Over the past few years, e-commerce has been steadily growing in popularity in Nepal. The mobile usage in the country is also increases due to internet. More and more people are turning to online shopping as a convenient and accessible way to purchase goods and services. Here, we will explore the reasons behind the increasing popularity of e-commerce in Nepal and its potential for growth in the future.
Convenience and accessibility
One of the main reasons for the rise of e-commerce in Nepal is the convenience and accessibility it offers. With just a few clicks, consumers can browse and purchase products from the comfort of their homes. They do not need to physically visit a store. Further, this is particularly appealing in a country where traffic congestion and limited public transport can make it difficult to travel to physical stores.
Increased internet and mobile usage
The increasing internet and mobile usage in Nepal have also contributed to the growth of e-commerce. According to a report by the Nepal Telecommunications Authority, the number of internet users in Nepal has grown from just 3.3 million in 2010 to 32.3 million in 2020. Similarly, the number of mobile phone users has increased from 7.5 million to 38.5 million during the same period. With more people having access to the internet and mobile devices, e-commerce has become more accessible to a wider audience.
Expansion of online marketplaces
Another factor contributing to the growth of e-commerce in Nepal is the expansion of online marketplaces such as Daraz, Sastodeal, and NepBay. These platforms offer a wide range of products from various sellers, providing consumers with a convenient one-stop shop for their shopping needs. Additionally, these marketplaces often offer discounts and deals, further incentivizing consumers to shop online.
Payment options and trust
One of Nepal’s biggest barriers to e-commerce adoption has been the lack of trust in online payment systems. However, the increasing availability of secure online payment options such as eSewa, Khalti, and IME Pay. They has helped to build consumer trust and confidence in e-commerce. Cash-on-delivery options are also widely available, providing consumers with an alternative payment option.
Future potential
While e-commerce in Nepal is still in its early stages, the growth potential is significant. According to a report by Research and Markets, the e-commerce market in Nepal is expected to grow at a compound annual growth rate (CAGR) of 13.8% between 2020 and 2025. This increase in internet and mobile penetrationed is responsible for direct growth. Moreover,it is possible byexpanding online marketplaces, and growing consumer trust in online payment systems.
Hence, the popularity of e-commerce in Nepal can be attributed to its convenience and accessibility. The increased internet and mobile usage are also shaping the future. Thus, the expansion of online marketplaces and the availability of secure online payment options are also responsible. With the potential for significant growth in the future, e-commerce is poised to become an increasingly important part of the Nepalese economy and retail landscape.
