Rise of E-Commerce

The internet has made possible to conduct, transactions and purchases through the dot com. This idea, pioneered and tested in developed nations, had a slow rise in Nepal. Why wouldn’t it? We the people have always had a slight distrust of the internet, and hands on approach when purchasing products. The e-commerce industry of Nepal was initially unable to see a boom, but with the changing times, a fast paced lifestyle, new regulations and easy methods of payment, individuals have increasingly started to rely on e-commerce sites for purchases of everyday necessities to luxury items. 

Nepal has seen a staggering rise in e-commerce portals, saturating the market and developing competition. A few companies have stood the test of time and have been providing excellent services to their clients. They are developing more effective methods of doing business with one simple goal, "Making lives easier." Establishments such as Hamrobazar, Khalti, Daraz and Foodmandu have each excelled in their field, providing a window to the people, simplifying transactions, and helping shape the e-commerce market in Nepal. 

We sat down with the team of these pioneering establishments to know more about the e-commerce market in Nepal, how their establishments have shifted the paradigm of e-commerce in their field, what insights they have on the future of E-Commerce in Nepal. 

Daraz 
In conversation with Jai Kavi, Managing Director- Daraz Kaymu Pvt. Ltd.

How have you seen the E-Commerce industry in Nepal? 
Having been here when Daraz first started out as Kaymu, growth has been very impressive in Nepal.  But what’s great is that this is despite all the challenges that Nepal faces, and more and more Nepalis are embracing this new convenient way of shopping.

Impacts of your establishment in shifting the paradigm of E-Commerce in Nepal? 
Daraz is the leader in the industry, and has always been at the forefront. This has meant that we are not only the experimenters, but also the trailblazers, introducing new concepts to the Nepali market. Most recently we have started using Artificial Intelligence algorithm that offers personalized recommendations to our users.  This is likely the first implementation of AI in Nepal.

Which sector has your establishment helped enhance? 
Given we are a horizontal marketplace offering the widest selection of products to the market, Daraz is helping a huge number of vendors reach millions more customers.  Moreover, by offering a much wider choice than ordinarily available offline, we will also usher in a new market force which will only benefit consumers and the economy.

Where is the E-Commerce industry of Nepal headed?
In the right direction! Growth is consistent as more and more people try out buying online, and regulatory bodies are starting to recognize e-commerce.  Provided the industry is not restricted, Nepal is set to see tremendous benefits from embracing the online revolution.

Foodmandu 
In Conversation with Shyam Ratna Mali,Brand & Marketing Manager,Foodmandu.

How have you seen the E-Commerce industry in Nepal? 
E-commerce industry is at very early stage in Nepal though there are many e-commerce companies running for most of the past decade. But the things have changed in last 3-4 years.

Impacts of your establishment in shifting the paradigm of E-Commerce in Nepal?
I think we still need to go a long way to comment on this. But being a pioneer in online food delivery business, we believe to some extend we have succeeded in creating a market, and educating the people on online shopping, be it food or any other stuff. 

Which sector has your establishment helped enhance?
Foodmandu is an online food delivery company. I hope we have definitely helped our partner restaurants in their business in terms of revenue and brand awareness. Besides food, we are also delivering liquors and organic vegetables. 

Where is the E-Commerce industry of Nepal headed?
"I strongly believe e-commerce is here to stay. In spite of a few challenges, the industry is booming day-by-day and it will sooner will become integral part of our daily life. Online shopping will be the necessity to our daily life."

Khalti 
In Conversation with Amit Agrawal, Director, Khalti Digital Wallet .

How have you seen the E-Commerce industry in Nepal?
The E-commerce industry of Nepal is rapidly growing in recent times. No study has been done about its size yet, but the online shopping market is estimated to be of around 25 billion rupees (volume of transactions in a year). With the ever-increasing penetration of mobile internet, availability of smartphones at a very low cost and rapid growth of social media usage, people are opting to digital technologies more than ever before. Along with all other technological advancements, we can see the ‘digital disruption’ coming in the way people do shopping. 

Impacts of your establishment in shifting the paradigm of E-Commerce in Nepal?
Launched in the market on 26 January 2017, Khalti is an emerging digital payment platform in Nepal. With Khalti on their smartphone, one doesn’t need to visit retail shops to buy recharge cards, or go to movie theaters and stay in queue to buy tickets. These were the services mainly used by Khalti’s early adopters. Slowly, people started to pay electricity and water bills from their phone. Now, people have also started buying various event and concert tickets from Khalti. By making digital payments very convenient, Khalti is playing a role to shift the paradigm of e-commerce in Nepal.

Which sector has your establishment helped enhance?
We have facilitated online shopping sites to accept digital payments from their customers. Along with this, we have helped offline merchants (normal retail shops) to receive payments directly on mobile using Khalti Scan and Pay (QR code feature). Khalti is working to bring Offline services to Online (O2O) and make the lives of people easier.

Where is the E-Commerce industry of Nepal headed?
Until a decade ago, not many people had heard about e-commerce. These days, it’s become part of our daily life, especially among the netizens in urban areas. We are sure about e-commerce reaching village areas too very soon.

Hamrobazar 
In Conversation with Prabal Sakha, Founder Hamrobazar 

How have you seen the E-Commerce industry in Nepal?
E-Commerce was not as it is today; it started with a concept. I don’t want to say it was something that was innovated at home. Sites that provided the services of hamrobazar had already made a huge impact in the global arena, because it was practical and easy to do. As the internet took off, it eased communication and gave access to all. 

I knew that someday it would grow and this is the right foot forward. I realized that something had to be done.  The site came into existence because of the woes I had to face once when I had to sell my old cellphone. Back then what did we have to do? Visit each shop, explain the same narrative to each and hope that we get a quote close to our expectation.

What E-Commerce does is it creates value for a transaction, reduces the time span and lengthens the utility of your product.  With hamrobazar you can do just that. Let's say you have a bike that you want to sell. With just the inception of that thought, you can quickly sign up and place the details of your vehicle, immediately. You will still have access to your vehicle, compared to having it placed in a recondition house, and as soon as you sell you have access to cash to purchase a new vehicle. 

You are now also able to sell items that you had purchased a long time ago but that had just been gathering dust in your store room. One is normally unable to sell these goods due to the sole fact that it would be a great hassle. We helped simplify the transaction by creating a platform that allowed you to place the product with details, images and gave you the power to de-clutter with just a press of a button. 

Impacts of your establishment in shifting the paradigm of E-Commerce in Nepal?
I believe hamrobazar has played a vital role in the real state sector of Nepal. Any Nepali who wishes to sell their property or assets now, has a platform that doesn’t charge a fee. With the changing scenario, the process of property sales has been simplified. One does not have to depend on real estate agents and institutions and go through a long waiting period. If you have placed your estate with all the required information and is a good deal by pricing the property in a reasonable scale then there will definitely be a buyer. 

Which sector has your establishment helped enhance?
I believe we have enhanced the real estate, auto and resell market in Nepal. We have also made progress feasible. I choose to say that because we have allowed these start-ups to find space in this ever growing market. Back in the old days, one had to personally go to find a space, or go to a broker and pay a certain fees. We have helped connect real estate owners and individuals who want to find that space. Through our site, individuals are now able to find what they desire through our listings. 

Where is the E-Commerce industry of Nepal headed?
I think there is no denying the fact that this is the future. This is a part of globalization, taking note of the time when it was so difficult to connect with individuals abroad. With the internet and technology it has become so easy. It has enhanced communication, logistics and availability. Nepal is a nation of unlimited possibility. We are a nation that is in the process of development, and is in prime time for growth.