How is e-commerce doing in Nepal? What progress has it made?

eCommerce is on progressive path and the trend is evolving with many players coming into the arena with their unique business models. Since the inception of eCommerce one and half decade ago, we have witnessed a major breakthrough in technological innovations, high security measures with more pleasant customer experiences. With increasing rate of Internet adoption and multiple online platforms including tablets and smart phones, the future of online business is bright in our country.

 

What is the annual growth rate of the online business?

The annual growth rate of thamel.com is 12-18%. On an average online businesses are growing slowly because all online business models have not succeeded significantly and some of them even did not survive their nascent stage.

 

What are the usual things that are bought and sold online in Nepal?

Almost all things (goods and service) are sold online in Nepal as long as they are consumable and deliverable. This includes sentimental to high value items. There is no limit what one could sell online given that one maintains good supply chain management through a virtual warehouse.

 

What are the challenges of this sector?

There are plenty of challenges that this sector faces. For example, low level of e-readiness on the whole because of digital divides, lack of international payment gateways in Nepal, lack of reliable third party delivery system, low rate of Internet accessibility, and language localization—as most online business use English. 

 

Has there been any effort from the government to promote online business in Nepal?

We found the government e-friendly in terms of policy for online business. However, they have not put any significant effort to promote online business and at the same time it is good thing that they have not put any barriers or restrictions to those venturing into online business.

 

What do you expect the government to do to promote online business?

Government can promote online fraternities by e-inclusion in all aspects of its governance. It helps in a long run to curtail digital divide.

 

Can you please tell us something about your company, Thamel.com?

Thamel.com is Nepal’s first e-commerce company serving Nepali diaspora, expatriate community, local and international customers. Today with a team of 23 staff members it is grossing an annual turnover of US$ 6.6 million including online remittance service from US to Nepal. It caters to Nepali diaspora enabling them to buy various products and services for their friends and families back here in Nepal. They can send money through the Internet and finance loans for themselves to buy house, apartments, land and automobiles within Nepal. 

 

We have already catered our business services to more than 100,000 customers around the world since 1999. With national and international recognitions, thamel.com continues to use internet and information communication technologies to introduce socio-economic development opportunities in Nepal.

 

What is the size of your investment? How much have you invested so far?

Our initial startup capital was Rs 2 million. It has now soared up to more than Rs 20 million.