The journey of e-commerce in Nepal is not that long, in a short time it has brought about a great transformation in society. This service, which was previously city-centric, has now spread across the country. In a decade, the access to smartphones and cheap internet has accelerated its pace.

Digital wallets and growing consumer confidence have led to an increase in online shopping habits. We are also seeing a significant increase in customers outside the Kathmandu Valley for Daraz Nepal. The participation of young and small entrepreneurs has made the market dynamic. Digital commerce is no longer just a trend, it is becoming a structural pillar of Nepal's economy.

The journey of e-commerce in Nepal began with the launch of 'Thamel.com' around 2000. At that time, the online sale of goats became a topic of discussion in the international media. After Thamel.com, Muncha.com launched an online department store. It did not limit itself to gifts but also started selling other retail items. The foundation of digital payments was laid after the launch of e-services in 2009. In 2010, Foodmandu changed the food culture in urban areas. SastoDil arrived in 2011. Kemu Nepal was launched in 2013 under the ‘marketplace’ model.

Daraz Nepal was established after Daraz Group acquired Kemu in 2016. This added a new dimension to Nepal’s e-commerce sector. In 2018, China’s Alibaba Group acquired Daraz. This is considered the ‘turning point’ of Nepal’s digital market. With such a large foreign investment and expertise, Daraz became synonymous with e-commerce. The Covid pandemic of 2020 and 2021 made people accustomed to online shopping. Now, e-commerce is not limited to market-based retail. It includes a large ecosystem of shipping, digital payments, and fintech. Thousands of small and medium entrepreneurs are now involved in online business, which has helped local products reach the market.

Social media-based business is also booming in the market. Buying and selling through Facebook, TikTok and Instagram has increased significantly. The government has passed and implemented the ‘Electronic Commerce (E-Commerce) Act, 2080’. This law has prepared a framework for regulating online business. Now, there is a provision that those doing online business must create their own platform or website. Entrepreneurs must be mandatorily listed on the portal of the Department of Commerce. The right of consumers to return goods if they are not delivered on time or if they are delivered with defects has been ensured.

Along with the growth of e-commerce in Nepal, there are also some challenges. The address or mapping system here is not yet organized. This sometimes makes it difficult to deliver goods to the designated location. Some problems have also been seen due to the lack of full access to skilled manpower and technology. However, these problems are being resolved with the government’s positive thinking and policy discussions. The government has emphasized on expanding broadband infrastructure and QR payment systems. Efforts towards financial inclusion have indirectly benefited digital platforms.

The future of e-commerce in Nepal is very promising. Our young population and growing digital literacy are our great strengths. We are now expanding our reach to tier-II and tier-III cities. Expanding the transportation network across the country is our priority. Our goal is to fully integrate digital payments into daily transactions. We expect clearer regulations and a simpler tax system from the government. Digital entrepreneurs need to be encouraged and investment in infrastructure needs to be increased. Our market is still small compared to neighboring countries India and China, but our growth potential is very high.