Bhatbhateni has a dominant offline presence as a retailer. Why was the business taken online?

We came up with an idea to bring Nepal’s biggest departmental store online so that people living abroad could also avail its services for purchasing items for their families in Nepal. In April 2011, our site went live with a limited range of products available in the physical stores.

 

Our initial vision was to make our customers abroad feel as if they were shopping at any one of our physical stores in Nepal. Now we are almost ready to cater locally.

 

Three years down the road, how has been the experience in terms of sales and cost efficiency in comparison to offline sales through stores?

Since our inception, our sales has increased significantly and currently we are right up there with our competitors. On special occasions like Father’s Day, Mother’s Day, Rakshya Bandhan, Dashain and Tihar, we have been generating record sales each progressing year. At the moment, buying through our online store costs a little more than buying from our stores. However, with online purchases, delivery is prompt and at the customer’s doorstep. We believe we offer the best rates and service among Nepal’s online stores. 

 

Who are your targeted customers? Are your services limited to the Nepali market or extend to international territories?

Our target customers are mostly Nepalis living abroad. The reason behind this is the ease of online payments and their wish to buy something for their loved ones back home. We will soon be offering a ‘Cash on Delivery’ mode to attract local customers as well. Currently, our services are limited to delivery within Nepal. However, we do look forward to expanding our service globally; sending Nepali goods around the globe.

 

Your store provides range of online payment methods. But generally it is perceived that Nepali consumers don’t trust or are not accustomed to using online payment methods. What has been your experience in this regard? 

I believe that people need to be educated about shopping online. It’s all about winning the trust of people and convincing them that online payments are 100% secure. Those who have access to the internet are still not very comfortable about transacting online. People feel that the risks outweigh the benefits. This was also an issue in India where the online shopping industry experienced a huge growth as they introduced online shopping through credit or debit card provided by their respective banks. I am quite sure the ecommerce industry in Nepal would also grow if online transactions were promoted heavily by banks and other entities. We are always ready to work with various payment partners and banks in the days ahead to promote and familiarize people with online transactions. 

 

Consumers who have been in habit of touching and trying a product before buying find it hard to buy products online. How have you been responding to this habit? Do you have refund or product exchange policies to satisfy this consumer need?

It really depends on what you are buying. If you are buying clothes, customers would prefer to feel, touch and try but if you are buying body sprays or a sack of rice, you really don't need to feel them.

 

We have a ‘no questions asked’ return policy for some goods that are sold online. In case customers are not satisfied with a product received, they can return it to the delivery personnel at the time of delivery or can contact our customer support team and we do the needful. However, we insist our customers to check all the items at the time of delivery.

 

What are the challenges of taking a business online in Nepal?

Nepal has many first time online buyers. This means that they have not yet made up their mind about what to expect from ecommerce websites. Like I said earlier, payment gateways are not easy to use. Postal addresses are not standardized. Managing logistics is another major challenge. 

 

What I also feel is, the government must enforce cyber law very strongly for a full-fledged and smooth e-commerce operation based on the Electronic Transactions Act. It helps for wider e-commerce activities to take off officially in the near future. However, the real challenge of the Act depends on how well it addresses various issues such as international monetary transaction and the vastness of security measures over the internet. The threat of cyber crime is another imminent concern; we already have quite a few cases in Nepal.