Over the past decade, e-commerce has transformed the way the business is being done in the developed world. It instantly became a successful model in regions like USA and Europe, and now the developing economies are also using this tool to grow their business. Nepal is a developing economy and according to The Economic Times, the country will experience a dip in economic growth in the year 2015 due to political turmoil and deadly earthquakes that disrupted the business activity in the country. However, the statistics compiled by the World Bank also suggest that there will be improvement in the year 2016 as the growth rate will climb up from 3.4 percent to 3.7 percent. This economic growth can be attributed to the flourishing e-commerce sector in the country.
With the influx of latest technology from neighboring countries, such as India, Nepal is on its way to success through e-commerce. Online shopping is taking the Nepalese market by storm and it is facilitated by fast speed inexpensive 3G and 4G internet technology. The convenient modes of payments and user friendly shopping apps are further paving a pathway to unprecedented growth in the e-commerce sector.
According to a report compiled by Kaymu, a leading online marketplace in Nepal, the e-commerce sector is growing at a rapid pace, people are showing more trust in these marketplaces that offer a range of products from electronic items to home appliances to apparels. People are more inclined towards purchasing mobile phones, used motor vehicles, motorcycles, computer accessories and laptops through online platforms and this is evident from the pie chart below:
These e-commerce ventures are giving the traditional brick and mortar stores a run for their money. Some of the leading enterprises are now digitizing their operations and offer online shopping options via their official websites. The businesses now realize the significance of e-commerce and are now reserving a good chunk of their revenue to be spent on digital marketing. The advantage they aim to achieve is that not only they will have increased online presence, but can also get feedback from their consumers instantly via social media sites and other digital modes.
Compared to developed economies where the e-commerce industry has faced a boom and matured, developing economies such as Nepal have a lot of room for expansion and development. All the trends and signs point toward a positive direction. The graph below demonstrates that the majority of people in Nepal visit various e-commerce websites between 11: 00 am to 04: 00 pm and most of the transactions also take place during these hours.
The developing economies may have joined the bandwagon a little late, but they are also slowly realizing the potential and benefits that e-commerce sector offers. The e-commerce sector is still in its initial phase in Nepal, however many successful ventures, such as Kaymu and Hamrobazar.com are important actors playing a very crucial role in the growth of this industry.
[ This post is written by Junaid Ahmed. He holds an MBA Marketing degree. He has been working for many reputable organizations since 2010. He has a passion for creative and analytical writing. ]