Sushmita K.C
PUSOB, MBA 3rd
E-commerce
is the process of buying and selling of goods and services, over an electronic
network, through the internet. E commerce is now major part of the Internet.
Many Countries and Companies have started selling online, and started Home
delivery, online payment, satisfaction guaranteed, and money back returns
are provided by e-commerce companies for trusted and quality products over the
internet. In past recent years due to education and reach to Internet among the
many people in Nepal has brightened the future of E-commerce. The interest of
students in the field of IT and the growth of IT companies has helped a lot in
the awareness and interest in youths for Internet and IT. This has directly
created more opportunities to uplift E-Commerce in Nepal. It is noted
that 63% of total population uses internet service in Nepal. This status proves
that there is a good scope of E-Commerce in Nepal.
With
the introduction of new technologies, digital stores and interactive apps,
there is a big boost in sector of e-commerce. Many online portals and shopping
portals are being launched. They are doing good business along with providing
the best services. They provide festival offers and various discounts to
customers. A large number of people in Nepal stills think twice before
purchasing online. Despite of the technological advancement, security is still
a concern in people’s mind. Various frauds and scams are hampering the growth
of e-commerce in Nepal .As per growth of e-commerce in foreign land it's obvious
that in Nepal also e-commerce business is growing but still it has not
come up-to the point it was meant to be. Many obstacles are there which i will
be mentioning in the following paragraph. Many of us are aware or not but most
of the buyer from internet in Nepal usually order through social sites like
Facebook or Instagram where you can only order but not online payment. Payment
can be done only after we receive what we order i.e. cash on delivery.
v Current practices of eCommerce in
Nepal
Many
online portal and shopping portal are launched. Peeping into the future of Ecommerce,
launch of few large online shopping portals was thought as milestone, everyone
thought there will be turnaround in the E-commerce industry in Nepal. Now having
dozens of virtual Nepali stores in web, they still have the same problem of
payment and belief of people, they still have a level of trust to build among
the visitors. Some of the successful companies playing a vital role in the
growth of this industry are mentioned below:
3. Foodmandu
(www.foodmandu.com)
4. Muncha (www.shop.muncha.com)
5. Metrotarkari
(www.metrotarkari.com)
Payment
types used by online shopper in Nepal are:
1.
E-sewa
2.
I pay
3.
Hello paisa
4.
PayBill
5.
Online Banking
v Difficulties and Challenges of e-commerce
in Nepal
Talking
about the difficulties of e-commerce in Nepal here i have listed some of the
main problems:
1. Lack of
trust: Imagine buying shoes which look awesome in the photo but real douche
when delivered, it will certainly not give a good feeling. And once the trust
is broken, it takes an awful lot of time to regain it.
2. Lack of awareness: With lack of basic computer knowledge with major of
Nepal's population there is lack of awareness among them that there exists a
world where you can get everything online just by using simple e-commerce
sites. I think knowledge must be spread out and people must be known about the
facilities.
3. Lack of competitors: When there is no competition at all its obvious
that the price will be high. Reason for less competitor is people not taking
initiative and lack of risk bearing capacity. It is believed that in Nepal
online shopping is expensive and people rather prefer to go in shop and buy
rather in internet.
4. Lack of an effective Payment
Gateway: Now main problem about e-commerce business in Nepal is facing is payment gateway. Let me tell you
briefly about payment gateway. Payment gateway is nothing more than paying the
price of goods online. In Nepal we don't have system where we could pay online.
We are even restricted for doing the international shopping. Until and
unless our country's responsible people take a step forward and help
dealing with a bank for legal and secure process of payment gateway we Nepalese
still have to dream about international shopping. Soon or later it has to come
so why not early?
5. Lack of Investment: Unlike in most of the countries, hedge fund and Venture capital fund are
very few in Nepal or are non-existent. When it comes to investment in the
e-commerce sector it is practically non-existent with some exceptions. Also,
the startup culture hasn’t gained much momentum which has resulted in the
insolvency of the startup in the e-commerce sector.
v
Future of
E-commerce in Nepal
The future of
e-commerce business in Nepal is very much brighter. When after finally
payment gateway's problem is solved then there start's the rise of scope
of e-commerce in Nepal. Since people already have started taking
innovative idea of creating a online wallet system through
which we are enabled to do many online shopping and online
marketing at least locally within the country. There will be many
e-commerce sites through which people will be benefited with many aspects here are a couple of e-commerce websites like Muncha and Thamel.com
which started the business with the turn of the century. These sites mostly
focused on sending gifts to relatives in Kathmandu from abroad. But after 2010,
when the internet and communication took a giant leap with the rise in Android
phones and cheap internet, e-commerce started to emerge. Use of
technology will grow rapidly where even we Nepalese can be a creator in
technology field as well which is totally in the minimal volume in the present
context. I hope technology will grow so rapidly that even groceries will be
possible to do online. It's not that wallet system hasn't brought change in
e-commerce in Nepal. Obviously people has done good job after creating wallet
but still wallet is not enough for international shopping. Until payment gateway's problem will be solved
we Nepalese still have to rely on what we have i.e wallet like eSewa, Goji,
Khalti, etc.As far as business e-commerce is concerned, it needs two main thing
to operate they are Device (Computer, Mobile, Tablet, etc) &Internet (To
surf the web or app). So as the above suggests, Nepalese people have now got
both Internet & device widely. It is, therefore, a strong E-commerce
business market and clever Investors and Businessmen knew this at the right
time. With the growing generation every business will have to adapt and think
their online existence in future depending on the nature of business.
Ø
Some
benefits of e-Commerce:
1. Reduce
effort and time consumption.
2. Price will
be standard for all the customers.
3. Easier to
compare prices.
4. Lots of
choices.
5. All time
reachable.
6. Reduce
employee costs.
v
SWOT
analysis of E-commerce
In SWOT
analysis here we try to find out the strengths and weaknesses of e-commerce in
respect of Nepal business environment. Then after we try to identify
opportunities presented by that environment and the threats posed by that
environment.
2.1 Strengths:
Ø Global
market: E-commerce biggest strength is the boundary less access in other word
no brick structure is mandatory to do business or no specific boundary is
required. It enables all the companies to expand them to global level. The widening
of geographic retail markets may facilitate the development of global
retailers.
Ø Time
saving: Transaction through internet is no doubt very fast. It saves time by
reducing physical movement.
Ø Price/Product
comparison: Information and to choose are some of the right which every
consumer has. On the same footing e-commerce provide platform to consumers to
compare price and product effectively and efficiently. It will tend to have far
greater bargaining effectively and efficiently.
Ø Flexible
target market segmentation: The success of business depends on right choice of
segmentation. Target market segment here in e commerce is flexible can be
modified any time.
Ø Faster
buying procedure: The buying is just a click away from the seller. No physical
movement is required, no hunting of right product at right price is to done by
the consumer this make the buying process faster.
2.2 Weakness:
Ø Security:
Security is a biggest challenge in to progress of e commerce. Customer always
found themselves insecure especially about the integrity of the payment
process.
Ø Fake
websites: Many fake websites are available on net which promises better service
and secure dealing. These web sites can not only disgrace e-commerce but also
bring bad name to e-commerce.
Ø Fraud:
Personal and financial details provided for trading purpose are misuse by
hackers their personal undue interest.
Ø Fewer
discounts and bargaining: Hardly online businesses offer discounts and
bargaining cannot be possible.
Ø Long
delivery timing: The task of Delivery is usually outsourced, who do not care
about the timing of the seller. They provide their services as per their own
convenience. Sometime the delivery time may extend to days or weeks which one
cannot wait for.
Ø Impossibility
of physical examination: Products whose choice is merely depend on its physical
condition of the product with need personal touch before selection are not
suitable for e-commerce business. As Online products cannot be touched, wear or
sit on the products.
Ø Limited
advertising: Limited advertising opportunities are available because in e
commerce one cannot go for mass advertising. The advertising is limited only to
computer literate person. And out of them only those who are comfortable with
e-commerce applications.
Ø Customer’s
satisfaction: There is no physical and personal or direct face to face
interaction between customer and the seller. Therefore the scope of convincing
the customer does not exist.
2.3 Opportunities:
Ø Changing
trends: People are very brand conscious. They are interested in buying branded
stuff rater then local. E- Commerce is
fast and effective even financial transactions can be made from any part of the
world. People of tomorrow will feel more comfortable to buy products through
internet only.
Ø Increasing number of user: Daily number of
internet users is increasing. People feel more comfortable to shop online.
Ø Regular
Global expansion: E commerce can be operated anywhere any time without any
interruption. It always has a scope of expansion. All new population and
existing population who
are
not the user of e commerce are the target expansion.
Ø High
availability (24 hour and seven days a week): Along with each and every click
of the mouse business is in operation. Those who are busy in day time and
cannot spare time for them self, have all the opportunity to shop as per their
convenient time.
Ø Wide
business growth: E business has wide scope and broader vision to grow. Business
always took place in gap. Gap filling is a never ending process hence the
growth of business is also never ending process.
2.4 Threats:
Ø Competitors:
Along with local competition, global competition also exists. Competition is
increasing day by day. Big companies have already entered in this field. They
are making people habitual at the cost of their companies.
Ø Changes
in environment: Change in trends, fashion and fad can distress E Commerce.
Ø Privacy
concerns: Fears that information can be misused lead to spam e mail or identity
fraud.
Ø No
direct interaction: In e commerce there is no direct interaction between
customer and the seller. There is no scope of bargaining. People prefer to buy
physically as compare to online to experience personal feel.
Ø Fraud:
Persons using unfair means to operate e-commerce can damage the confidence and
faith of common people.
Ø Risk:
Nature of fraud.
v
Recommendation
for E-commerce business in Nepal
Today or tomorrow anyhow the problem of payment gateway will
be solved. It's not and never that there will be no payment gateway but till
the problem is solved i would like big name and fame companies to start a
bright initiative ideas and sites for e-commerce in Nepal which
would bring the revolution in Nepal at the field of technology. We must always
be active on the development, process and business policy and strategy on E-commerce
business in Nepal. Now, its time to go online, sell online, Payments should be
easy. Every individuals trust must be built by business owners.
REFERENCE
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