service: customer service of Daraz.com.np is bit different than other

organization. They had to validate the orders, order processing, receiving the
inbound calls, and handling complains. They had to ensure the customer is
satisfied so that they buy again.

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2.2 Item available in Daraz.com
Daraz is an instant solution for purchasing varieties of items of goods under a same
website. Different sellers offer verities of items of products on Daraz website. Buyer
can easily find and know about the products from daraz’s webpage and order them
easily. The product lines of Daraz are shown below:

Clothing Footwear Jewelry

Men's clothing Men's shoes Rings
Women's clothing Women's shoes Earrings
Men's Accessories Kids' & Babies' Shoes Bangles & Bracelets
Women's Accessories Shoe Accessories Necklaces & Pendants
Kids & Babies Clothing Jewelry Sets Sunglasses Other Jewelry

Watches Mobiles & Tablets Computers

Men's Wrist Watches Mobiles Laptops
Women's Wrist Tablets Printers & Scanners
Watches Mobile Accessories Desktop PCs
Kids' Watches Computer Accessories Unisex Watches

Electronics Home & Living Health & Beauty

Cameras Home Appliances Skin Care Audio Home Decor
Hair Care
TV & Video Furniture Perfumes
Gaming Kitchen & Dining Cosmetics
Other Electronics Gardening Medicine & Health Power Banks Care

Toys, Kids & Babies Books & Media Sports & Outdoors
Toys Bengali Books Cricket
Baby Products English Books Football
Gifts Movies & DVDs Sports Equipment Magazines
Sports Clothing
Music Sports Shoes Stationary Fitness
Equipment

Figure1: items available in Daraz.com

2.3 Buying and selling process :
Unlike other websites, Daraz provides very flexible and user friendly process for both
the seller and buyers to get registered in the website. Both the process is described
below:

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2.3.1 The buying process :
To purchase something, one must have an account in daraz. One simply needs to
register by providing some basic information (name, address, birthdate, phone
number etc.). Once buyer likes something s/he places an order by clicking buy now.

After this, a text message/email is sent with a code to validate the purchase. If the
buyer validates it, the seller can see it when they login to their account and then
seller is responsible for calling up the buyer, confirming the order, answering to any
necessary queries, and deliver the product. If the buyer is unable to validate the
order, a customer service agent from daraz calls the buyer up and validates the order
and then the seller’s process starts as mentioned above. This process generally takes
about 2-5 working days and the buyers usually get it by then unless there are other
issues.

Most sellers provide cash on delivery to buyers. Following is the process showing
how customer can buy through Daraz’s website:

• Select the desired category

• Click on the desired category
• Customer can see all the product under that category
• Click on the preferred product
• The customer need to register his/her own account

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Figure 2: Buying process in daraz
• The customer will get the email
• Verify the email
After verifying the seller will get an email from Daraz regarding the order and
accordingly s/he will deliver the product to the customer.

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Figure 3: Product detail
2.3.2 . The selling process :
To sell through daraz, one needs to have an account as well. Once an order is placed
it is showed in the account where details of the buyer is given with the product
details (the one that the buyer choose.). The job of the seller is to contact the buyer,
confirm the order, answer queries of the buyer (if any) and deliver the product. The
seller pays daraz a percentage commission on the final sale amount.

The advantage seller gets is the fact that the product stay with them so they are not
stuck with stock that hasn’t sold. Also they get free marketing via Daraz.

2.4 E-commerce used :

2.4.1 Business to business (B2B ):

B2B e-commerce is simply defined as e-commerce between companies. These are
the type of e-commerce that deals with relationships between and among
businesses.Daraz.com also perform buying and selling of goods to the business
organizations. The product of business organization can be sold through
daraz.comdaraz.com sells its product an intermediate buyers who the sell the
product to the final consumer.

Figure 4: B2B model

Following are the architectural models in B2B e-commerce:

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 1. Sell-side marketplace: B2B model in which organizations sell to other
organizations from their own private e-marketplace and from a third party site.
The key mechanisms in the sell-side model are: Electronic catalogues that can be
customized for each large buyer and forward auctions.

2. Buy-side Marketplace: B2B model in which organization buy needed products or

services from other organizations electronically often through a reverse auction.

3. Electronic Exchange: Refers to e-market place where there are many buyers and
many sellers; open to all business organization. Also known as e-hubs or portals.

2.4.2 Business to consumer (B2C ):

B2C e-commerce is simply defined as e-commerce between business and consumer.
These are the type of e-commerce that deals with relationship between and among
businesses and final consumer. Daraz.com have helped consumer to get product
easily. Consumer can get desired product through online with the help of this
website; daraz.com. Daraz.com.np can be the example of B2C because customer can
choose their product and place their order. The B2C model of e-commerce is more
prone to the security threats because individual consumers provide their credit card
and personal information in the site of a business organization. For example; we
need to register in Daraz.com.np to purchase something. While registering process
we need to provide our detail. In addition, the consumer might doubt that his
information is secured and used effectively by the business organization. This is the
reason why B2C model is not widely accepted.

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Figure 5: B2C model
Common B2C e-business models include e-shops and e-malls.
1. E-Shops: It sometimes referred to as an e-store or e-tailer, is a version of a
retail store where customers can shop at any hour of the day without leaving
their home and office.

2. E-Mall: It consists of a number of e-shops; it serves as a gateway through

which a visitor can access other e-shops. An e-mall may be generalized or
specialized depending upon the product offered by the e-shop it host.
2.5 SWOT analysis of Daraz.com :
SWOT analysis is a method used to evaluate the Strengths, Weakness, Opportunities
and Threats involved in a project or an organization. Strength of a business gives
advantage over other. Weakness places the business at a disadvantage relative to
others.

SWOT analysis of Daraz.com is shown below:

2.5.1 SWOT analysis

Strength

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• They recruit young and energetic people for their organization. They believe that
this type of organization needs young people because it is not like traditional
organization.

• Its marketing policy is also strength. They arrange different contest and
competition.

Weakness:
• Daraz.com has some problem with their operation process. To source more
sellers sometimes they don’t judge capability whether they are capable enough
to business with Daraz or cope with the process.

• Inability to improve the state of goodwill they possess in the market.

Opportunities:
• People are more interested to do side business. Daraz is helping them do so.
Already they have above 10000 sellers. If they can properly manage, it will
increase more.

• A lot of people are using internet now a days, and the internet subscription rate
is growing at a satisfactory rate, so it is also an opportunity for an online market
like Daraz.com.

Threat:
• Since there are lots of online shops now days, it can be threat form Daraz.
• The delivery charge and delivery period is quite long, if they can continue their
business with same charge and delivery time, they can gradually lose market
share as competitors always tries to take advantages.

CHAPTER 3: WEBSITE ANALYSIS OF DARAZ.COM

To analysis the daraz website properly, we need to do a proper analysis of other

factor like web usability, Meta title, Meta description, SEO, site map and etc. which
are listed below:

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3.1 Web Usability :
In e-commerce, web usuability is all about customer satisfaction and the tools and
imagination organization and professionals use to achieve and maintain related
destination. Web usuability is the ease of useof internet site. Some broad destination
of usability are the intro of information and alternative in a clear and concise way, a
lack of ambiguity and the arrangement of important particular in appropriate
areas.simply usability is the extent to which a product can be used by specified users
to achive specified goals with effectiveness, efficiency and satisfaction in a specified
context of use.

3.2 Customer Satisfaction :

The quality of the online relationship with your users and how well your website
meets theirs needs has a direct influnce on your bottom line. Web usability testing is
often conducted to find out what users expercience are on a website, and the
feedback from customers are used to implement improvements.

3.3 User benfits from Web usability :

Our visitors can benefit from usability, because: They will be satisfied, not frustrated,
with the entanglement web site or Cartesian product. They will enjoy interacting
with the web site or product. They will achieve their goals effectively and efficiently.
They will cultivate confidence and trust in the product or web site.

3.4 Providers benefit from usability :

As a supplier, you may benefit from unstableness in many ways, including: Reduced
growing time and costs, reduced support costs, reduced user errors, reduced training
time and cost, Return key on Investiture.
3.5 Navigation :
Navigation refers that how many layers you have and how is your menu. For a good
navigation of a website it should have maximum three layers. In daraz.com’s
website, it has four (04) layers.

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3.6 Site map :
In the definition of site map we may say that site map is a file where you can list your
web pages to tell Google and other search engine about a company and its content.
In our website, daraz Nepal has a site map and it is well organized.

3.7 SEO :
It plays a vital role to improve the visibility of a website or search engine and to
ensure a better usability for human visitor. SEO stands for Search engine
optimization. SEO can improve your website traffic. Daraz Nepal has not proper SEO.
While you will search for the best online shopping in Nepal then it will not show you
the DAraz.com.

3.8 About us contact us pages :

About us page option is for informing the customer and seller about the company
and letting them know about the current promotions and news.

3.9 Meta Title :

Meta title is some keywords which are used to find the particular products or
website directly from any search engine like- Google, yahoo and etc. in Daraz.com.np
they do not have proper metatitle and that is why they do not have any organic
search position in Google.

3.10 Meta Description :

Meta description is similar to Meta title but in Meta description there will be short
descriptions where the items of products and services will be described.

CHAPTER 4: OBJECTIVES OF THE STUDY

 To determine the factors and attributes which influence online buying
behavior of consumers in daraz.

 To study the customer’s satisfaction level with regard to daraz online

shopping.

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 To identify the key product and service categories opted by Customers
depending on their profile.

 To know about the infrastructure and technology adopted by daraz.

 To know about the policies and strategies that daraz has formulated to gain
competitive position in the market.

 To know about strength, weakness, opportunities, and threats lying in front

of daraz.

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CHAPTER 5: FINDINGS AND ANALYSIS

From the above survey, we could find out that Daraz.com.np is one of the successful
online shops. Online shopping had been increasing now days. Daraz.com.np will face
lots of challenges in future as e-commerce industries in Nepal is growing. Ebay.com,
sastodeal.com, hamrobazar.com, amazon.com, and etc. are the competitors of
Daraz. So for being the best online e-commerce company of Nepal, it need to provide
best customer services cause with the best service, number of customer would also
increase.

Now days, most of the people perform online shopping for their ease. In addition
with this, it might be said that Daraz always relies upon the dealers or suppliers of
products because they are not storing the product.

After analyzing the survey statistics and secondary data, we have tried to narrate
them with my report objectives. Furthermore I have tried to find out customer
expectation and perception about Daraz Nepal. On the survey I have picked random
100 people through online. They put their opinions on the survey questioners. They
have measured the service quality of Daraz Nepal through several questions and
measurement scales, ratings and points. The findings are given below:

5.1 Age Group :

On the survey I have found that most of the consumer who purchase and visit daraz
website are in range of 20-25 years old. This age group also demonstrates the
maximum number of internet users. They have several choice of online shopping.
But generally their main concern is product quality, price, delivery duration and etc.

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Figure 5.1: survey result age group

5.2 Gender :
From the above survey I could find out that almost 65% male and only 35% female
participate in online shopping. From this data it can be said that more male visit
Daraz website than female.

Figure 5.2: survey result gender

5.3 Profession :
Getting known about the profession of the website visitor has a great importance.
From that idea, I wanted to know about the profession of the visitors. Here from the
survey I get to know that almost 70%visitor and consumer are students. However a
very less consumers are service holder are 29%. There are some consumer who is

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both students and service holder. Only 3% consumer is business man and 3% are
others. This data clearly gives an idea that daraz Nepal should emphasize on the
students specially.

Figure 5.3: survey result of profession

CHAPTER 6: CONCLUSION AND SUGGESTIONS
6.1 Conclusion
After the completion of this project, we come to know that Daraz.com is one of the
leading online shopping sites of Nepal. This site is adopting new technologies and
making the interface of the website user-friendly. Also it has been adding up new
products and services to the site putting the consumers’ preference, income, and
accessibility into account. It is rendering the easy selection of products, price
comparison, ordering, and fastest delivery of goods and services to the consumers. It
has provided the consumer compatible payment mechanism; cash on delivery, credit
card payment, and more. Daraz.com holds no inventory to itself thereby directly
providing platforms for the users in the both aspects of buyers and sellers. It caters
the wide range of products of various brands and the variety in products; electronic
gadgets and home appliances, fashionable wears and accessories for men and
women, books, and many more. Thus, it is the leading shopping site of Nepal.

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Likewise, with the help of this project, we can analyze the current situation of online
shopping in Nepal by relating Daraz.com to this scenario.

6.2 Suggestions
• This site is quite location centric that is it has highly centered itself to Kathmandu
valley more than other location. So this should initiate its operation to other
location too.

• Home delivery service is available in limited areas. So it should expand this

service to wide range of area.

• Delivery services should be made as quick as possible so as to achieve customer

satisfaction.

• It should make itself accessible to large range of consumers; affluent or non-

affluent groups.
Bibliography

 www.Daraz.com
 www.facebook.com
 www.Google.com
 Laudon, K.C. (2008), ecommerce business.Technology.Society
 www.truecommerce.com

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