A Report on “Daraz.

com”
An E-commerce Site

FOR THE PARTIAL FULFILLMENT OF BBA

6TH SEMESTER

TRIBHUVAN UNIVERSITY

SHANKER DEV CAMPUS

Submitted by: Submitted to:

Sheetal Karmacharya (22505) Mr.Sudip Raj Khadka
Aayushi Shrestha (22433) Faculty of E-commerce
Bhawana Adhikari (22443) BBA Department
Prajawal Adhikari (22478) Shankar Dev Campus
Rajiv Yadav (22486) Putalisadak, Kathmandu

July, 2022
 ACKNOWLEDGEMENT

We take this opportunity to express our gratitude to all the concerned people who directly or
indirectly have contributed towards the completion of this report.

We wish to express our gratitude to all the faculty members of Shanker Dev Campus. We are
very thankful to Prof. Dr. Keshav Raj Joshi, campus chief of Shanker Dev Campus, Mr. Ramesh
Kumar Poudel, BBA Director and Mr. Bharat Raj Pant, Deputy Director for providing us such a
learning experience.

We are sincerely grateful to Mr. Sudip Raj Khadka, our E-commerce facilitator providing us an
opportunity to work on a practical aspect of e-commerce. He provided us with his assistance and
support whenever needed that has been instrumental for the completion of the report.

Finally, we would like to acknowledge with much appreciation the roles of our colleagues for
their support in completing the project. Furthermore, special thanks to our parents for the
everlasting motivation, equipment and environment to complete this project.
 ABSTRACT

This study seeks to provide a preliminary assessment, evaluation, and comprehension of Daraz,
one of Nepal's most popular ecommerce sites. This investigation of Daraz and its operations
reveals that such an ecommerce site is running its operations while also making steady
advancement. After completing this research, you will have a better understanding of how an e-
commerce site like Daraz is handled and run, as well as the problems and issues that such a
platform faces.

Daraz is a global e-commerce firm with operations in Pakistan, Bangladesh, Myanmar, Nepal,
and Sri Lanka. It offers over 2.5 million items ranging from electronics to home, cosmetics,
fashion, sports, grocery, and more. Daraz Nepal is a major Nepalese e-commerce website that
began in 2016 as an online marketplace for companies offering anything from electronics to
home appliances to clothes. It's an online marketplace that brings buyers and sellers together. To
list their items on the platform, vendors must first register as a Seller on Daraz. Buyers may
purchase any accessible goods by picking it and adding it to their shopping cart, giving required
information and a trustworthy address, and paying using a variety of payment methods.
 TABLE OF CONTENTS

ACKNOWLEDGEMENT................................................................................................................I
ABSTRACT....................................................................................................................................II
LIST OF FIGURES.......................................................................................................................IV
CHAPTER ONE: INTRODUCTION..............................................................................................1
1.1 History of Daraz............................................................................................................1
1.2 Overview of Daraz Nepal..............................................................................................1
1.3 Procedure for becoming a Seller...................................................................................2
1.4 Procedure to sign up as Customer.................................................................................3
1.5 Procedure to buy in Daraz.............................................................................................3
CHAPTER TWO: BUSINESS PROCESS......................................................................................4
2.1 Online Opportunities.....................................................................................................4
2.2 Business Model.............................................................................................................5
2.3 Marketing Strategies......................................................................................................7
2.4 Payment Methods..........................................................................................................9
CHAPTER THREE: BUSINESS PROBLEM ANALYSIS & SOLUTION................................11
3.1 Problem Analysis........................................................................................................11
3.2 Solutions to problem faced by Daraz..........................................................................13
CHAPTER FOUR: HOMEPAGE OF DARAZ SITE...................................................................14
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20
 LIST OF FIGURES
Figure 1: Daraz Logo.......................................................................................................................1
Figure 2: B2C Model.......................................................................................................................6
Figure 3: Payment Methods.............................................................................................................9
Figure 4: Daraz.com.np Homepage...............................................................................................14
Figure 5: Daraz.com.np Header.....................................................................................................15
Figure 6: Daraz.com.np Logo........................................................................................................15
Figure 7: Daraz.com.np Navigation Menu....................................................................................16
Figure 8: Daraz.com.np Slider.......................................................................................................16
Figure 9: Daraz.com.np Sidebar Options......................................................................................17
Figure 10: Daraz.com.np Action Menu.........................................................................................17
Figure 11:Daraz.com.np Product Contents....................................................................................18
Figure 12: Daraz.com.np Footer....................................................................................................18
 CHAPTER ONE: INTRODUCTION

1.1 History of Daraz

Daraz is a global e-commerce firm with operations in Pakistan, Bangladesh, Myanmar, Nepal,
and Sri Lanka. Muneeb Maayr (Founder) and Farees Shah (Co-Founder) created Daraz in 2012
as an online fashion e-commerce platform in Pakistan, with funding from Rocket Internet, a
German investment incubation company. Daraz was converted to a general online marketplace in
2014, and it began to provide a wide range of items. In 2015, Daraz began operations in
Bangladesh and Myanmar. Daraz Group further extended its operations in Nepal and Sri Lanka
by acquiring Kaymu, a consumer-to-consumer online marketplace in South Asia, in July 2016.
They concentrated on such nations since they were unaffected by e-commerce behemoths such
as Amazon and Alibaba. Daraz Group was bought by Alibaba Group, a Chinese e-commerce
corporation, for an undisclosed sum from Rocket Internet in May 2018.

Figure 1: Daraz Logo

1.2 Overview of Daraz Nepal

(www.daraz.com.np)

Daraz introduced its business-to-consumer (B2C) model operation in Nepal in 2016 after the
acquisition of Kamyu Nepal, an e-commerce company. Daraz Nepal is currently wholly owned
by Alibaba Group and operates an e-commerce platform that offers a diverse selection of items
under a single virtual roof. Daraz's marketplace approach connects vendors and customers all
across Nepal by providing a platform and technology.
Rajeev Amatya, the founder and managing director of daraz.com.np, has been in charge of Daraz
Nepal. Their objective is to empower vendors while also providing an exceptional consumer
experience. Their purpose is to offer a wide range of items at the most competitive prices. Daraz
strives for improved customer satisfaction through convenience of purchase, comprehensive
customer support, and a hassle-free shopping and return experience.

Daraz is now recognized as one of Nepal's most popular and successful e-commerce businesses.
They also collaborate with delivery firms and payment partners to ensure that transactions run
smoothly. Furthermore, people's transactions have been made simpler and easier thanks to the
advent of the user-friendly smartphone app Daraz. The app is making a difference by bringing in
more consumers every day. Local Nepalese vendors will be able to export as well, according to
Daraz.

1.3 Procedure for becoming a Seller

Daraz are registering sellers from Kathmandu valley, Pokhara, Bharatpur, Birgunj, Janakpur,
Butwal and Biratnagar. To become an authorized seller in Daraz, following three steps should be
followed:

Step 1: Register with PAN/VAT, business bank account and list your products

 Fill the sign-up form with details about yourself

 Download the seller center app or log in with your credentials
 List your products by providing all relevant information

Step 2: Receive orders and sell across Nepal

 Start selling once products are listed

 Receive orders and manage them through seller center
 On receiving orders, simply package the order and leave the worry to Daraz

Step 3: Get payments and grow your business

 Receive payments directly in your accounts

 Expand your business
1.4 Procedure to sign up as Customer
Step 1: Go to www.daraz.com.np or download Daraz app

Step 2: Click on the Sign-up option

Step 3: Click on ‘Create an account’ or Connect using Facebook

Step 4: Enter your phone number and you will receive verification code

Step 5: Enter the verification code in SMS code and click Next

Step 6: Add your full name, email address and set up a password and click on Sign up

Step 7: Log in using your new email and password

1.5 Procedure to buy in Daraz

Step 1: Sign in with your Daraz account

Step 2: Type the product you are looking for in the Search bar

Step 3: Select the product, add on Cart and click on “Buy now”

Step 4: Proceed to Check out

Step 5: Fill the address and contact number and click “Save and continue”

Step 6: Check your order details and click “Save and continue”

Step 7: Select payment method and confirm your order

The products will be delivered inside Kathmandu valley within 2-3 working days from the date
of order placement and within 3-5 working days outside Kathmandu valley. The customer can
also trace the order and change or return the products.
 CHAPTER TWO: BUSINESS PROCESS

2.1 Online Opportunities

Daraz.com is South Asia's most popular online marketplace, linking thousands of vendors with
millions of buyers in Pakistan, Bangladesh, Sri Lanka, Nepal, and Myanmar. Customers may
browse ecommerce sellers' websites and order products they want to buy online, paying for them
using a payment gateway.

Some of the important online opportunities of Daraz.com are:

1. Rapid Growth in Internet Usage

In the recent days the use of internet has tremendously increased. There is easy access of high-
speed internet in major cities of Nepal. Every household have easy access to the internet.
Through the use of internet, the customer can interact and place their order for the product they
want to purchase via Daraz.com.

2. Rapid growth of ICT

Through the rapid growth in information communication and technology, many online
opportunities are available for the internet-based business. Technology enhances the use of
modern tools and techniques in order to achieve our business goals and opportunities. Similarly,
customer can get the reliable information and can easily communicate with the online business
vendors.

3. Social Media

The organization keeps tabs on social media sites like Facebook, Instagram and so on linked in
to track the posting of the common public on their products, services and any other matter related
to the company. The postings gathered from these social media will be used by the company to
improve its product/services, correct the processes and manage situations. It also enables Daraz
to inform the customers about the latest products and different offers available.

4. Market Research

Information on any products/services, market requirements, demands from various geographies

for a product, competitor’s business data and other market-related data are available on the
internet. These data will be useful for Daraz Nepal in market research and arrive in the marketing
strategy.

5. Ease of Daraz App

There has been huge rise in the use of Mobile applications. Daraz Nepal also has Daraz app
available which is user friendly. People can easily install the Daraz app and buy products from
there. The app makes it easier for the people to see the details of the products and to purchase
from the convenience of their home.

6. Cashless payment system

Daraz facilitates the online or cashless payment system. It is not must for the customer to pay
through cash. They can make the payment through their debit/credit card, mobile banking app
and digital payment app like e-sewa and khalti.

7. Search engine optimization:

Daraz has used search engine optimization to its great effect but still it has the potential of
expanding on search engine optimization by incorporating more key words to its repertoire.
2.2 Business Model
A business model is a description of how a company generates revenue. It specifies the items or
services that the company intends to sell, as well as its target market and any estimated costs.
There are many different ways to categorize E-commerce. It can be categorized on the basis of
transaction types or on the basis of relationship between the entities involved in the transaction.
Daraz can be classified as B2C model and B2B model.

Business To Consumer (B2C) Model:

All transactions that take place directly between a commercial organization and a consumer are
included in the B2C model. It is applicable to any company that sells its products to customers
through the internet. Ecommerce, or selling products and services via the internet, emerged as a
new B2C business channel with the emergence of the internet.

To supply goods and services to targeted clients, Daraz.com employs a B2C business model.
Daraz is an online marketplace that connects buyers and sellers. Sellers must first register as a
seller on Daraz by completing the necessary information, and then list their items. A customer
visits Daraz.com, chooses a catalog, places an order, and an email is delivered to the business
organization. The items are shipped to the buyer when the order is received.

Business Organization
Supplies
Order
Processing

Orders

Customer Website
 Figure 2: B2C Model

Business To Business (B2B) Model:

The B2B business model refers to any electronic products and service transactions that take place
between two businesses through the internet. Typically, retail enterprises purchase in bulk from
Daraz and resell to local clients.

2.3 Marketing Strategies

A marketing strategy is the long-term planning of the company's desired commercial outcomes.
Daraz has a marketing plan of its own. Daraz possesses everything that a corporation should
possess, as well as the ability to affect demand for its goods. In Nepal, the number of people
using e-commerce is rapidly increasing. People nowadays recognize the value of internet buying.
As a result, many individuals are familiar with the concept of internet marketing. They may buy
their preferred items with just one click from anywhere using the internet. Summer garments,
winter clothes, footwear, technology accessories, mobile phones, home and lifestyle accessories,
and a variety of other items are available. Daraz offers all of its items at a fair price to ensure a
positive market reaction.

Daraz sells all of their items at a fair price in order to get a favorable response from the market.
Daraz has addressed the "4 Ps" of marketing, which are product, pricing, location, and
promotion, in order to reach the end consumers.

1. Product/Service

Daraz Nepal is distinct from other Nepalese shopping portals. It gives its consumers the greatest
ecommerce experience possible. Daraz is only an internet store that does not create any goods. It
obtains products from authorized vendors in accordance with client orders/requirements and
delivers them to the appropriate customers. Daraz sells footwear, refrigerators, machine tools,
durable products, men's and women's clothes, home appliances, mobile phones, and electronics,
among other things. It contains over 8000 products and skilled authorized sellers to supply them
to the appropriate buyers.

The core mission of Daraz.com is to serve its customers and offer value in their service.
Daraz.com needs to keep tracking what customer wants and whether they are delivering value to
the customers what they have promised. The changing need of customers can be dealt with more
product line, value addition and continuous market analysis.

Daraz.com provides a wide range of services like:

 Order tracking
 Cross selling
 Cash on delivery
 Mobile App
 Daraz.com cares
 Daraz.com university: Sell on Daraz.com

2. Price
Daraz is attempting to develop its own ecommerce marketplace in Nepal. As a result, they strive
to contact with Nepalese marketers in order to learn about product costs in the offline market,
which helps them determine the product's average price. When compared to other Nepali
Marketers, Daraz's items are of comparatively great quality and affordable cost. For the sake of
the company's goodwill, Daraz offers its products at a low cost in order to increase brand
awareness and appeal. They employ different profit-generating techniques, such as a discount
offer, a 'women's week up to 50% discount,' a 'Dashain deal,' and so on.

3. Place
Daraz is an e-commerce platform that operates online. The website is where they sell all of their
merchandise. They have a contract with certain logistics to deliver the product according to the
customer's specifications. They also collaborate with delivery providers to guarantee that things
arrive on schedule. The items are delivered directly to the buyers' homes, resulting in customer
happiness and loyalty. Daraz notes that they are present across Nepal.

4. Promotion
The prime objective of promotion is to raise brand recognition, stimulate interest, generate sales,
and build brand loyalty. Daraz uses internet marketing and social media platforms such as
Facebook and Instagram to advertise their products. It guarantees that their advertisement
reaches their intended audience. Daraz has also launched many campaigns in order to gain a
larger audience. An excellent example is "Black Friday," which is regarded as the largest online
shopping event of the year, with shoppers receiving substantial discounts and special deals.

Daraz is currently implementing these marketing strategies as its primary form of

communication:

a) Advertising: Daraz has been spending a lot on advertising to inform its consumers about
the rebranding. It includes advertising in television commercials as well as printouts like
newspaper ads, booklets, and so on. It is also engaged in numerous social media
platforms such as Facebook, Instagram, Google Display Network as a low-cost
advertising platform.

b) Sales Promotion: Daraz uses sales promotion as one of its primary marketing techniques
to acquire clients. Daraz places a greater emphasis on customer promotion. Price
reductions, cash refund offers, discount offers, buy one get one free offers, new product
and brand promotion, gifts, and other consumer promotion methods are used.

c) Public Relations: Daraz has a distinct department in charge of the brand's public
relations. The PR manager is in charge of things like managing press relations and
presenting news & information about the company in the most optimistic light possible. It
focuses on Corporate Communication, with Daraz hosting a variety of college-level
seminars.
 d) Direct Marketing: Daraz also use Direct Marketing as an IMC strategy to develop long-
term relationships with its clients; thus, it employs customer direct methods to reach and
provide its services to them without any intermediaries. Direct marketers contact their
clients through a variety of methods, and Daraz use both direct & catalog marketing.

2.4 Payment Methods

Payment refers to the payment of the product's price as well as the delivery costs. Daraz accepts
different ways of payment method. They are:

Figure 3: Payment Methods

o Credit/Debit Card:

Daraz accepts both credit and debit cards for payment. Credit cards allow you to
borrow money from the card company up to a specified limit in order to make purchases or
withdraw cash. Debit cards allow you to spend money by drawing on funds in your bank
account. In order to make a payment, clients must pick Credit or Debit card and provide the
necessary card information. Daraz guarantees the security of this payment.

o E-sewa:

Daraz accepts payments using e-sewa, Nepal's leading digital wallet or payment
gateway. It enables customers to make online and offline payments to multiple businesses,
move funds to various banks, and do a variety of other things.

o IME Pay:
 Daraz accepts the IME Pay, which is another popular wallet system. IME Pay and
Daraz have agreed to collaborate on "Daraz Wallet Day." Every Sunday will be Daraz Wallet
Day, during which Daraz users will receive a 10% discount redemption code when shopping
with IME Pay.

o Cash On Delivery:

Customers can pay in cash at the time of delivery. They can pay in cash after
obtaining the purchased goods. Because the consumer only has to pay after getting the
product, it is the most secure payment option. It also enables them to check the ordered
products and if their expectations are not meet by the product, they have the choice to not
buy it.
 CHAPTER THREE: BUSINESS PROBLEM ANALYSIS &
SOLUTION

3.1 Problem Analysis

Daraz is a famous ecommerce portal that facilitates the delivery of products and services. It
mostly does business through an electronic payment method. The issue with Daraz may be
analyzed under the following categories:

o Identifying user validity:

Daraz is visited by a wide range of people. It's tough to tell if someone is actually
interested. Is their genuine name and contact information entered? All of the information they
enter might be a forgery.

o Customer Loyalty:

Ecommerce sites, particularly those operated by companies such as Daraz, are not
intended for one-time usage. Potential clients must interact with the website. It might cost up to
five times as much to attract a new client as it does to keep an existing one.

o Issues regarding online payments:

Credit card transactions are completed in real time when done online. Sometimes online
credit transactions fail for a variety of reasons, including the use of incorrect numbers, exceeding
the card limit, and so on. In other cases, the causes are less evident and may be related to credit
card issuers' ever-increasing fraud protection and other security measures taken to safeguard
cardholders from card abuse.
 o Issues regarding delivery of goods:

The delivery of items to the destination is a regular issue for Daraz. In many
circumstances, locating the real recipient is quite difficult. Such issues squander their time and
energy. Sometimes the products are given to the wrong individual, which causes further
problems.

o Unhealthy Competition:

Increased competition does not necessarily imply a rise in product and service quality at
the same rate. Many startups are also failing as a result of increasing competition. Many
businesses are unable to identify and define goals, and with every ecommerce seeking to feed in
all sorts of items, it's a game of pricing where the lowest one can survive. Thus, standing out in
the world is a difficult struggle and unquestionably a task. Furthermore, the e-commerce industry
is gaining popularity and fast expanding. Daraz's main competitors are Hamrobazar, Sastodeal,
Nepbay, Socheko.com, and Smartdoko.com.

o Lack of Trust:

Daraz's main issue in Nepal is convincing the audience that they can be trusted. Nepalese
consumers still like to view and feel the things before purchasing them. They want to scrutinize
the things carefully, haggle for them, and then buy them. Even if Daraz is a simple buy in other
nations, many individuals in Nepal are unable to perceive this due to a lack of competent
assistance.

o Privacy & Security:

Security is currently the second most important worry for clients when it comes to online
payments. People are concerned about their personal information being compromised by digital
payment services. The recent discovery that Facebook shared its data with Cambridge Analytical
has heightened consumer concerns about digital payments. If a person saves their credit card
information and other personal account information on their mobile device, they risk losing it
and becoming a victim of credit card fraud and identity theft. Similarly, there are applications
that are purposely built to appear trustworthy and safe, but in reality, make it simpler for
criminals to steal critical personal information or perpetrate credit card fraud.

3.2 Solutions to problem faced by Daraz

o Timely delivery:

The ordered things must be delivered on schedule. Daraz should experiment with on-
demand delivery. Customers who use on-demand delivery receive real-time monitoring and
information about the whereabouts of their product or delivery workers, allowing them to
organize their days rather than waiting at home for their package to arrive.

o Daraz app:

Customers can save time by using the Daraz mobile app. Customers will be able to browse the
deal with ease using the app. Because the app is extremely user friendly, users will have less
difficulties navigating the Daraz website.

o Daraz Mall filter:

Customers may shop at the Daraz mall filter directly. Daraz mall only has verified and legitimate
vendors. It exclusively sells high-quality items. Buyers will feel more secure as a result of this.

o Return & Exchange policy:

Daraz specifies the terms and circumstances for exchanging or returning a goods. If clients are
dissatisfied with the goods, they can swap or return it within the time frame specified. This type
of behavior fosters consumer loyalty.

o Parcel store:
Daraz specifies the terms and circumstances for exchanging or returning a goods. If clients are
dissatisfied with the goods, they can swap or return it within the time frame specified. This type
of behavior fosters consumer loyalty.
 CHAPTER FOUR: HOMEPAGE OF DARAZ SITE

The home page of a website is the opening page, usually located at the main website URL. The
main goal of home page is usually to:

 Welcome visitors
 Help them realize they are in the right place.
 Immediately make it clear what to do
 Guide visitors further into the website
 Figure 4: Daraz.com.np Homepage

Header

The website's header is positioned at the top. It consists of the site's logo, search box, and
navigation menu. The header is the zone at the top of the page that remains consistent and visible
while visitors navigate your site.

Figure 5: Daraz.com.np Header

Logo

The logo is prominently displayed at the top of your website. It is the foundation of the
company's branding and identity. The logo is a physical representation of your products or
services, and it is essential for clients to recognize and connect with your brand.
 Figure 6: Daraz.com.np Logo

Navigation

The navigation menu allows users to browse the website's other pages. The navigation area
functions similarly to a road map, providing visitors with an overview of the material as well as
assisting them in locating the information they want via the most effective path.

Figure 7: Daraz.com.np Navigation Menu

Slider

A slider is used to display photographs in the manner of a slideshow, with the images sliding
from right to left or vice versa. Visitors may rapidly notice the highlights and take action as a
result of this.
 Figure 8: Daraz.com.np Slider

Sidebar

A sidebar is a UI element that presents a list of options. It usually appears as a column to the left
of the main material, although it can also appear on the right side.

Figure 9: Daraz.com.np Sidebar Options

Call to action

A call to action is a section of a website that encourages users to act. It generally consists of an
eye-catching title, a phrase or paragraph outlining the benefits of doing the action, and a button
or opt-in box. It is a vital component of a website since it directs visitors to accomplish what you
eventually want them to do.
 Figure 10: Daraz.com.np Action Menu

Content

The values of a website are generally determined by the quality of its content. A website can
include several types of material. They might be text, picture, audio, or a mix of the three.

Figure 11:Daraz.com.np Product Contents

Footer

The website's footer is found at the bottom. It includes contact information, payment options,
social network icons, terms of service, privacy policies, and a logo, among other things. When
visitors reach the bottom of the page, it is an excellent area to capture their attention and guide
them deeper into your website.
Figure 12: Daraz.com.np Footer
 CONCLUSION

In general, modern businesses must continually seek to develop the next greatest thing that
consumers will want since people expect their products, services, and so on to be better, faster,
and cheaper all the time. Businesses must adapt to new sorts of customer requirements and trends
in this era of new technologies since it is critical to their success and survival. Daraz is always
evolving and becoming increasingly vital to organizations as technology advances, and it is
something that should be taken advantage of and applied.

Consumers' options have expanded exponentially since the establishment of the Daraz. In
addition, by active partnership with delivery firms and payment gateways, they are making it
easier for customers to pay and receive things faster. They are increasing their reach as the
number of internet users and online shoppers grows. People embracing the digital era will foster
the growth of internet businesses. And this is great news for e-commerce sites like Daraz Nepal.
Nonetheless, they have demonstrated their competence in the current setting and will continue to
strive for domination in the Nepal e-commerce market for many years to come.
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Global Socially-Led Creative Agency - We Are Social. (n.d.). Retrieved May 05, 2022, from
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7 eCommerce Business Challenges + Easy Ways to Solve Them. (n.d.). Retrieved May 05, 2022,
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Daraz creating change | Nepali Times. (n.d.). Retrieved May 05, 2022, from
https://www.nepalitimes.com/business/Daraz-creating-change/

The e-commerce market in Nepal is worth $25 million: Daraz Nepal. (n.d.). Retrieved May 05,
2022, from https://kathmandupost.com/money/2020/11/08/the-e-commerce-market-in-nepal-is-
worth-25-million