TRIBHUVAN UNIVERSITY INSTITUTE
OF SCIENCE AND TECHNOLOGY
A REPORT
ON
E -COMMERCE SITE IN NEPAL:
[Link]
Submitted to:
Mr. Sashi Shekhar Acharya
In partial fulfillment of the requirements for the Bachelors of Science in Computer Science
and Information Technology
Submitted by
Gaurav Nepali(28044/078)
Baisakh, 2082
CERTIFICATE
This is to certify that the project report titled "E -COMMERCE SITE IN NEPAL:
[Link]” has been successfully completed and submitted by the following
student:
Gaurav Nepali (Symbol No.: 28044/078)
This report has been submitted in partial fulfillment of the requirements for
the E- Commerce course under the academic curriculum prescribed by Patan
multiple Campus. The student has undertaken this project with sincerity,
dedication, and academic integrity. The report is a genuine and bonafide
record of their original work carried out under our supervision and guidance.
We wish them all success in their future academic and professional endeavors.
Sashi Shekhar Acharya
E-Commerce teacher
Department of CSIT
Patan Multiple Campus
Date: 2082/01/02
Abstract
This study analyzes Daraz, Nepal’s top e-commerce platform, uncovering its Alibaba -
backed strategy, revenue streams (10% seller cuts, promo fees), and local hacks—like eSewa
payments and motorbike logistics. Despite COD reliance and rural delivery headaches, it nets
~NPR 660M/year. Could a Nepali rival compete? Only with localized UI, SME-friendly fees,
and "Made in Nepal" grit.
Acknowledgement
I would like to express my heartfelt thanks to our course instructor Mr. Sashi Shekhar
Acharya for their guidance and continuous support throughout this case study. Their insights
helped me deeply understand the concepts of e-commerce, especially in the context of
Nepal’s growing digital marketplace. I also appreciate my classmates for their suggestions
and encouragement.
Table of Contents
1. Introduction to Daraz
2. The E-Commerce Business Model of Daraz
3. Analysis Of [Link]
4. Revenue Models of Daraz
5. Marketing Strategy and Customer Segmentation
6. Daraz's Security and Privacy Policies
7. Daraz’s Future and Potential Growth Areas
8. Challenges Faced by Daraz
9. Detailed Revenue Model Analysis and Financials (NPR)
10. Possibility of a Similar E-commerce Platform in Nepal
11. Conclusion and References
Chapter 1: Introduction to Daraz
Daraz is Nepal's leading e-commerce platform, originally launched in South Asia and later
acquired by Alibaba Group. It connects millions of buyers with sellers across categories like
electronics, fashion, home goods, and groceries. Its success in Nepal stems from adapting to
local infrastructure challenges, embracing mobile-first strategies, and integrating with local
payment systems like eSewa and Khalti.
Daraz Overview:
Parent Company: Alibaba Group
Founded: 2012 (acquired in 2018)
Operational in Nepal Since: 2018
Headquarters: South Asia hub; regional office in Kathmandu
Core Services: Online marketplace, logistics, app-based shopping, seller support, and
payment gateway integration
Mission: To make it easy for anyone to buy and sell anywhere in Nepal.
Chapter 2: The E-Commerce Business Model of Daraz
Daraz operates mainly under B2C and B2B models. Its online platform allows sellers to list
products and buyers to shop using the website or app. Daraz earns from commissions, ads,
and featured listings. It also supports bulk business buying via Daraz Business.
Key Components of Daraz’s Business Model:
Marketplace listing for sellers
Buyer dashboard with order tracking
Logistics support (Daraz Express/3PL)
Integrated payment systems (COD, wallets, cards)
Campaigns and seller promotions
Daraz also runs Daraz Express (DEX), its own delivery network for fast logistics in urban
areas. For remote locations, it partners with local couriers.
Its mobile-first strategy ensures access across Nepal using lightweight, optimized apps. It
engages users via flash sales, push notifications, and interactive features like the One Rupee
Game.
Figure for B2B Model:
Figure for B2C Model:
Chapter 3: Analysis Of [Link]
3.1 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.
Web design
3.2 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.
3.3 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.
Chapter 4: Revenue Models of Daraz
Daraz has a diversified revenue model:
Seller Commission: 5% to 15% based on product category.
Featured Listings: Sellers pay to boost visibility.
Daraz Mall: A premium section for verified brands with higher listing fees.
Campaign Participation Fees: Sellers pay to join big sales (e.g., 11.11).
Logistics Fees: Delivery charges paid by customers or sellers.
Seller Tools & Analytics Access: Advanced services for sellers.
For example, if a seller sells an item worth NPR 2,000 under a 10% commission rate, Daraz
earns NPR 200 from the transaction.
Chapter 5: Marketing Strategy and Customer Segmentation
Daraz's marketing strategy revolves around digital media. It uses:
Facebook, Instagram, TikTok: Influencer unboxings, giveaways, and countdowns
Email marketing: Cart reminders, discount alerts
SEO and SEM: Google Ads and optimized product listings
In-app engagement: Spin-the-wheel games, rewards, coupons
Customer Segmentation:
Urban buyers: Kathmandu, Pokhara, Lalitpur—targeted with tech and fashion
Younger audience: Students and early professionals targeted with gadgets, fast fashion
Regional buyers: Focused campaigns using local language content
Daraz’s major campaigns like Dashain Dhamaka, 11.11, and Black Friday bring millions in
sales. For example, in the 2023 11.11 campaign, sellers reported up to 500% increase in
sales.
Chapter 6: Daraz’s Security and Privacy Policies
Daraz follows secure online practices:
SSL encryption for website and app
Two-Factor Authentication (2FA) for sellers and users
Secure Payment Gateways: Through verified vendors
Privacy Compliance: Follows Nepal’s Electronic Transactions Act and respects GDPR-style
policies
User data is protected and never sold to third parties. The platform regularly warns users
about phishing links and fake Daraz pages.
Chapter 7: Daraz’s Future and Potential Growth Areas
Daraz is expanding its services in:
E-Grocery (Daraz Mart): Same-day delivery in Kathmandu
Express Delivery: Daraz Express is scaling to smaller towns
AI Product Suggestions: Personalized homepage deals
Cross-border shopping: Alibaba-backed imports from China
The platform is also testing warehouse automation and real-time package tracking.
Daraz is investing in influencer partnerships, AI analytics, and regional language support to
reach more users outside major cities.
Chapter 8: Challenges Faced by Daraz
Cash-on-Delivery Dominance: Slows down digital payment adoption
Rural Logistics: Delivery issues in remote areas due to poor roads
Return and Refund Management: Complexities in handling defective items
Trust Issues: First-time buyers often hesitate
Competition: Local platforms (SastoDeal, HamroBazar) and Facebook Marketplace are
active rivals
Daraz also faces pressure to retain sellers by improving payout systems and reducing
platform costs.
Chapter 9: Detailed Revenue Model Analysis and Financials (NPR)
Let’s estimate Daraz's revenue in Nepal:
Active Sellers: 10,000
Avg. Monthly Sales per Seller: NPR 50,000
Gross Monthly GMV: NPR 500 million
Avg. Commission (10%): NPR 50 million/month
Promotional Income: NPR 5 million/month (from paid features, Daraz Mall)
Total Monthly Revenue: NPR 55 million
Annual Revenue Estimate: NPR 660 million
Note: These are estimates based on publicly visible data and general seller behaviors.
Chapter 10: Possibility of a Similar E-commerce Platform in Nepal
A Nepali-owned platform like Daraz is not only possible but promising.
Why it could work:
Rising internet users (especially mobile-first)
High digital wallet penetration (eSewa, Khalti)
Increasing youth engagement in online shopping
What’s needed:
Affordable logistics partnership
Localized UI (Nepali language support)
Seller-friendly payout terms
Integrated payment with local gateways
Low commission rates to attract SMEs
Challenges:
Competing with Alibaba-backed Daraz
Building nationwide logistics
Gaining user trust quickly
Marketing budget and tech investment
Opportunities:
Focus on “Made in Nepal” goods
Partner with local cooperatives and farmers
Target second-tier cities with low-cost product ranges
If well-executed, a local platform could become the SastoDeal meets Amazon of Nepal.
Chapter 11: Conclusion and References
Daraz has reshaped how people shop in Nepal, offering a reliable platform for both buyers
and sellers. Its success lies in blending international standards with local customization.
Moving forward, Daraz must keep innovating in logistics, personalization, and user
experience to retain its lead in Nepal’s digital economy.
References:
1. [Link].
2. Adhikari,S.N(2075). Essentials of E-commerce and E-Business,Kathmandu;Buddha
publication.
3. Electronic Transaction Act of Nepal (2063).
4. Daraz Seller Center.
5. Alibaba Group Annual Report (2023).
