PROJECT ON E-COMMERCE SITE IN

NEPAL
ACKNOWLEDGEMENT
This report have been concluded to observe about E-commerce in nepal.
This report is based on the brief information of online shopping with the objectives
and importance.
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 would
like to some of my friend who help me while preparing this project.
I’ve put 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 I apologize for any
mistakes and look for any sort of comments,criticisms which will help us generate
better reports in the days to come.
LIST OF FIGURE

FIG:1 B2B MODEL

FIG:2 B2C MODEL

FIG:3 CATEGARIZATION OF PRODUCT

FIG:4 PURCHASE DETAILS

FIG:5 ORDER DETAILS

FIG:6 PRODUCT PAYMENT

FIG:7 PRODUCT WITH WRAPPER

FIG:8 PRODUCT
TABLE OF CONTENT
Chapter PAGE
CHAPTER 1: INTRODUCTION
1.1 Concept of E-Commerce....
1.2 E-Commerce in Nepal
1.4 Introduction to Daraz
1.5 Buisness Model
CHAPTER 2: COMPANY PROFILE
2.1 Objective of Daraz
2.2 Item available in Daraz.com
2.3 Buying Proces
2.3.1 The buying process
2.4 Payment method
CHAPTER 3: ADVANTAGE AND DIS-ADVANTAGE
3.1Advantage
3.2Disadvantage
Chapter 4: CONCLUSION
CHAPTER 5:REFERANCE
1)INTRODUCTION

1.1CONCEPT OF 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 E-commerce 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 Trillon by 2020.

1.2E-COMMERCE IN NEPAL

Online shopping in Nepal dates back to 2000 with the launch of Muncha and Thamel
Dot Com the same year. Thamel dot com used to sell Khasi online during Dashain. Nepalis
living abroad would order Khasi for their family back home and make payment . After receiving
the money, Thamel dot com would deliver the Khasi to the doorstep of their family. Although
this was limited to just Kathmandu Valley, this marked as start of ecommerce business in Nepal.
Currently, there are few ECommerce websites that are operating in Nepal . 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 Bhatbhatenionline , 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.

1.3 INTRODUCTION TO DARAAZ

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 20. 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. 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 fast growing 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.
payment system partnering with major banks of Nepal.
Daraz Nepal has been highly successful in the field of online shopping. It highly successful to
hold people’s attention and try to provide them a better quality of shopping experience. In
today’s busy life no longer people reached one store to another store for buying products at a
suitable price which they can afford or to get the best deal. It wastes time for people and energy
loss. Therefore, e-commerce gives people an easy lifestyle. it gives an opportunity to all
customers to gain knowledge in an online shopping experience which is done by just one click in
a second. Through online shopping, App’s in a second customer order their favourite products
from their favourite stores without traveling to shop destinations or without wasting time.
It is quite easy for the buyer to choose their essential product in a few seconds.
1.4BUISNESS MODEL

1.4.1Buisness to Buisness(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.

FIG: 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.
 Buy-side Marketplace: B2B model in which organization buy needed products or services
from other organizations electronically often through a reverse auction.
 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.

1.4.2Business 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.

FIG: 2

Common B2C e-business models include e-shops and e-malls.

 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.
 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) COMPANY PROFILE

2.1OBJECIVE OF DARAZ
 Daraz will focus on gaining the market by creating loyal customers by providing the
biggest selection of different items in lowest price
 By fulfilling the orders effectively and efficiently, customer experience will be improved
 Different support services will be designed to help the sellers grow with Daraz.
 Effective recruitment, training, retention and coaching will be done to achieve the
mission of Daraz and create valuable resources for the company
 Building an effective culture for the company where the employees get the opportunity to
grow and contribute to the company
 Ensure a great experience for the buyers while flourishing our business by working
closely with the sellers

2.2CATEGERIZATION OF PRODUCT
 FIG:3

2.3Buying Process
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 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.
FIG :4
FIG: 5
2.4Payment method
There is option of:
 Debit/credit card
 Cash on delivary
 E- Wallet
FIG : 6

FIG: 7 FIG:8
3) ADVANTAGE AND DISADVANTAGE

3.1ADVANTAGE OF E-COMMERCE

a)24/7 services: Time factor can be considered as one of the most important factors which
improve or increase sales. In this business, time restrictions have been eliminated by e-
commerce. It is done through a web-based technology business that executed the business
nonstop that is 24/7.
b)Cost effective: The transaction cost is effectively less. Also, it reduces the marketing cost,
upgrades processing, inventory management, customer care, and so on. E-commerce has been
verified to be an extremely cost-effective pathway to get the product or goods at a regional price.
Online shopping and management of details information are interconnected with the 14
customers. This can be collected impressively and help in promotion. E-business is cheaper than
a traditional business.

c) Power to choose: Online shopping sites always give an opportunity to the customers to look
for varieties, higher quality, and cheaper products. It leads them to make choices. In this
business, consumers can buy specific and unique products and discover straight assemble the
product at very lower prices. They also include reviews of other consumers which help the other
new consumer to make decisions about the products.

d) Easy to set up: it is easy to access by sitting in the home by the help of the software required
for the online platform and internet.

e) Government subsidies and no geographical boundaries: Due to the rise in online trading
and online business, the government is trying to promote digitalization in the online sector. No
limitation in the geographical area which means anyone can order anything from anywhere at
any time with the help of the internet.

3.2.Disadvanatage

a) Limitations in Technology
:
One of the major disadvantages of e-commerce is internet limitation. Due to a lack of
knowledge, the maximum number of people is lagging behinds from utilizing the inter-net and
comprehending online transactions. Sometimes customers don’t want to reveal their personal and
private information because they have trust issues.

b) Security issues
There are lots of spam and fraud activities going on in online shopping. When we talk about
security issues, there are so many issues regarding their financial de-tails while doing electronic
commerce. The online business platform has different bugs and errors occur during the
transactions. People do not believe to do online business because they have been experiencing
several incidents regarding fraud and faulty payment.15

c) Unsuitable for perishable items Perishable items are especially food that needs a proper
warehouse to store. So, for online business perishable goods are not suitable. Nowadays, People
choose traditional methods of shopping for perishable items.

d) Ecommerce is not free We all know that e-commerce is not free. Many small businesses are
lagging behinds because of poor internet facility. People need the internet to do the shopping and
to do online payment and transactions. Mostly the internet is not used properly by every-body
especially in undeveloped countries and developing countries where the penetration of the
internet is not adequate.

4)CONCLUSION
Daraz is one of the leading e-commerce site.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.
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.
The suggestion can be:
 It is Kathmandu valley centic,it should be accessible all over nepal.
 There is difficulty in online payment as various problems occurs, so it should be
payment friendly
 Product should be provided with minimum profit margin.
 Delivery services should be made as quick as possible so as to achieve customer
satisfaction.

5)REFERANCE
 WWW.DARAAZ.COM
 WWW.COURSEHERO.COM
 PATHAK CHIRANJIVI THESIS
 PAST YEAR SENIOR PROJECT