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Ecommerce Daraz Final Report

Bachelors of Business Administration (Tribhuvan Vishwavidalaya)

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TRIBHUVAN UNIVERSITY
INSTITUTE OF MANAGEMENT STUDIES

MAITHIGHAR, KATHMANDU

A REPORT
ON
ONLINE SHOPPING IN NEPAL:
DARAZ.COM.NP

Submitted By:
Sareena Bista (19844/17)
Shishir Dhakal (19845/17)
Shital Sapkota (19846/17)
Sushovit Karki (19847/17)
Utsav Keshari Shah (19849/17)

Submitted To:
Mr. Roshan Bhusal

(In partial fulfillment of the requirements for the Course E-Commerce 2019) March, 2019

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ACKNOWLEDGEMENT

This report entitled ‘Website Review of the Daraz.com.np ’ has been an output of dedication and efforts for the
partial fulfillment of the requirements of internal evaluation for the degree Bachelor of Business
Administration. However, it wouldn’t have been possible without the kind support and help of many
individuals. Therefore we would like to acknowledge with gratitude to all of them.
We wish to express our deep sense gratitude towards faculty of E-commerce Mr. Roshan Bhusal for giving me
the responsibility to prepare this report along with his guidance, valuable advice, support, and inspiration. Our
thanks also go to our colleagues and well-wishers for their valuable comments, understandings, and
encouragement when it was required.

We’ve put in our all possible strength to make this report error free and as good as it can be within the limited
time frame, 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.

We express gratitude to other faculty members of IMS college, Thapathali for their intellectual support
throughout the course of this report.

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DECLARATION

We the Research team declare that the work presented in the form of report entitled “Online shopping in Nepal:
Daraz.com.np ” submitted to department of IT , IMS College. This is our original work done in the form of partial
fulfillment of requirement of BBA program e commerce course of Sixth semester under the supervision of Mr.
Roshan Bhusal, Institute Of Management Studies.

Date:

Research Team

BBA program, 6th semester

IMS College

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RECOMMENDATION

This is to certify that Sareena Bista, Shishir Dhakal, Sushovit Karki, Shital Sapkota and Utsav Keshari Shah has
completed this dissertation work entitled “Report on online shopping in Nepal: Daraz.com.np” as a partial
fulfillment of requirement for the course E-commerce under our supervision. The report has been presented in
the prescribed format of department of E commerce. This report is forwarded for evaluation.

.........................
Mr.Roshan Bhusal
(Department of Ecommerce )
IMS College
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Approval SHEET

This is to certify that the report entitled ‘Website Review of the Daraz.com.np’ is an academic work done by
Sareena Bista, Shishir Dhakal, Shital Sapkota, Sushovit Karki and Utsav Keshari Shah, submitted for the partial
fulfillment of the requirements of internal evaluation for the degree of Bachelor of Business Administration at
IMS college, affiliated to Faculty of Management, Tribhuvan University under the guidance and supervision of
course instructor and College Management. To the best of our knowledge, the information presented by them in
the project report has not been submitted earlier
……………………………… ……………………………… Roshan Bhusal

BBA Program Coordinator Faculty of Ecommerce

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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.com, short history of Daraz.com, 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.com 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.com
personnel and other secondary data and references.

In a whole, this report does a SWOT analysis of Daraz.com.np. Finally, the report highlighted some of
the important aspects of online shopping in Nepal.

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LISTS OF FIGURES

Figure 1: Sample picture of Daraz .com..........................................................................................6 Figure 2: Items

available in Daraz...............................................................................................10 Figure 3: B2B
model......................................................................................................................12 Figure 4: B2C
model.....................................................................................................................13 Figure 5: Web
design....................................................................................................................15 Figure 6: Category and
convenience.............................................................................................16 Figure 7: Daraz
Awareness...........................................................................................................20 Figure 8: Reasons of buying from
Daraz.......................................................................................21 Figure 9: Products typically bought in
Daraz...............................................................................21 Figure 10: Daraz fan overview in
Nepal.......................................................................................22

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Contents

CHAPTER 1....................................................................................................................................1

INTRODUCTION...........................................................................................................................1 1.1 Background

of study..............................................................................................................1 1.1.1 E-commerce in

Nepal.....................................................................................................2 1.1.2 Types of

E-commerce.....................................................................................................3 1.2 Introduction to group

members.............................................................................................4 1.3 Research

Objectives...............................................................................................................4 1.4 Introduction to online

shopping.............................................................................................5 1.5 Methodology of

study............................................................................................................5 1.6 Limitations of

study...............................................................................................................6 CHAPTER

2....................................................................................................................................7 Daraz an online ecommerce

shopping.............................................................................................7 2.1 Features of

Daraz...................................................................................................................8 2.2 Items available in

Daraz.com..............................................................................................10 2.3 Buying and selling

process..................................................................................................11 2.3.1 The buying

process.......................................................................................................11 2.3.2 The selling

process........................................................................................................12 2.4 Business

Model....................................................................................................................13 2.4.1 B2B business

model:....................................................................................................13 2.4.2 B2C business

model:....................................................................................................14 2.5 Network Security and

Firewall............................................................................................15
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CHAPTER 3..................................................................................................................................16 ANALYSIS OF

DARAZ.COM.....................................................................................................16 3.1 Website

Analysis..................................................................................................................16 3.1.1 Website

Design.............................................................................................................16 3.1.2 Site

convenience...........................................................................................................17 3.1.3 Meta

title.......................................................................................................................17 3.1.4 Meta

description...........................................................................................................17 3.1.5

SEO...............................................................................................................................18 3.1.6

Graphics........................................................................................................................18 3.1.7 Reviewing and

ratings..................................................................................................18 3.8 SWOT Analysis of

Daraz.com.............................................................................................19 3.9 Presentation and analysis of

data.........................................................................................21 3.9.1Primary data presentation and

analysis..........................................................................21 3.9.2 Secondary Data Presentation and

Analysis...................................................................23 CONCLUSION AND

SUGGESTIONS........................................................................................24 4.1

conclusion............................................................................................................................24 4.2

Suggestions..........................................................................................................................25

REFERENCES..............................................................................................................................26
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CHAPTER 1

INTRODUCTION

1.1 Background of study

The secondary report has been used for the preparation of this report. Internet surfing, consulting library, and
literature review were the sources of the data. Daraz is one of the prominent rising stars of online retail shops
in Nepal. Daraz is an online marketplace and logistics company which operates in markets of South Asia and
Southeast Asia. It was founded in 2012 as an online fashion e-commerce marketplace in Pakistan by Muneeb
Maayr (Founder) & Farees Shah (Co Founder) at the based venture builder, Rocket Internet. Daraz Group
operates e commerce platforms and logistics service in Bangladesh, Myanmar, Nepal, Pakistan and Sri Lanka.
Bjarke Mikkelsen is the current CEO of Daraz. In May 2018, Daraz Group was acquired by the Chinese e-
commerce company Alibaba Group from Rocket Internet

Daraz is now a renowned and a well-established company making hundreds of deals every day. Daraz has been able
to provide goods in a relatively cheaper rate compared to the market price by compressing retailer’s margin by
tapping higher levels of wholesalers and traders. 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, possible threats and security
concern, applications of online shopping, and ethical issues regarding this subject matter.
 The business model of Daraz.com, infrastructure employed for smooth operation, security mechanism it adapts
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.

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1.1.1 E-commerce in Nepal

Ecommerce is still immature in Nepal. Even though the website like Kaymu.com.np,
Meroshopping.com etc are doing well, they still lack the public exposure. Buying something
from Internet is myth in Nepal. People still afraid to do it. Before a decade e-commerce was
setup as sending gifts and money online and other websites promoting “Send Gifts to Nepal”
which had merely a concept of e-commerce It was target to Nepali residing in USA, UK,
Australia and Europe. There was no effect of that business to support the e-commerce concept in
Nepal. Gradually the business was promoted by other companies who saw there was a marginal
profit. Along with the rise of IT, and business concept many online stores were launched but they
didn’t have the actual process of buying and selling online. They were the virtual stores with the
best example which gave a concept of selling and buying online but not paying. Many companies
have started the trend of e-commerce in Nepal decade ago, but the challenges are still the same.
The actual sales have not been able to start due to lack of knowledge, awareness and online
payment systems. Selling globally and inside the country is the same in years. Payment
Gateways are being developed but they have their limitation due to legal and security issues. The
lack of proper knowledge and awareness among the generation is the major hurdle in e
commerce. In past recent years due to education and reach to internet among the many people in
Nepal has brightened the future of e-commerce The interest of students in the field of IT, the
growth of IT companies has helped a lot in the awareness and interest in young generation for
internet and IT, has directly created more opportunities for the growth of e-commerce in Nepal.
Many online portals and shopping portals are launched now. Leaving the measurement of
success behind, they are now on the top list. Peeping into the future of e-commerce, launch of
few large online shopping portals was thought as milestone, everyone thought there will be a
turnaround in the e-commerce industry in Nepal. Now having dozens of virtual Nepali stores in
the web, they still have the same problem of payment and a belief of people, they still have a
level of trust to build among the visitors. Electronic commerce draws on technologies such as
mobile commerce, electronic funds transfer, supply chain management, Internet marketing,
online transaction processing, electronic data interchange (EDI), inventory management systems,
and automated data collection systems. Ecommerce is conducted using a variety of applications,
such as email, online catalogs and shopping carts, EDI, File Transfer Protocol, and web services.
Modern electronic commerce typically uses the World Wide Web for at least one part of the

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transaction’s life cycle although it may also use other technologies such as e-mail. This
includes business-to-business activities and outreach such as using email for unsolicited ads
(usually viewed as spam) to consumers and other business prospects, as well as to send out e-
newsletters to subscribers. More companies now try to entice consumers directly online, using
tools such as digital coupons, social media marketing and targeted advertisements. Therefore,
e-commerce makes the work faster, easier as well as cheaper for the business to communicate
with their suppliers and their customers. So, most of the business uses e-commerce to perform
their activities.

1.1.2 Types of E-commerce

The types of E-commerce are as follows:
1. Business to business (B2B):
Business to business, B2B, e-commerce transactions happen between two companies. B2B
activity is not new, but the internet has changed how everything is transacted. An example of
B2B is a company that outsources its bookkeeping activities to another company. Another
example includes a business that buys its products from a wholesale company. B2B
transactions are usually handled with lines of credit and companies often times have long-
lasting relationships with one another. The seller has responsibility of determining the buyer's
creditworthiness. Example: Unilever

2. Business to consumer (B2C)

Business to consumer, B2C, transactions deal with customers purchasing products and services
from companies through the internet. Online shopping has increased significantly in recent
years. Many companies take extreme security measures to protect the sensitive financial
information of consumers. B2C e-commerce transactions are not strictly bound to retail
shopping. Many customers purchase health insurance, auto insurance and similar products
online. One reason for the popularity of B2C e-commerce is consumers enjoy the convenience of
purchasing products and services online. Example: Clear trip

3. Consumer to consumer (C2C)

Consumer to Consumer, C2C, e-commerce activity is more recent, and usually requires a

business to play the middleman. Companies like eBay and Amazon have made C2C more

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popular. The way it works is companies that have products to sell list them through a third-party
site. Consumers looking to purchase products visit the site and search the available products. The
consumer purchases the product and the seller is responsible for delivering the product. The
business that plays the middleman usually requires a transaction fee from either the seller or
buyer.. Example: OLX, Quikr, Daraz,101monkey…etc.

4. Consumer to business (C2B)

Consumer to business, B2C, transactions occur when a company places a job online and
businesses bid on the project. For example, a consumer that needs a website designed will place
the details of the job on a bidding site along with his budget. Companies with experience in web
design will submit bid proposals to the consumer. The consumer chooses a company, submits
the agreed upon payment to the business and waits for the delivery of the website. Bidding
companies act as the middleman verifying that payment and service are delivered.

1.2 Introduction to group members

In partial fulfillment of the requirements for the degree of Bachelor of Business Administration
at Faculty of Management, Tribhuvan University this report entitled as “Online shopping in
Nepal; Daraz.com” is prepared on joint effort of Five group members of 6th semester. The
group members are:
I. Sareena Bista
II. Shishir Dhakal
III. Sushovit Karki
IV. Shital Sapkota
V. Utsav Keshari Shah

1.3 Research Objectives

The research is primarily based on studying and evaluating the mechanism of and online
procedures occurred at Daraz.com. So we have following objectives of our research study:

i. To study online services and online security mechanism of Daraz.com. ii. To analyze online

market segments used by the website.

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iii. To evaluate the effectiveness of online shopping in Nepal.

iv. To analyze online procedures and mechanism to do transaction in Daraz.com. 1.4

Introduction to online shopping

Online shopping is a form of electronic commerce which

allows consumers to directly buy goods or services from a
seller over the Internet using a web browser. Consumers find a
product of interest by visiting the website of the retailer
directly or by searching among alternative vendors using
a shopping search engine, which displays the same
product's availability and pricing at different e-retailers. As
of 2018, customers can shop online using a range of
different computers and devices, including desktop
computers, laptops, tablet computers and Smartphone. 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. Daraz.com has become
able to stand itself as competitive and lucrative site in online shopping. “Daraz.com: Be
Genuine." As the slogan suggests, it feature genuine brands from all across the world, including
genuine offers, and genuine experiences; everything you want as a customer, all in one place.
Daraz has a unique feature of track your order though which a customer can track their
purchased goods on the way to delivery.

1.5 Methodology of study

This research is based on primary as well as secondary source of data collection. Direct
observation, interview, websites/internet were taken as techniques to collect data for our research.
To collect reliable and factual data we also used various instruments such as voice recorder, cell
phones, camera, computers, etc. in our data collection procedure. Besides primary

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data, articles and websites related to Daraz.com were also taken as a data source for our research
as a secondary data source.

1.6 Limitations of study

This report is a partial requirement of practical exam of E-commerce of BBA sixth semester
conducted by Tribhuvan University. The report has been prepared and submitted within a
prescribed limited time. Although we did our best to make a comprehensive study of this topic,
there’re still some limitations. They are:
 In depth analysis could not be carried out due to limited time.
 Since the report is based on secondary data, the findings are based on information collected.
 Personnel we contacted through telephone were quite hesitant to provide us handful of
information. So, primarily collected data may not be 100 percent relevant.  This report
is conducted under the prescribed format by T.U. for the purpose of practical exam report
of Bachelor degree.
 The internet and publications lacked enough information on the subject of e-commerce
activities in Nepal.
 Interpretation and conclusion were drawn within limitations of individual’s knowledge and
judgment abilities.
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CHAPTER 2

Daraz an online ecommerce shopping

Daraz is now a renowned and a well-established company making hundreds of deals every day.
The company was started almost 9 years ago with the aim of switching offline market to online
and providing best deals. Daraz has been able to provide goods in a relatively cheaper rate
compared to the market price by compressing retailer’s margin by tapping higher levels of
wholesalers and traders. The type of business done by Daraz is B2B, B2C. Daraz is a pioneer
company. Daraz allows the customer to make selection of the best product in the most
affordable, cheap and reasonable price. With the features like Info, photo, questions and reviews,
a customer can make an informed online buying decision. The item could hardly return it and
request that Daraz exchange it with another size, at the same cost. More than 15,000 are the
average no. of visitors per day and the average no. of customer per day is more than 600
transactions every day. The web presence of Daraz has played a great role in the marketing
strategy of “word of mouth “. The web presence of the site was through the following ways:
Website: www.Daraz.com.np

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Figure 1: Sample picture of Daraz .com.np

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On Google, the ranking of the site is improved on search to list out the website and easy access.
Improving ratings with search engine has promoted the name and popularity among people.

There are internet forums where people post their feedback on Daraz. The presence of Daraz in
such forums and social media is equally encouraging. Having a page in Facebook and having fan
following in Twitter are all means by which the company can advertise about its new arrivals
and offers. The company has diversified product sales into many areas that the company wants
to advertise and reach out to the world.

2.1 Features of Daraz

a) 24X7 customer service

Daraz provides 24 hours and 7 days customer service. Customer may contact Daraz anytime 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, T.V, 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 or online either through debit card or credit card and bank
deposit.

e) Payment Options

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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.com is 100% safe. Daraz uses the latest
encryption technology to protect credit card information. It encrypts customer’s credit card
number so that it cannot be read as the information 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 of
his/her product.

g) E-gift voucher:-

Daraz provides e-gift vouchers also 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 .

i) Replacement guarantees:-

The product purchased can be replaced within 30 days.

j) Cash on delivery:-

Pre-payment is 100% safe and easy. However, Daraz also offers you the possibility to pay
through Cash On Delivery (COD). With COD, you can pay in cash to the delivery agent upon
receipt of your order.

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Note: Some Items are only available for pre-payment method

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2.2 Items 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:
Bags and
Wallets
Jewellery Dog Food
MEN'S
FASHION
Beauty care Dog Accessories
Accessories Cat Food
Clothing Women's
Grooming
Cat Accessories
Foot ware
Accessories KIDS Gifts
Bags and and
Wallets Kid's Access
Men's
Accessories ories
Gromming
Baby care
Footware for
Msical
Kids instrunments
Toys Bath and Body
Beauty Tools
Fragrances
Hair Care
Makeup
PET SUPPLIES
WOMEN
FASHION HEALTH AND
Clothing BEAUTY
Foot Ware ACTIVITIES
Sports equipments
Men's Care
Adventure sports
Skin Care
Food
Supplements
 Medical
Supplies

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ELECTRONI CS

Mobiles
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HOME &
LIVING

Home
AUTOMOTIVE AND
MOTORBIKE Body and
Mobiles & Daraz 2.3 Buying and
Tablets
Audio video
Computer
Accessories
Cameras
Home
Appliances Figure 2: Items available inselling process
Alarm and
Security
systems
Printer
Electronic
Accessories
Appliances Home Decor
Furniture
Kitchen & Dining
Gardening
Frames Accessories Auto Care Gears
Motorcycle Gloves Auto Parts
Rider's Helmet

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:

2.3.1 The buying process

The first step in buying process in Daraz is to access Daraz’s website and log into your account.
The website then changes based on your previous searches on Daraz and products purchased.
Thus, nearly everyone’s Daraz experience is unique with the personalized layout. Once buyer
finds the product s/he wants to purchase, s/he places an order by clicking buy now.

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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
 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.

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.

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2.4 Business Model
Daraz involves two business models. They are B2B and B2C.

2.4.1 B2B business model:

This model can be defined as doing business electronically or business that is conducted over the
internet. It is the most common business model associated with the buying and selling product or
services between or among the businesses through the internet. While transacting through Daraz
both the parties can be business parties where one party pays to another and vice- versa. Hence,
it is called B2B transaction. Daraz provides the platform for showcase of business intermediary’s
products and services online.

Figure 3: B2B model

Following are the architectural models in B2B e-commerce:

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.

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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 B2C business model:

Here, businesses and consumers interact electronically or digitally in some ways. B2C covers those
e-commerce websites and transactions through which organizations sell goods and services to
consumers over the internet. In a typical B2C model, the flow of information between business and
consumers is through the medium of internet. The same principle is adopted by Daraz. Consumers
directly ordered the products through online and Daraz delivers the products.

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. 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.
 Figure 4:
B2C model
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2.5 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.COM

3.1 Website Analysis

For analysis of the e-commerce website Daraz.com factors like: website design, site
convenience, Meta title, Meta description, SEO, graphics, review 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 colors 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 color 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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Figure 5: Web design

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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.

Figure 6:
Category and convenience
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3.1.3 Meta title

The meta title of a webpage 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.com 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.com.

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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3.8 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:
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 delivery.
 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.  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.

OPPORTUNIT  People are more interested to do side business. Daraz is helping them do
IE S 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.
 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 form
Daraz.com
 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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3.9 Presentation and analysis of data

3.9.1Primary data presentation and analysis

Awareness regarding Daraz

Unaaware; 10.53%

Figure 7: Daraz Awareness

Aware; 89.47%
Primary data is data that is collected by a researcher from first-hand sources, using methods like
surveys, interviews, or experiments. It is collected with the research project in mind, directly
from primary sources. The primary data and information are collected by questionnaire method
from college students studying in different colleges. For primary data collection, 35 respondents
were taken as sample using the convenience sampling method.

Figure shows that 31 (90%) of people in the survey are aware about the site and 4 (10%) of
people are unaware about this ecommerce site.

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Figure 8: Reasons of buying from Daraz

Reasons behind purchasing from Daraz

Better product Better service On time delivery
Reasonable price Secure and reliable All of the above
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8.33% 4.17% 25.00%

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Figure 9: Products typically bought in Daraz

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 10 5 10
5
0 16.67% 4

37.50% 8.33% 1

Grocery Clothes Electronics Jewellery automobile The figure shows that most of the
individuals buy from Daraz because of reasonable price and better products.

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3.9.2 Secondary Data Presentation and Analysis

Secondary data are the data that have already been collected by others and are readily available
from other sources. Secondary data are collected from different sources such as the website of
Daraz. Several other online services are also used.

Daraz Fan overview in Nepal

Figure 10: Daraz fan overview in Nepal

Source: (socialbakers)

Figure10 shows that the website visitor trend decreased for daraz.com.np.

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CHAPTER 4

CONCLUSION AND SUGGESTIONS

4.1 conclusion

Ecommerce 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 center and
how they have been managing the network security issues. After the completion of this project,
we come to know that Daraz.com 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.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 best 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. 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.
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4.2 Suggestions
 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, DoSattacks 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.
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REFERENCES
Saud, A.S & Bhusal.R E-COMMERCE :kriti books and publisher

Adhikari,S.N(2075).Essentials of E-commerce and E-Business,Kathmandu;Buddha

publication. https://www.Daraz.com/

www.socialbakers.com/statistics/facebook/pages/detail/1879568055485913-Daraz.com.np
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