Project Report on “Online shopping in Nepal .

”
A project report submitted in partial fulfilment of the requirement for the award of the
BBM seventh semester in E-commerce

By

Sunita Kumari Pandey

Under the esteemed guidance of

Raju Karki Sir

Department of Bachelor in Business Management

Nepal Commerce Campus

(Affiliated to Tribhuwan University) Baneshwor, Kathmandu, Nepal

2023

Submitted by: Submitted to:

Sunita kumari pandey Raju Karki

BBM 7th semester Lecturer

 Certificate of the project
This is to certify that the project work titled “Detail report on online purchase” is the
work carried out by Sunita Kumari Pandey in partial fulfilment of the degree of
Bachelor of Business Management (BBM) 7th semester E-commerce to the Nepal
Commerce Campus, is a record of bonfire work carried out under my guidance and
supervision in the academic year 2023.
The results embodied in this project report have not been submitted to any other
University or Institute for the award of any Degree or Diploma. On the basis of the
declaration made by them, I recommend this project report for evaluation.

…………………………. ….………………………….

Certified by Head of Department

Raju Karki BBM (NCC)

 Acknowledgement
This project was prescribed in order to develop our knowledge regarding e-commerce
sites. However no research or project work is the only work of its researchers. The
project would not have been possible without the kind help and support of various
people. I would like to extend our sincere thanks to all of them.

Firstly, I would like to express my special thanks to our lecturer Mr. Raju Karki sir, who
gave me an opportunity to know about one of the prominent e-commerce sites of Nepal
which is Daraz. I have put all my possible effort in making this report effective however
there can be some mistakes which I would like to apologize for and look forward for
any comments or criticism for future improvements.
 Abstract
E-commerce is the commercial transactions conducted electronically on the internet
using various electronic devices like desktop, laptop, smart phone, tablet, etc. E-
commerce is a modern business methodology that addresses the needs of organizations,
merchants and consumers to cut or reduce costs while improving the quality of goods
and services increasing the speed of service delivery. In Nepal, e-commerce is a
growing industry. For most of the people in Nepal, Amazon, Alibaba, Flipkart are not
alien concept. We have many e-commerce venture such as Daraz.com. Sastodeal.com,
Hamrobazzar.com etc.

.
This report is dedicated to analysing and understanding this significant evolution in the
commerce sector. One of the main aspects of e-commerce namely the online shopping
will be explored in this report. This report presents a detailed examination of the online
ordering process in the field of e-commerce, with a focus on the purchases made online.
Using the platform of online shopping, aspects such as product selection, ordering
process, payment processes, communication, shipping, and customer support are
examined in detail. The evaluation includes an assessment of the platform's compliance
with modern e-commerce trends and practices. This project not only serves as a report
on the online shopping experience, but also provides insights into the ever-changing
landscape of digital commerce.

This project is based on the online site Daraz with its information as well as pros and
cons. This project is also a short description on how a product is ordered and delivered
through the site. It helps to make the customer satisfaction a lot easier by providing
variety of products through different means. It can be accessed through websites or
through portable devices using its app. It follows B2B and B2C Business model.

Overall, it is one of the thriving sites in Nepal contributing in the field of e-commerce.
 Table of contents
Certificate of the project ................................................................................................................. i
Acknowledgement ..........................................................................................................................ii
Abstract ......................................................................................................................................... iii
Chapter -1 Introduction ..................................................................................................................1
1.1 Introduction of the project work ...........................................................................................1
1.2 Objectives of the Study ........................................................................................................ 1
1.3 Scope and Significance of the Study ....................................................................................2
1.4 Methodology of the Study ....................................................................................................2
1.5 Limitations of the Study ....................................................................................................... 3
Chapter 2 : Review of the website ................................................................................................. 4
2.1 Introduction of the website ...................................................................................................4
2.2 Features of Daraz ..................................................................................................................5
2.3 Business Model .................................................................................................................... 6
a) B2B Business Model ..............................................................................................................6
b) B2C Business Model ..............................................................................................................6
2.4 Network security and firewall .............................................................................................. 7
Chapter 3 : Analysis of Daraz ..........................................................................................................8
3.1 Website Analysis ..................................................................................................................8
Chapter 4: Online Purchasing .......................................................................................................10
4.1 Order Placement .................................................................................................................10
4.2 SWOT Analysis of Daraz. ..................................................................................................15
Chapter 5: Conclusions and Suggestions ......................................................................................17
5.1 Conclusion: .........................................................................................................................17
5.2 Suggestion .......................................................................................................................... 18
5.3 Bibliography .......................................................................................................................19
 Chapter -1 Introduction
1.1 Introduction of the project work
E-commerce is a modern business methodology that addresses the needs of
organizations, merchants and consumers to cut or reduce costs while improving the
quality of goods and services increasing the speed of service delivery.In an era of
globalization and a society that is technologically driven, E-Commerce has seen a rapid
growth in recent years. In context of Nepal, E-Commerce has witnessed a swift rise
since its introduction back in the late 1990’s. E-Commerce has finally emerged as one
of the most successful business ventures for aspiring entrepreneurs. In the late 1990s’
Nepalese residing abroad were the main users of this digital version of performing
commercial transactions via internet, back in the days NRN (Non-Residential Nepalese)
used to place an order online for Goats for their family back in Nepal, after making the
payment abroad the Goats used to be delivered in Nepal. We can clearly see the
transition of E-Commerce in Nepal; from purchasing goats online mostly by NRN’s to
ordering almost everything today by the general crowd.E-commerce is a modern
business methodology that addresses the needs of organizations, merchants and
consumers to cut or reduce costs while improving the quality of goods and services
increasing the speed of service delivery.

This report presents the analysis of the ecommerce in Nepal with reference to Daraz.
Online buying and selling is a form of ecommerce where consumers can buy goods and
services from a seller over the Internet by using the web browser.Daraz is one of the
ecommerce site for online buying and selling. E-commerce platform helps a business to
do boundless business, reduce operational cost, reduce inventories and maximize
customization. Hence,companies believe that e-commerce can increase their efficiency
in finding and interacting with customer, in communicating with trade partner and in
developing new products in the markets. This reports helps to explore about the e-
commerce and its significance.

1.2 Objectives of the Study

The major objective of the study is to explore about Daraz. The specific objectives of
the study are as follows:

i. To know the important of E-commerce in today’s environment.

ii. To highlight the online services provided by Daraz.

iii. To explore out the online security mechanism of Daraz.

iv. To find out the payment mechanism of Daraz.

v. To make reader aware of the role played by Daraz.

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vi. To understand about technical working of Daraz

vii. To know about the information and work flow management of Daraz.

1.3 Scope and Significance of the Study

Scope of the project work means the range to which this report can be taken as reference
or how much it can be applied. This project work may be helpful to those readers who
want to know about the today’s ecommerce environment in business and also to those
who want to explore about the Daraz. Daraz is one of the site where one can buy goods.
Every business today is using electronic mechanism because of the huge amount of
benefit they can get by adopting it. According to them the benefits include convenience
to customer, speed and quality of services, reduction in total overhead cost, etc. This
study helps to get knowledge about the online business, the services they provide, the
security mechanism and payment system they use.

1.4 Methodology of the Study

Methodology is a system of methods used in a particular area of study or activity. This
research is based on two methodology of data collection they are primary and secondary
data. Primary research is the process of gathering data directly from original sources as
opposed to collecting information from research that others have done. Information can
be obtained by observation, by mail and telephone surveys, or by face-to-face interviews.

The secondary data can be both qualitative and quantitative. The qualitative data can be
obtained through newspapers, diaries, interviews, transcripts, etc., while the quantitative
data can be obtained through a survey, financial statements and statistics.

In this report, we chatted through website which was taken as techniques to collect data
for our research. Besides primary data, websites, reports related to Daraz were taken as a
data source for our research as a secondary data source.

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1.5 Limitations of the Study
This report consists of some limitations due to some reasons. Despite the full
concentration on subject matter and wider scope of learning this research could have
some of the limitation on own. This study may not help to reader who want the detailed
information about Daraz.

The following are the major limitation of the study:

 Since the major report is based on secondary data the findings are based on the
information collected.

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

 The study has been prepared under the constraint of the limited time.

 Findings might not be universally applicable due to variations in user

behaviour ,market dynamics or regional differences.

 Data collection might not represent the entire user base , leading to skewed
conclusions.

Thus, detail and analytical study could not be conducted.

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 Chapter 2 : Review of the website
2.1 Introduction of the website

Daraz is one of the prominent online market place and Logistics Company. Daraz was
founded in 2012 by a German venture capital company, Rocket Internet offering online
shopping experience. Currently, Daraz operates in South Asian markets like Pakistan,
Bangladesh, Nepal, Sri Lanka, and Myanmar offering more than 2.5 millions of
versatile group of product ranging from electronics product to household, beauty,
fashion, sports, groceries and many more. The original idea of this e-commerce is to
facilitates both selling and buying in a single platform. It is available as website as well
as mobile app available for both android and iOS. Online shopping has never been
easier. Daraz is the best online store in Nepal offering more than 2 million products at
affordable prices. As the online shopping scene in Nepal is expanding every year, online
shopping in Kathmandu, Bhaktapur, Lalitpur, Pokhara and other major cities is also
gaining momentum. Daraz is among the best online shopping websites in Nepal that
promises fast, reliable and convenient delivery of products to your doorstep. Daraz is a
trusted online store in Nepal that aims to provide a hassle-free shopping experience to
people of Nepal.

Daraz's mission is to expand all over Nepal and gain the highest market share in the e-
commerce sector, make all the necessities available to customers and find the best
sellers across the country to showcase their products on Daraz's website.
For DARAZ Nepal, the vision is- "To be number one in the market by offering the
highest quality services to all dealers and customers".

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2.2 Features of Daraz

a. 24X7 customer service: Daraz provides 24 hours and 7 days customer service.
Customer may contact Daraz any time and can ask for their product details and
other things.

b. Digital cart: Daraz provides a service for digital cart. In this a person can do
multiple shopping, means if a person goes for shopping and he purchases MP3
player then he decided to purchase Television, then something else, so all this items
will get stored in one cart, and at last all the total payment can be made.

c. Diversification of products: Daraz started their business and diversified

themselves into different categories like cameras, computers, mobiles, gaming,
music. TV, home and kitchen appliances, watches and etc. This strategy of
diversification of products helps them in growing their business.

d. Safe and secure shopping: Payment can be made through COD(cash on delivery)
or online either through debit card or credit card and bank deposit.

e. Payment Options: Consumers can pay through e-sewa, bank deposit and cards
through HBL option. The payment made through e-sewa costs extra charge 2% as
the payment gateway charge. People never feel secure while making payment
online, but Daraz ensures that making payment online on their website is
completely safe and secure. Shopping at Daraz is 100% safe. Daraz uses the latest
encryption technology to protect credit card information. It encrypts customer's
credit card number so that it can be read as the informations travels over the internet.

f. Tracking of Home delivery: Main feature of Daraz is providing home delivery.

Once the order is placed customer gets an order confirmation code and by that code
customer can able to know the current status his her product

g. E-gift voucher: Daraz provides e-gift vouchers to the customers. Sometimes

with the purchase of products they also give some e-gift vouchers

h. Discount in products: The main feature that Daraz provides is that they provide
discount almost in every goods. Daraz provide various sales and discount offer to
customer.

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2.3 Business Model

Without a proper framework or business model, a business cannot succeed in their

future. Daraz works on two business models. They are:

a) B2B Business Model

It stands for business to business model. It exchanges product and services
electronically between businesses. Daraz is a business with different other business that
sell product here. The website receives order from customers and then it is processed to
the business organization. Then it is supplied to the customer. Daraz provides the
platform for showcase of business intermediary’s products and services online.

b) B2C Business Model

B2C stands for Business to Customer model. It refers to selling the product and services
directly between business and customers through internet. In the B2C model, a
consumer goes to the website, selects a catalogue, orders the catalogue, and it is sent to
the business organization. After receiving the order, goods are dispatched to the
customer.

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 2.4 Network security and firewall
.
Daraz uses a sophisticated object-orientated programming language. Their
administration panel is inaccessible to attackers because it's only available on their
internal network and completely removed from our public facing servers. Additionally,
it has a secondary authentication that authenticates users with our internal Windows
network. They use a secure connection for online checkout. They use strong SSL
[Secure Sockets Layer] authentication for Web and data protection. SSL certificates are
a must for transactions and to validate the credit cards they use a payment gateway that
uses live address verification services right on one's checkout. They require strong
passwords. While it is the responsibility of the retailer to keep customer information
safe on the back-end, they can help customers help themselves by requiring a minimum
number of characters and the use of symbols or numbers. Longer, more complex logins
will make it harder for criminals to breach the site from the front-end. They layer our
security. One of the best ways to keep our business safe from cybercriminals is layering
the security. They start with firewalls, an essential aspect in stopping attackers before
they can breach your network and gain access to our critical information. Next they add
extra layers of security to the website and applications such as contact forms, login
boxes and search queries. These measures will ensure that our ecommerce environment
is protected from application-level attacks like SQL (Structured Query Language)
injections and cross-site scripting (XSS)".

They provide security training to employees. Employees need to know they should
never email or text sensitive data or reveal private customer information in chat sessions
as none of these communication methods is secure. Employees also need to be educated
on the laws and policies that affect customer data and be trained on the actions required
to keep it safe. Finally they use strict written protocols and policies to reinforce and
encourage employees to adhere to mandated security practice.

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 Chapter 3 : Analysis of Daraz
3.1 Website Analysis
For analysis of the e-commerce website Daraz factors like: website design,site
convenience, Meta title Meta descriptions, SEO graphics, reviews and ratings etc are
studied which are listed below.

3.1.1 Website Design

The website design of this e-commerce site is neat, easy to use and looks genuine. The
site design allows you to see right away what they are offering and the many different
varieties of items. From the home page you can instantly use the search bar find the
product that you want. The website itself is very simple when it comes to the colours
and themes. The backgrounds of the pages are white, and usually have black lettering.
When you search for the product you want, it will come up in full colour and show you
what it actually looks like. It is very simple but extremely easy on the eye and draws
you to look at it.

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3.1.2 Site convenience

Daraz's website is convenient to use and everything is systematically organized for

consumer friendly smooth operation. Any customer browsing through the website can
easily use and understand the site. It has all the products systematically organized
according to their category, Customers are able to find their products very easily.

3.1.3 Meta title:

The meta title of a web page gives searchers and search engines a brief description of
the contents on the page. It serves as both an attention grabber and a summary of what
the article is about. In Daraz they do not have proper meta title and that is why they do
not have any organic search position in Google.

3.1.4 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.

3.1.5 SEO:

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

3.1.6 Graphics:

It is important for any e-commerce website to have a high quality graphics and picture
quality of products. Daraz has the high standard graphics and has the zoom feature on
the products so, consumer can view them as a real. Consumers get what they see on the
site without quality compromisation.

3.1.7 Reviewing and ratings

Rating and reviews from the customers are of great importance to the effective
operation and minimizing the mistakes previously occurred. Daraz has the feature of
rating and review of products that has been purchased by customers

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 Chapter 4: Online Purchasing
Online purchasing has become increasingly popular due to its convenience and
accessibility. It allows people to shop for a wide range of products and services from the
comfort of their homes, any time and anywhere with an internet connection. From
everyday items to specialized goods, online platforms offer a vast array of choices, often
at competitive prices. There are many e-commerce websites operating right now. But
here only Daraz is mentioned . As Daraz features a wide range of products, from
groceries, clothing, accessories, cosmetics, gadgets that customer may be looking for.

4.1 Order Placement

Daraz is an instant solution for purchasing varieties of goods under a same website. To
purchase something, one must either sign up or login with their g-mail id or facebook id.
It’s easy to login whereas the following details need to be filled to have an account in
Daraz.

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After logins now we can search for the products of our choice. For me I was looking for
an ear-pod cover. After scrolling and looking at lots of option I liked one. Next step is to
click the picture and click buy now

Click "ADD TO CART" if you like to order more than one items, or "BUY NOW" if
you just want to order this product.

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I only needed one item so I clicked buy now. After this we are required to add our
address and few other details . So that the delivery can be made easily.

12
After adding the address and other details next step is to place the order and for this we
need to make payment.There are different ways of payment. We can see different
options in the following picture

I made payment through e-sewa for my purchase.

13
After ordering the item of my choice, I was given the entire information of the products
from being processed and ready to ship from the seller. A tracking number was attached
to the product which is used to track the entire shipping process. The arrival date was
informed to be 1-2 days which is impressive.This function of Daraz gives the customers
a reliable way to track their products and make sure that they are being shipped in time.

They kept me updating about the product.Even at 1am I was receiving notification about
my purchase. And the next day my product was delivered to me. I thought it will take
2days at least but I received it within 24 hours.

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 4.2 SWOT Analysis of Daraz.
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 is shown below:

STRENGTH

 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.

 Facilitates consumers with easy and instant buying.

 Easy to correlate between marketing and sales level with cheap

marketing expenses.

 New market and increasing trend provides the wider opportunity for
the market.

 They provide goods in relatively ‘sasto’ price as its name suggests.

 The ordered and delivery process has the tracking system so there is
security on goods of deliver

WEAKNESS

.
 Daraz 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.

 Maintenance cost due to constantly evolving environment.

 Security and privacy issues.

 Negative customer feedback can spread easily damaging the name of

product.

 Competition increases because online marketing helps consumers to easily.

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  Compare between different products.

 Requires constant attention as it needs to be updated regularly.

 Requires broad knowledge of web and its applications.

OPPORTUNITIES

 People are more interested to do side business. Daraz is helping them to 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.

 Integration with back end system can improve transaction turn around
and increase productivity.

 Automated processing and systems can keep customer well informed.

 Globalization.

THREATS

 Since there are lots of online shops now days, it can be threat from 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.

 Lack of knowledge of web technologies can lead to problems.

 Will be very difficult to compete with established firms.

 Imitation can be difficult to stop.

 Improper databases results lack of evidence to validate its value.

 Technological changes versus manpower.

 Fragmented market and involvement of lots of small players.

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 Chapter 5: Conclusions and Suggestions
5.1 Conclusion:

E-commerce has been an essential platform for the commercial organizations to flourish
and mass advertise their products in an effective way. Since, online shopping has been
increasing day by day, this study aims to find out the growing popularity of one of the
online marketing centre and how they have been managing the network security issues.
After the completion of this project,we come to know that Daraz is one of the best
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 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 best
shopping site of Nepal.Likewise, with the help of this project, we can analyse the
current situation of online shopping in Nepal by relating Daraz to this scenario. It is
found that although Daraz is gaining popularity among people and has numbers of fan
followings across the country, it still has to compete with renowned organizations. The
payment and delivery mechanism is dependent on the users as it doesn’t interfere but
there are some security issues which should concerned the users. Hence the site is
number one Business to consumer ecommerce site and helping buyers and sellers to
connect and communicate to perform commercial activities, it should focus on the
limitation and provide better service to the users to retain its position.

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5.2 Suggestion
 Better if they make advertisement of their sites to also include 35-55 age
group as their major customer who are now at minor.

 They are focusing on the standardization of their website based on group-in

and e-commerce which should be implemented soon.

 Quick update of price change and products should be inherited.

 Banking transactions should be extended in other banks .

 Delivery services should be made as quick as possible so as to achieve

customer satisfaction.

 Vulnerabilities like hacking, sniffing, Dos attacks are increasing as the

internet users are increasing. These malicious codes should be taken care
of.

 Website should be made compatible to all browsers and operating system

in order to reach to customers using numerous browsers.

 They now must expand their business countrywide and abroad. Here,
abroad market is for Nepalese residing abroad who wants to gift their near
and dear ones in Nepal.

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5.3 Bibliography

 https://www.studocu.com/row/document/tribhuvan-vishwavidalaya/bachelors-of-
business-administration/ecommerce-daraz-final-report/17871310

 https://darazsellerhelp.blogspot.com/2021/01/pros-and-cons-of-selling-on-
daraz.html?m=1

 https://www.nepaldatabase.com/evolution-of-e-commerce-and-daraz-in-nepal

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