E-commerce in Nepal has been around for more than two decades. Thousands of eCommerce companies in Nepal are now operational as a result of advancements in information technology and its broad reach. In August 2020, there were already over 40,000 commercial websites registered in Nepal.
During these years, many Nepalis, primarily urban masses and youth, have adapted to online shopping. Furthermore, during the recent lockdown imposed to control the spread of Covid-19, the popularity and significance of eCommerce companies in Nepal skyrocketed. And it’s only going to get bigger.
This has increased competition among e-commerce sites. Despite this, some e-commerce sites have been successful in establishing their worth in the market.
Top 5 eCommerce Companies in Nepal
Daraz is without a doubt Nepal’s leading e-commerce site. This site, which began in 2013 as Kyamu and was later acquired by Alibaba Group in 2018, has already attracted over 100,000 users in Nepal. It is an online marketplace that connects thousands of sellers with potential buyers.
According to Daraz Nepal, it offers around 500,000 products in over 100 categories such as groceries, apparel, electronics, home appliances, and so on, and delivers 200,000+ packages per month.
It is another e-commerce site that has successfully attracted thousands of customers as well as vendors or partners in Nepal. Sastodeal, which was founded in 2011, is now one of the most popular e-commerce sites in the country. It has also recently collaborated with Myntra and Flipcart, two well-known Indian e-commerce sites.
Sastodeal provides its customers with a wide range of groceries, clothing, home appliances, and electronics from thousands of business owners and vendors. Furthermore, Sastodeal guarantees the return and exchange of the product within a certain time frame.
Hamrobazaar is one such e-commerce site that has carved a niche for itself in the hearts of its users in Nepal. According to the site, this site receives approximately 800,000 unique visitors per month. It is a free virtual platform that allows its users, whether individuals or businesses, to list a wide variety of firsthand and secondhand products for online buying and selling. This website connects sellers with potential customers.
It allows its users to buy and sell a wide range of new and used products, from clothing and accessories to travel and tour packages.
4. NepBay (Thulo.com)
NepBay began in 2007 as an online directory of products and shops in the Kathmandu valley and has since evolved into a successful online marketplace for Nepalis. With hundreds of stores across the country, NepBay offers its customers over 25,000 products in over 700 categories such as home decor, gadgets, automobiles and vehicles, gift cards, groceries, food and beverages, pet supplies, and many more.
NepBay bills itself as an e-commerce powerhouse, having served over 5,000 businesses in the country. And they did it through the ecosystem of solutions and services provided by five different companies under their parent company, ‘Thulo Group.’
It is a popular e-commerce site among Kathmandu valley foodies. Foodmandu, founded in 2010, allows its users to order foods and dishes from hundreds of restaurants in the valley. And their orders are delivered to their doorsteps.
There are currently no food delivery apps that can compete with Foodmandu’s popularity. Foodmandu also made a statement during the lockdown by changing its business model and partnering with Sabji Land. It also began delivering fresh groceries such as fruits and vegetables to customers’ homes. This has added to its already well-established reputation in Nepal’s e-commerce scene.
The Rise of eCommerce in Nepal
Ecommerce in Nepal is on the rise, with a recent surge of startups and companies venturing into the online space to capitalize on the growing trend. Online shoppers in Nepal are increasingly turning to the internet. And they are doing so to purchase items ranging from clothes and accessories to electronics and gadgets.
The increase in online shopping is driven by a number of factors, including the convenience of being able to shop from the comfort of one’s own home, the wide range of products available online, and the competitive prices offered by many online retailers.
With the growth of eCommerce in Nepal, there is a growing need for reliable and affordable delivery services. At present, there are a number of delivery companies operating in Nepal, but many of them are unable to meet the growing demand.
This has created an opportunity for new players to enter the market and provide a much-needed service.
The Future of eCommerce in Nepal
At the start of 2022, Nepal’s internet penetration rate was 38.4 percent of the total population. The status of eCommerce in Nepal is still at a nascent stage and is growing as a result of increasing Internet use, mobile and digital payments, and cashless transactions.
In the market of eCommerce, the number of users is expected to amount to 10.3m users by 2027. User penetration will be 22.6% in 2022 and is expected to hit 31.8% by 2027. The average revenue per user (ARPU) is expected to amount to US$149.50.