The recent trends of E-commerce in Nepal. The consumer behavior of Nepalese as far as e-commerce is concerned.

1. Current E-commerce scenario of Nepal
Contributed by:-
Utsab Shrestha, Adjunct Faculty MBA & BBA
Nepal Telecommunication Authority MIS recent data for 2017 data
• Population of Nepal- 26494504
• Mobile phone subscription- 113.68%
• Internet penetration- 59.7%
• Total internet subscribers- 15814181
Nepal has witnessed increase in internet and data subscription thanks to FTTH, optical fiber and
4G services. Also, NTA is planning to have its own satellite. This leads to internet and telephone
revolution in Nepal. Based on recent trends, many e-commerce companies are mushrooming in
Nepal, at major cities in particular. Few of the major e-commerce companies in Nepal are:-
1. Daraz (previously Kaymu)
2. Sastodeal
3. Muncha
4. Tudoholic
5. Urbangirl
6. Phuchhe.com
Recently, Nabil bank and Himalayan bank has introduced electronic payment gateway which
will simplify online business and transactions. While our neighbor, India has witnessed a
40%
60%
Population
Non internet subcibers Internet subscibers

2. spectacular rise and success of e-commerce, the Nepalese e-commerce industry is still at
nascent stage.
As a customer, I have bought frequently from Indian e-commerce sites while I stayed in India.
From FMCG products to consumer durables, I would be more eager to purchase online as they
offered attractive discounts, product assurance and greater customer service. But I have never
ever tried purchasing online from Nepalese e-commerce sites.
There are large chunk of population who belong to technology savvy-young aged and internet
accessed populace have rarely purchased from online stores in Nepal. Few who tried have
discontinued using online platform due to bad experience fuelled by bad customer service, not
exact products being delivered and lack of return policy.
It's not that these populace don't want to buy online. Online channel provides more leverage
like saving time and ease as compared to its offline counterpart. But there is a hidden demon
which is creating a fear about the drawbacks of online channel. It's been more than 15 years of
E-commerce evolution in Nepal but still we are growing at snail pace.
While players like Daraz and sastodeal seems comparatively more focused on marketing, still lot
needs to be done to tap the market. Daraz's Black friday and sastodeal's marketing campaign
will need major booster in order to spearhead Nepalese ecommerce in direction of growth so
other competitors will follow.
Based on a primary research, still more than 40% of population who have internet access still
don't buy from online. Those who have bought online more than 40% are dissatisfied. The
general populace have perception that Nepalese ecommerce is at growing phase.
We have got certain dark side of the story. Some of the major challenges are:-
a. High bounce rate while purchasing from ecommerce sites
b. Lack of availability of the ordered materials in warehouse of retailers.
c. Delivery obstacles and challenges
d. The need for touch and feel aspect of consumers.
e. Confusing return policy.
f. Lack of product reviews in websites of e-commerce providers.
g. Less price difference between online and physical channel. Sometimes, online channels
are charging higher vis-a-vis offline counterparts.
h. Lack of secured online payment gateway.
i. Lack of aggressive marketing and branding by e-commerce portals.
j. Lack of trust in online markets.
From consumer behavior perspective, Nepalese still want the touch and feel aspect while
purchasing the product. It instills confidence to buy the product. While E-commerce lacks this

3. aspect, those portals should try gaining consumer confidence by providing augmented services
like:-
• Good product reviews in not just ratings but in sentences.
• Return policy.
• Customer care and support
• Product and service quality assurance.
The details of research are as follows:-